Chamber urges government to reverse devolution decision and commit to preset timetables
Greater Birmingham Chambers of Commerce (GBCC) is urging the government to reverse its decision in delaying the Devolution Priority Programme and commit unequivocally to the timetables already set out.
This is one of two policy recommendations brought forward, alongside forming key stakeholder forums with regular updates on the development of future new authorities.
It follows the government's announcement of delaying elections for mayors in new authorities in Greater Essex, Norfolk and Suffolk, Hampshire & the Solent, and Sussex and Brighton.
These elections were supposed to take place in May 2026 but will now be held in May 2028 after the government argued that this was necessary to allow more time for Local Government Reorganisation.
The government has also indicated that it will agree to postpone some local elections in 2026 if councils request a delay.
Commenting on this decision, GBCC senior policy advisor Dr Ruth Fleet (pictured), said: “Successful devolution of power has proven to enable economic growth, while delay and indecision can only harm business confidence and damage regional equality.
“Devolution has the potential to deliver more regional equality in a way that previous grants and government packages have failed to do because it allows self-determination for local people on how to best invest in their own communities.”
The GBCC has also been conducting a research project - the Staffordshire Gateway Growth Panel – to develop clear policy recommendations to ensure a successful transition to the new authority or authorities in Staffordshire and to support economic growth in the region.
The launch of the report will take place on Friday, 27 March.
Further devolution of power, including the award of Integrated Settlements in April 2025, has given Mayoral Strategic Authorities (MSAs) more strategic control over funding from national government.
As a result, MSAs have been able to deliver longâterm strategic planning in areas such as skills, housing, transport and infrastructure.
Ruth continued: “MSAs are now central to the government’s plans for economic growth.
“Successive governments have driven funding through the MSAs, which represent around 41 per cent of the UK population, using them as a vehicle to stimulate growth and revitalise former industrial powerhouses.
“Slowing further devolution of power regionally can only hold back local authorities in England outside of MSAs from working strategically towards economic growth.”
Ruth also warned about a ‘postcode lottery’ when receiving funding and mentioned the potential of devolution to deliver more regional equality for councils – driven by self-determination on how to best invest in their own communities
She said: “Around 41 per cent of the country currently sits under an MSA and are receiving £13 billion of funding: around £3.70 is spent per person in MSA areas, while those outside of Combined Authorities will receive only £1 of funding.
“Businesses are already facing a postcode lottery when it comes to seeking funding from local authorities and the loss of UKSPF looks as though it will cause further divisions between the availability of support for different communities.
“These regional inequalities can only be exacerbated by further delay to devolved funding via MSAs.
“The dual process of LGR and devolution running alongside one another only makes sense if the processes are quick. Merging different functions in local authorities has been touted by the government as a way to improve efficiency and public services, avoid waste, and ensure clear accountability regionally.
“However, if devolution is not prioritised, the government risks achieving the opposite of its goal by creating uncertainty around where power lies regionally.”
Click here to read the full blog written by Dr Ruth Fleet on why delaying devolution risks business confidence, regional equality and economic growth.
