Strengthening the sector through devolution
The LGA recognises that the current time represents a potentially pivotal moment for local government.
The Government’s commitment to strengthening the sector through the devolution of powers and funding presents a genuinely exceptional opportunity to capitalise on the sector’s strengths and capabilities.
We are in no doubt that an empowered, financially sustainable local government sector offers huge potential, both to meet the needs of local residents and for government to deliver key national objectives.
Our submission to the 2026 Autumn Budget is in the context of this environment.
The Government has set out an ambitious ‘Rewiring the State’ agenda to deliver “good growth in every part of the UK, with places able to set their own ambitions and integrate services to meet people’s needs”.
These objectives are to be delivered “by a fundamental rewiring of the way our country works”, returning power from Westminster and Whitehall to people and places.
The Government has begun to set out a plan to implement its devolution agenda, with strategic authorities very much the focal point.
This includes ensuring all areas in England are covered by a strategic authority by April 2028, alongside a commitment to transfer powers over skills, employment support, transport, housing, innovation and public services, and a share of income tax, to these authorities.
We welcome this commitment to supporting meaningful devolution across England.
As part of this, it is essential that councils – the constituent bodies of strategic authorities – have access to the powers and funding they need both to deliver vital services for local residents and to work with strategic authorities to further drive growth.
The full value of the local government sector will only be realised if both strategic and local authorities are empowered and financially sustainable.
In particular, a financially vulnerable or failing council sector risks undermining the value and contribution of strategic authorities.
It is encouraging that the Government has recognised that “strategic authorities are only as strong as the local authorities that constitute them” and has committed to a reform programme to support the financial sustainability of councils.
The LGA strongly supports this proposal and is keen to work with Government to ensure councils are financially sustainable.
Ultimately, the Government’s plans to drive inclusive growth and integrate services locally rely on two key objectives being met:
- the creation of a financially sustainable local government sector, with the current financial pressures faced by councils, in particular, being addressed.
- effective collaboration in strategy and delivery between councils and an empowered body of strategic authorities.
In our Budget submission we set out the steps government needs to take to meet these objectives, and the role the local government sector can play to ensure they are delivered.
We focus on three themes: securing financial sustainability; capitalising on the potential of devolution; and risks and opportunities in key service areas, focusing on inclusive growth and place-based services, care and health, and children and young people.
We also set out the LGA’s sector-led improvement offer, and identify the steps government should take to capitalise on the contribution the LGA can make to support local government and deliver national agendas.
- The LGA’s Budget submission will be available on its website, in due course.