Devolution is reshaping the landscape of Local and central government promising to bring decision-making closer to the communities it serves.
In December 2024, the government published a groundbreaking paper outlining its approach to devolving power from Westminster to local authorities. This shift represents one of the most significant changes to local governance in decades.
But what does that mean in practice?
Understanding devolution: power to the people
Devolution is fundamentally about recognising that a rural farming community in Cornwall has different needs than a bustling metropolitan area in Manchester. Rather than applying one-size-fits-all solutions from centralised control in Westminster, local authorities will reorganise and gain powers and funding to address specific community challenges related to local needs.
Essentially, those closest to the problems are often best positioned to solve them. So why not give local authorities more decision-making powers? Alongside that, we expect to see increased funding across multiple domains, from transport and education through to healthcare and policing. While central government will maintain oversight, local areas will have significantly more autonomy to shape their own futures.
The great reorganisation: from district to unitary
To deliver effective devolution, the government has initiated Local Government Reorganisation (LGR) – a comprehensive restructuring of how local councils operate. The current two-tier system of county councils and district councils is being replaced with larger, more impactful unitary councils.
Take Hampshire as an example. The county currently has several district councils that will be consolidated into approximately four larger unitary authorities. These new entities will combine the responsibilities previously split between county and district levels, creating more cohesive governance structures capable of handling expanded powers.
This transformation extends beyond simple consolidation. The new unitary councils will operate under mayoral systems, introducing different electoral processes and governance structures. Each will serve large populations across wide geographic areas, requiring a new innovative approach to public service delivery.
Digital transformation: a golden opportunity
LGR presents a unique opportunity for digital transformation. Most councils currently operate with legacy systems that often don't communicate effectively. The creation of new unitary authorities offers a clean slate to build modern, integrated digital foundations.
The process of disaggregating existing systems and then reaggregating them provides the perfect moment to embrace:
- Scalable digital platforms that can grow with expanding responsibilities
- Integrated AI solutions to improve efficiency and service delivery
- Modern governance systems that support transparent decision-making
- Automation tools that help councils do more with potentially fewer resources
This isn't just about upgrading technology – it's about reimagining how public services can be delivered. For example, chatbots could handle routine inquiries, while more sophisticated AI could help with complex policy analysis and resource allocation.
Cross-domain impact
Devolution's reach extends across virtually every aspect of public life:
Education and skills
Local authorities will gain enhanced powers over education funding and skills training. This means apprenticeship programs can be tailored to local economic needs, and educational priorities can reflect regional opportunities and challenges.
Transport and infrastructure
Local transport decisions will increasingly be made at the local level, enabling authorities to develop integrated transport networks that serve their communities' specific needs.
Economic development
Expanded powers around trade and growth include opportunities for freeports and specialized economic zones.
Healthcare and social services
While the NHS remains centralised, local authorities will have greater influence over public health initiatives and social care integration, potentially creating more holistic, preventative community health approaches.
Housing and planning
Enhanced local control over housing policy means authorities can better address their specific housing challenges, whether that's rural affordable housing or urban place making and regeneration.
Looking ahead: better services, stronger communities
For residents, successful devolution promises more responsive, locally-tailored services. Transport networks that connect where people need to go. Skills training that leads to local job opportunities. Housing policies that reflect local market realities.
The new unitary authorities will have both greater responsibility and greater capability to address complex, interconnected challenges. A housing crisis may be about a lack of decent and affordable homes at a national level but at a local level this also impacts education, economic development, social services and how local transport services are delivered. Larger, more powerful local authorities can take holistic approaches that smaller, fragmented councils simply couldn't manage.
But success isn't guaranteed. The quality of digital foundations, governance structures, and change management will determine whether these new authorities fulfil their potential or struggle under expanded responsibilities.
Navigating the challenges
This scale of transformation isn't without it’s challenges. Councils must overcome:
- Legacy system integration across multiple previously separate organisations
- Cultural alignment as different council teams merge into different unified structures
- Process standardisation while maintaining service quality during transition so residents are not affected
- Stakeholder management across diverse communities and interest groups
- Resource optimisation to deliver expanded services potentially within tighter budgets
- Siloed thinking to allow for more agile and outcome-driven goals
The Transform opportunity
This massive reorganisation creates substantial opportunities for our Domains and Practices. For example:
- Strategic consultancy can support the fundamental decisions around governance structures, stakeholder management, and organisational design that will shape these new authorities for decades.
- Data & AI can both establish good data foundations, ensuring readiness for successful AI implementation, as well as the right set of tools to delivery more efficient services.
- Digital transformation expertise becomes crucial for councils needing to build integrated systems from scratch while maintaining service continuity.
- Our Research & Service Design practitioners can help reimagine public services for larger, more diverse populations while ensuring accessibility and user-centred approaches.
But the true beauty of this challenge, is the interdisciplinary nature. The most successful solutions will come from integrated approaches that weave together strategic, digital, and design expertise. Something Transform has significant experience in, with clients ranging from HMCTS to UKHSA.
The success of devolution will ultimately be measured by whether residents receive better, more responsive public services that truly meet local community needs. Transform is all in on helping reshape British local government for the 21st century. Let’s talk.