Government sets 2027 deadline for introduction of strategic authorities

Devolution should be underway in Leicester, Leicestershire and Rutland by the end of 2027, Government has said. 

The recently published Rewiring the State statement, sets out a national plan to shift power, funding and responsibility from Whitehall to local leaders across England. 

Rewiring the State is Government’s overall plan to change how the UK is governed by moving power, funding and accountability out of Whitehall and into local hands. It sets out a new model of government where elected mayors, strategic authorities and local councils take more of the key decisions about economic growth, public services and local tax revenues, instead of central departments.

Its vision includes:

• Every part of England establishing a strategic authority by the end of 2027 - with full coverage in place by the end of 2028.

• A presumption in favour of Devolution, powers and functions should sit locally unless there is a clear case for keeping them at national level.

• A strong preference for directly elected mayors, which it describes as the “strongest form of governance” meaning the widest suite of devolved powers being made available to areas with elected mayors.

For areas not ready to adopt a mayor immediately, the statement promises support to create Foundation Strategic Authorities (FSAs) with enhanced powers, such as introducing an Overnight Visitor Levy, as a stepping stone on the way to fuller Devolution.

In practical terms, the announcement commits to a major transfer of powers and functions from central government to local leaders across England. It will overhaul how regional government is funded by giving mayors shares of business rates and income tax and strengthening local institutions and accountability so they can use increased powers effectively. 

Devolution and LGR

The Devolution agenda is about transferring powers over growth, public services and local tax revenues to strategic authorities and, where chosen, mayors. 

Local government reorganisation, by contrast, is about how councils are structured locally. In county areas, the Government is replacing the current two‑tier system  - county plus districts and boroughs - with larger unitary councils that deliver all main council services. 

LGR does not automatically decide whether an area has a mayor or the exact shape of a devolution deal, though Government says it has been designed to help areas “prepare” for those choices.

For Leicester, Leicestershire and Rutland (LLR), the Government has now confirmed that from April 2028 there will be two new unitary councils.

The decision includes the expansion of the city boundary meaning there will be one unitary council that will cover Leicester, Oadby and Wigston and parts of Blaby, Charnwood and Harborough.

The other will cover the remaining areas of Leicestershire and all of Rutland.

What happens next?

Once the two unitary councils are in place, it is expected LLR will then decide how it wants to engage with devolution. 

Local leaders will need to choose whether to pursue a mayoral model, with a strategic authority led by a directly elected mayor and access to the full suite of devolved powers or opt for a non‑mayoral foundation strategic authority (FSA) with a more limited set of powers.

In other words, LGR sets the map and structures, devolution determines what powers and funding sit on top of those structures.

The statement confirms that every area in England is expected to have either created, or be in the process of creating, a strategic authority by the end of 2027, with full coverage across the country by 2028. 

It makes clear that whether to have a mayor or not will be decided by areas, but also stresses that directly elected mayors are seen as the strongest model of governance and will therefore come with a broader package of powers. 

For places that are not yet ready to move to a mayoral model, the government plans to support the creation of FSAs.