Insight

Devolution and Local Government Reorganisation: What it will mean for planning

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Alongside this season’s edition of Local Plan Watch, Steven Butler takes a look at how Devolution and Local Government Reorganisation will impact development and promotion opportunities, as a new era of spatial planning is set to drastically change the Local Plan landscape.

The English Devolution White Paper set out the Government’s proposals to reshape England’s governance through mayoral devolution and streamlined council structures, all with the aim of contributing towards the delivery of 1.5 million new homes by 2029. Local Government Reorganisation (“LGR”) would see the replacement of the current two-tier system with simpler unitary councils, while Devolution would introduce decision-making at larger than local geographical areas by “Strategic Authorities”, either mayoral or unitary. 

Under this radically altered new system the role of spatial planning and local plans is set to change drastically, so what does the development industry need to know as this new era approaches?

The context here is that the Government’s goal is to see full devolution across England by 2030, supported by LGR.   Six frontrunner areas, including Norfolk & Suffolk and Greater Essex, are on the Devolution Priority Programme.  These areas will elect Mayors for the first time in May 2026 and will bring a new spatial planning framework covering their areas – “Spatial Development Strategies” – into force by 2028.  The rest of England is set to follow by 2030.  Meanwhile, new unitary authorities that submitted proposals this year will go live in 2028, with the remaining areas following by 2030.  

The legislative framework guiding devolution and LGR is laid out within two key Bills, both of which are passing through Parliament this year, and both of which are intended to work together.  The Devolution and Community Empowerment Bill sets up the governance structures and powers, while the Planning and Infrastructure Bill provides the responsibilities.

With the basics covered, let’s delve into some of the key details.

 

The return of Strategic Planning

The proposals contained within the devolution programme will pack the biggest punch because growth will once again be planned for at a larger-than-local scale, something that hasn’t on the whole been seen across the country for 15 years.  Strategic Authorities, of which Mayoral Strategic Authorities would have the most far reaching and flexible powers, would be required to develop “Spatial Development Strategies” (or “SDSs” for those who love acronyms), as a more effective mechanism for strategic planning across local authority boundaries.  The concept of the SDS already exists in English planning and is defined in the NPPF as a “plan containing strategic policies prepared by a Mayor or a combined authority”.  The London Plan is an SDS, for instance.  But universal coverage of Strategic Authorities, commonly being formulated at a county-scale geography, will change the game.


Whilst not mandatory, SDSs would typically be expected to specify key infrastructure requirements, strategic locations for development and an indication of the scale of development required, and apportionment of housing need to appropriate locations (as informed by the Standard Method set out in national policy).  It will be for the SDS to specify the period for which it would have effect.  Groupings of Strategic Authorities would also be enabled to establish “Strategic Planning Boards”, where it would, for instance, be effective to work across boundaries.

Based on these parameters the Government would have us imagine something that resembles a Core Strategy (we dare not mention Regional Spatial Strategies, which were ultimately deemed too remote from communities); the key difference is that it would cover the wider geography of the Strategic Authority, not just the districts or boroughs as we have become accustomed to.

"As Strategic Authorities would be able to take a broader view on the overall spatial strategy than their district or borough predecessors, we think there would be greater scope for larger-scale developments, based on alignment of jobs with housing."

Taking account of the above we see some key opportunities arising from the SDS framework. As Strategic Authorities would be able to take a broader view on the overall spatial strategy than their district or borough predecessors, we think there would be greater scope for larger-scale developments, based on alignment of jobs with housing. With the gravitas of a wider strategic plan behind them, Strategic Authorities could be better positioned to negotiate with central government for major infrastructure funding, such as major transport upgrades.

Integration with Nature Recovery Strategies and Environmental Delivery Plans could enable wider mitigation of Biodiversity Net Gain and, in areas affected by it, Nutrient NeutralityIt could also maximise the potential to align growth with nationally significant infrastructure projects, such as the Lower Thames Crossing.

To ensure the system has teeth, the government also proposes to legislate to intervene where plans are not forthcoming within the timeframe.  We consider this an important inclusion.

SDSs would be subject to the usual consultation requirements and examination, with the frontrunners commencing preparation following the Mayoral elections in 2026.  Those with strategic land interests take note.

 

Mayoral powers


Noteworthy additionalpowers that would specifically be available to Mayors would include:

  • The ability to introduce Mayoral CIL. This would sit on top of local authority CILs, wherever they are in place.  

  • Compulsory Purchase & Development Corporations – providing Mayors the power to drive regeneration, particularly in areas identified as strategic growth zones.  This would enable acquisition of land for strategic development, especially where regeneration or infrastructure projects are blocked by fragmented landownerships.  

  • Powers of intervention – Mayors would have the power to call in strategically important applications, for example where a local authority is likely to refuse an application that accords with the spatial strategy, or conversely where development would be contrary to the SDS.

 

So where does this leave Local Plans?


With the bigger picture taken care of as part of the SDS, and with the forthcoming National Development Management Policies due to standardise policies on matters of detail, Local Plans would continue to be prepared at the local level by the new unitary authorities, primarily focussed on the delivery of site allocations.  On paper, this should make it easier and less time consuming for Local Plans to get adopted because the most contentious issues (typically how much growth and where it should go) will already have been agreed as part of the SDS.  There should also be less duplication of evidence.

The unitary authorities would be responsible for addressing land supply.  This is likely to mean that the larger the area of the unitary authority, the greater the flexibility and choice it will have over the distribution of development within its area – simply by virtue of the scale of its geography.  By this measure, we also anticipate that local identity and economic geographies are likely to be reflected in the distribution of development.  Opportunities will exist to promote cases that match up the location of jobs with that of housing growth, meaning that there may well be a greater general focus on larger built-up areas.

 

"Transitional arrangements are conspicuously absent from the proposals for devolution and LGR. This means that there is no clear steer to drive plan-making forward in the interim, in the lead-in to 2028" 

 

The devil will be in the detail

Transitional arrangements are conspicuously absent from the proposals for devolution and LGR. This means that there is no clear steer to drive plan-making forward in the interim, in the lead-in to 2028.

This will very much be needed in order for the changeover to be effective.  At this stage the Devolution White Paper simply informs us that Local Plans will need to be in general conformity with the SDS, and that Local Planning Authorities should not delay development of Local Plans while they await the adoption of an SDS.

Regardless of what guidance that may appear in due course, will we see more rural areas faced with the need to plan for higher local housing drag their heels to reduce the political heat?  Will larger authorities proceed in haste to potentially secure a degree of protection?  Time will tell.  What is clear is that as the regime changes so will the type of opportunities. 

To find out how Devolution and Local Government Reorganisation might affect proposals in your area, please get in touch with our experts.

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Steven Butler

Partner, Planning

A personable and dependable chartered town planner who prides himself on his local knowledge, attention to detail and relationships based on trust.

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