Executive summary

Underpinning the 2024 English Devolution White Paper is a conviction that bolstering sub-national institutions is a critical part of the national mission for economic growth while also addressing regional inequalities and delivering on the government’s house-building pledges.

Mott MacDonald has spoken to local government policymakers and our own experts, and presents here three core themes seen as the critical factors in delivering new and upgraded infrastructure to secure successful housing and place-based growth.

Theme 1: Reinvigorating the approach to delivering strategic growth and associated infrastructure to ensure it is fully coordinated at a city-regional or regional level

Key decisions about economic growth, housing and infrastructure need to take place at a regional level, responding to on-the-ground needs and addressing local concerns in order to deliver the new major infrastructure that will ultimately create successful places. We see an opportunity for a formal voice for new strategic authorities in the development of the 10-Year Infrastructure Strategy and in managing the pipeline embodied within it.

Two important trends are notable when it comes to infrastructure provision. First, there is a move towards greater densification driven by a desire for improved accessibility and lower carbon footprints. Second, there is much greater interest in non-transport infrastructure, including facilities for education and healthcare, water, digital connectivity and, particularly, nature and energy.

Mandating of Spatial Development Strategies (SDS) – via powers set out in the Planning and Infrastructure Bill – together together with new mayoral call-in powers is likely to be a powerful combination for securing the delivery of strategic infrastructure and unlocking major housing-led development. The introduction of mandatory consultation for Nationally Significant Infrastructure Projects by strategic authorities is a positive step forward for ensuring regional considerations are met by the nation’s largest transport projects. Meaningful, well-coordinated and sustained investment in high-quality local public transport and active travel infrastructure is also needed to support substantive modal shift.

Working alongside national bodies, regional mayors and authorities will have a crucial role in achieving net zero and delivering economic growth in England and across the UK. Devolution will give new powers to strategic authorities over their local and national energy systems across building retrofit, clean power and heat networks.

Theme 2: Simplifying and further devolving funding pots will enable more effective and targeted outcomes for local communities

Greater devolution of responsibilities, powers and funding around the major strategic infrastructure enablers will not only save time and money but also unlock and direct development.

The approach in which combined authorities and local authorities compete for pots of funding intended to achieve specific goals limits their ability to be strategic about the money needed to deliver long-term objectives.

Rolling out Integrated Settlements across mayoral strategic authorities will lead to greater local stability and certainty. They will allow mayoral strategic authorities to bring together funds in areas such as housing, transport, regeneration, skills and retrofit and move funding between years to meet investment commitments. This enables improved prioritisation based on local needs and a reduction in waste and inefficiency.

Stronger growth outcomes come from densification of existing places, yet the viability of brownfield land remains one of the biggest challenges to densification of towns and cities in the UK. Current funding support from government, which includes grant funding and commercial loans, is an important tool, but there is a broader need for innovative funding models to address viability gaps in brownfield development.

Theme 3: Greater powers bring greater responsibilities – and should bring greater resources

Devolving powers and funding requires the capacity and capability to deliver at a sub-national level, as well as clear governance and accountability. Specifically, areas with the lowest local tax base and most acute social need will need to be better supported to enable them to realise their full potential.

Enabling funding and broader on-going support from national government is likely to be necessary to support upskilling in local authorities if devolution is to be a success. Local authorities will need clear guidance on their statutory duties, particularly in how limited funds should be prioritised and, ultimately, will need long-term funding settlements to expand organisational capacity as well as deliver the required services.

Need for change

Devolution cannot simply add up to a change in management structures. It has to drive sustainable economic growth by harnessing housebuilding and investment in new and improved infrastructure across the board to create vibrant communities and places. It must also factor in new imperatives such as the drive for densification in urban areas to support stronger growth outcomes, a renewed focus on public transport and the need to integrate strategic energy issues into local area planning.

The government must be bold in its approach if it is to realise substantive change in the near term, recognising that this degree of reorganisation will require time and significant effort.