I have long been a supporter of greater devolution in the UK, I supported Labour Party policy in the 90s driven by John Prescott for Regional Assemblies. The UK is one of the most centralised economic and democratic countries in the world and it is not a good thing!
Since the formation of the Northern Powerhouse and the West Midlands Mayoralties (+several others over the last few years) the drive has accelerated. There is a long story to be told about why Leicestershire isn’t part of the East Midlands Combined authority under Mayor Claire Ward, but that can be told another day.
As of January 2025 we have new impetus. The Labour government want to accelerate the devolution agenda and once again Leicester and Leicestershire want to find a solution. The two main councils have adopted semi formal positions and the Districts and Rutland have responded. So what do we think?
Exploring the Implications of Government Devolution Plans for Leicestershire
The UK government’s ongoing commitment to devolution aims to transfer powers and funding from national to local authorities, fostering more responsive and efficient governance. In this context, Leicestershire is poised to experience significant changes that could reshape its administrative landscape, economic development, and community engagement.
Understanding Devolution in England
Devolution in England involves delegating decision-making authority to local governments, enabling them to tailor policies to regional needs. As of June 2024, devolution covers 48% of England’s population and 54% of its economic output. If planned expansions proceed, these figures are expected to rise to 64% and 67%, respectively, by 2025, indicating a substantial shift towards localized governance.
Proposed Changes in Leicestershire
Recent proposals suggest expanding Leicester City’s boundaries into surrounding districts, a move that would significantly alter local governance structures. Leicestershire County Council has responded by requesting the government postpone the elections planned for May 2025 until May 2026, indicating the need for careful consideration and planning in light of potential reorganization.
Perspectives from Local Authorities
• Leicester City Council: Advocates for boundary expansion, citing potential benefits such as streamlined services and enhanced economic alignment between urban and suburban areas.
• Leicestershire County Council: Expresses concerns about the disruption to established structures and the complexities involved in managing such a transition.
• District Council Leaders: Emphasize the importance of preserving local representation and ensuring that residents’ voices are integral to the decision-making process.
Implications for Businesses and the Regional Economy
The business community in Leicestershire is keenly observing these developments, considering potential impacts such as:
• Simplified Bureaucracy: A unified governance structure could reduce administrative hurdles for businesses operating across current city and county lines.
• Attraction of Investment: Larger urban areas with consolidated resources may become more appealing to national and international investors.
• Improved Infrastructure Planning: Integrated planning could lead to more cohesive development of transport, housing, and commercial spaces, fostering a conducive environment for business growth.
Evidence from Other Regions
Experiences from other regions with devolution agreements provide valuable insights. For instance, Greater Manchester’s devolution model has demonstrated tangible economic benefits, with enhanced regional collaboration driving both investment and job creation. This suggests that, with careful implementation, similar outcomes could be achievable in Leicestershire.
Challenges and Considerations
While the potential benefits are significant, challenges remain:
• Community Engagement: Ensuring that local communities are actively involved in the decision-making process is crucial for the legitimacy and success of devolution initiatives.
• Governance Structures: Establishing clear and effective governance frameworks is essential to manage the transition and ongoing administration efficiently.
• Financial Arrangements: Updating funding allocations to reflect the new governance structures is vital to ensure financial sustainability and equitable resource distribution.
Conclusion
The proposed devolution plans for Leicestershire present both opportunities and challenges. By drawing on insights from the Institute for Government and experiences from other regions, local authorities, businesses, and communities can collaboratively navigate this transition. Engaging all stakeholders in meaningful dialogue will be essential to harness the potential benefits of devolution, ensuring that the restructuring leads to enhanced governance, economic growth, and improved quality of life for all residents.