What are county deals?

County deals are a proposed mechanism to deliver sub-national devolution in England. They will involve ‘bespoke’ agreements between the UK government and local authorities in non-metropolitan parts of the country.

As part of these deals, specified powers will be transferred from central government to the local level. Boris Johnson announced in July 2021 that new devolution deals would be negotiated with county areas, arguing that there was “no reason why our great counties cannot benefit from the same powers we have devolved to city leaders”.[1]

The government has directed local authorities to bid for powers through county deals to help them to ‘level up’ their area by increasing economic productivity, improving local services, and undertaking new infrastructure projects. According to former communities secretary Robert Jenrick, “areas with the clearest, most innovative and readily deliverable proposals that support levelling up will be prioritised”.[2]

The government is expected to provide further detail on how county deals will work in its Levelling Up White Paper, due to be published this autumn, and at the Spending Review on 27 October.

What powers may be devolved as part of county deals?

The prime minister has explicitly referred to plans for county deals to devolve powers over adult skills, local infrastructure projects, and transport systems such as bus routes.[3] Past devolution settlements in metropolitan areas have routinely included these elements, as well as powers over other forms of integrated transport, business support, planning and land use, alongside a 30-year investment fund of between £15-38 million annually.[4] Some deals with metropolitan areas have included more extensive powers over health, housing and policing.

The government has made clear that if local authorities want to achieve county deals with ambitious devolved powers, they must propose correspondingly ambitious reforms to local governance structures.

Will county deals make additional funds available to local authorities in county areas?

In previous devolution deals, such as those which agreed the creation of mayoral metropolitan combined authorities, the UK government provided additional funding for long-term investment projects. This extra funding was crucial in persuading many councils to sign off the deals.

However, ministers have not yet made any explicit promises of additional funding as part of this round of devolution deals. County deals could instead grant local areas greater flexibility over how to use existing funding streams, rather than additional resources from the Treasury.

Why have most county areas been excluded from the English devolution process until now?

Previous rounds of devolution deals, agreed by the coalition and Conservative governments since 2014, focused on transferring powers and budgets from Whitehall to metropolitan city regions.

The first devolution deal in England was concluded in 2014 by the coalition government with local authorities from the Greater Manchester area, and since then eight further devolution deals have been agreed with local leaders in ‘city regions’ across England. These nine deals have all included the formation of a combined authority headed by a directly elected ‘metro mayor’.

Two county areas – Northumberland (a unitary council) and Cambridgeshire (a county council) – have been included in devolution deals centred on the cities of Newcastle and Cambridge. Cornwall, a county area administered by a unitary authority, agreed a more limited rural devolution deal without a mayor.

23 county councils, as well as a number of unitary authorities covering county areas, have not yet agreed devolution deals.[5]

What regions could be covered by county deals?

The government has indicated that proposed county deals should operate across “a sensible economic geography of a suitable scale and one based on local identity,”[6] but it has not set out a framework to define these criteria. However, it has specified that deals will be struck with upper-tier authorities and has suggested that the geographic footprint of a county deal could encompass:

  • A county council and its district councils
  • A county council and neighbouring unitary authorities, working with district councils where appropriate
  • A single, geographically large unitary authority
  • A combination of two or more unitary authorities which share a recognisable local identity.

Local authorities will be allowed to propose the footprint of their own county deals. However, the government has specified that any proposed geography must not isolate neighbouring areas and thereby prevent them from accessing devolution opportunities.[7]

Will all areas have a county deal?

The 2019 Conservative party manifesto promised “full devolution across England”.[8] However, in line with how earlier deals were implemented, it appears unlikely that the UK government will impose county devolution on local areas.

The government is instead negotiating with local leaders on a place-by-place basis, following bids initiated by councils themselves. In previous rounds of devolution deals, many local authorities either declined to submit a bid for a deal or were unsuccessful in securing an agreement. If county deals follow a similar ‘bespoke’, locally-led approach, it seems likely that the current patchwork arrangement of sub-national devolution in England will continue.

Many counties have expressed an interest in agreeing county deals, including Surrey, Hertfordshire, Hampshire and Norfolk County Councils.[9] Other areas, such as Oxfordshire, intend to wait until the government publishes further details before deciding whether to submit a bid.[10]

Former local government minister Luke Hall confirmed to council leaders that the government would initially select a small group of proposals to run as “pilot deals”.[11] These deals are expected to be announced before the end of 2021.

How are county deals being negotiated?

There is limited information in the public domain about the process for negotiating county deals.

On 15 July 2021, Robert Jenrick, wrote to local authority leaders and mayors setting out the government’s plans for county deals and asking local authorities to come forward with proposals. The initial deadline for expressing interest was 13 August.[12]

Past negotiations over devolution deals have taken place behind closed doors through bilateral talks between leaders of local councils and the UK government, with deals ratified in a vote by local councillors.[13] The deals were formally implemented by the passage of secondary legislation in Parliament, under the Cities and Local Government Devolution Act 2016.[14]

Will county deals lead to the creation of ‘county mayors’?

The government has suggested that county deals could strengthen local leadership by establishing elected mayors to provide a single point of accountability. The government argues that a directly elected leader could become a “champion for their area”.[15]  

However, an elected mayor is not necessarily a requirement for achieving a county deal.[16] The government has signalled that it will consider ”other governance proposals that increase stability and strengthen local leadership”.[17] The government has not yet set out which alternative accountability structures it will accept, instead inviting local authorities to suggest their own plans for governance.

East Riding and Hull City Councils have indicated their preference for forming a combined authority without an elected mayor as part of their ongoing devolution negotiations,[18] while other county councils have reported that they may propose reorganising as unitary authorities in order to access devolved powers without adopting a directly elected mayor.[19] It is possible that existing unitary authorities in county areas could also be granted devolved powers without adopting the mayoral model. This would follow the framework of Cornwall’s 2015 devolution deal.

Flexibility could prove crucial. In previous rounds of devolution negotiations, the government’s insistence that deals must include a directly elected mayor led to the collapse of several deals. Hampshire County Council stated in 2016, for instance, that it did “not see [a mayor] as the right model for a large, diverse and extensively rural area such as Hampshire and the Isle of Wight”’.[20]

In October 2021, a survey by the County Council Network found that just three county leaders of 28 respondents favoured a directly elected mayor.

 

  1. Johnson B, ‘The prime minister’s levelling up speech: 15 July 2021’, retrieved 30 September 2021, www.gov.uk/government/speeches/the-prime-ministers-levelling-up-speech-15-july-2021
  2. Letter from Robert Jenrick to Local Authority Leaders and Chief Executives and Mayors’, 15 July 2021, www.emcouncils.gov.uk/write/150721_SoS_MHCLG_letter_-_County_Deals.pdf
  3. Johnson B, ‘The prime minister’s levelling up speech: 15 July 2021’, retrieved 30 September 2021, www.gov.uk/government/speeches/the-prime-ministers-levelling-up-speech-15-july-2021
  4. Sandford M, ‘Devolution to local government in England’, House of Commons Library, Briefing Paper 07029, 26 March 2020, https://researchbriefings.files.parliament.uk/documents/SN07029/SN07029.pdf
  5. In April 2019, there were 26 county councils according to data published on Gov.uk. Since then, Buckinghamshire County Council has unitarised and Northamptonshire County Council has split into two unitary authorities. There are therefore 24 remaining county councils of which one, Cambridgeshire, is part of an existing devolution deal. Source: Ministry of Housing, Communities and Local Government, ‘Local government structure and elections’, 3 April 2019, retrieved 5 October 2021, www.gov.uk/guidance/local-government-structure-and-elections
  6. Letter from Robert Jenrick to Local Authority Leaders and Chief Executives and Mayors’, 15 July 2021, www.emcouncils.gov.uk/write/150721_SoS_MHCLG_letter_-_County_Deals.pdf
  7. Hill J, ‘More deals of county deals criteria emerge’, Local Government Chronicle, 4 August 2021, retrieved 30 September 2021, www.lgcplus.com/politics/devolution-and-economic-growth/more-details-of-county-deals-criteria-emerge-04-08-2021/
  8. ‘Get Brexit Done’, Conservative Party Manifesto, 2019, p. 29, https://assets-global.website-files.com/5da42e2cae7ebd3f8bde353c/5dda924905da587992a064ba_Conservative%202019%20Manifesto.pdf
  9. Knott J, ‘Revealed: more councils bid for county devo talks’, Local Government Chronicle, 18 August 2021, retrieved 4 October 2021, https://www.lgcplus.com/politics/devolution-and-economic-growth/revealed-more-councils-bid-for-county-devo-talks-18-08-2021/; Price D, ‘Hertforshire bids to be one of Government’s ‘County Deals’, Watford Observer, 13 September 2021, retrieved 30 September 2021, www.watfordobserver.co.uk/news/19575734.hertfordshire-bids-one-governments-county-deals/; George D, ‘Hampshire County Council submits bid for inclusion in ‘county deals’ pilot, The Portsmouth News, 17 August 2021, retrieved 30 September 2021, www.portsmouth.co.uk/news/politics/hampshire-county-council-submits-bid-for-inclusion-in-county-deals-pilot-3348992; Kenyon M, ‘Norfolk expresses interest in county deal as others wait’, Local Government Chronicle, 24 August 2021, retrieved 30 September 2021, www.lgcplus.com/politics/devolution-and-economic-growth/norfolk-expresses-interest-in-county-deal-24-08-2021/
  10. Smulian M, ‘Areas hold back on county deal plans ahead of white paper’, Local Government Chronicle, 30 September 2021, retrieved 4 October 2021, www.lgcplus.com/politics/devolution-and-economic-growth/areas-hold-back-on-county-deal-plans-ahead-of-white-paper-30-09-2021/
  11. Hill J, ‘More deals of county deals criteria emerge’, Local Government Chronicle, 4 August 2021, retrieved 30 September 2021, www.lgcplus.com/politics/devolution-and-economic-growth/more-details-of-county-deals-criteria-emerge-04-08-2021/
  12. Knott J, Hill J, Kenyon M and Smulian M, ‘LGC map reveals emerging devolution plans’, Local Government Chronicle, 14 September 2021, retrieved 30 September 2021, www.lgcplus.com/politics/governance-and-structure/opening-pandoras-box-emerging-devolution-plans-revealed-14-09-2021/
  13. Sandford M, ‘Devolution to local government in England’, House of Commons Library, Briefing Paper 07029, 26 March 2020, https://researchbriefings.files.parliament.uk/documents/SN07029/SN07029.pdf
  14. Cities and Local Government Devolution Act 2016, c.1, www.legislation.gov.uk/ukpga/2016/1/notes/division/6/index.htm ; Sandford M, ‘Devolution to local government in England’, House of Commons Library, Briefing Paper 07029, 26 March 2020, p.17, https://researchbriefings.files.parliament.uk/documents/SN07029/SN07029.pdf ; Ministry of Housing, Communities and Local Government, ‘Secretary of State’s Annual Report on Devolution 2019-20’ https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/969199/CM_Devolution_2019-20_for…
  15. Letter from Robert Jenrick to Local Authority Leaders and Chief Executives and Mayors’, 15 July 2021, www.emcouncils.gov.uk/write/150721_SoS_MHCLG_letter_-_County_Deals.pdf
  16. Knott J, ‘Revealed: more councils bid for county devo talks’, Local Government Chronicle, 18 August 2021, retrieved 30 September 2021, www.lgcplus.com/politics/devolution-and-economic-growth/revealed-more-councils-bid-for-county-devo-talks-18-08-2021/
  17. Letter from Robert Jenrick to Local Authority Leaders and Chief Executives and Mayors’, 15 July 2021, www.emcouncils.gov.uk/write/150721_SoS_MHCLG_letter_-_County_Deals.pdf
  18. Young A, ‘Hull and East Riding councils shelve elected mayor idea as they continue to press for devolution deal’, Hull Live, 21 September 2021, retrieved 5 October 2021, https://www.hulldailymail.co.uk/news/hull-east-yorkshire-news/hull-east-riding-councils-shelve-5943944
  19. Knott J, ‘Revealed: more councils bid for county devo talks’, Local Government Chronicle, 18 August 2021, retrieved 5 October 2021, www.lgcplus.com/politics/devolution-and-economic-growth/revealed-more-councils-bid-for-county-devo-talks-18-08-2021/
  20. Franklin J, ‘’We don’t want a mayor here’ say council leaders’, Southern Daily Echo, 15 February 2016, retrieved 30 September 2021, www.dailyecho.co.uk/news/politics/14277197.we-dont-want-a-mayor-here-say-council-leaders/
Update date: 
Wednesday, October 13, 2021

Original source – The Institute for Government

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