Devolution in England – what it means for construction

In December 2024, the UK government introduced the English Devolution White Paper, outlining a significant shift in governance. This plan aims to transfer powers from Westminster to local authorities, restructuring England’s government system: county and district councils – into single-tier authorities. The goal? Streamlined decision-making and greater efficiency.

Understanding devolution in England

Unlike Scotland, Wales, and Northern Ireland, which have their own parliaments and extensive devolved powers, England’s devolution remains regional, operating through:

• Metro Mayors & Combined Authorities – Covering major urban areas like Greater Manchester, West Midlands, and London, with control over transport, housing, economic development, and, in some areas, health and policing.
• Local councils – Responsible for local planning, education, transport, waste management, and social care.

Key devolution powers in England

The level of devolution varies across different regions, but key areas of power include:

• Transport – Control over local rail, bus networks, and cycling infrastructure.
• Housing and planning – Funding for affordable housing and infrastructure projects.
• Economic development – Business investment, skills training, and employment programs.
• Health and social care – Some areas, like Greater Manchester and London, have partial control over NHS budgets and services.

This means that rather than a single English Parliament, decision-making is distributed among regional leaders and councils, each with different levels of authority.

The impact on the construction industry

1. Local control over housing and infrastructure

The shift of housing and transport budgets to local leaders means:

• More regional development projects, especially in the North and Midlands.
• Potentially faster planning approvals, reducing delays for major construction projects.
• Increased urban regeneration efforts, focusing on brownfield development and city -centre revitalisation.

2. New business and contract opportunities

Devolution brings targeted regional funding, including:

• Investment in affordable housing, schools, and transport infrastructure.
• More funding for net-zero and sustainability-focused developments.

3. Regional differences in planning and regulation

With Metro Mayors setting localised policies, we’ll see:

• Stricter green building standards in some regions (e.g., Greater Manchester’s net-zero goals).
• Varying planning rules, requiring businesses to adapt to different regulatory landscapes.
• A shift in construction material choices based on sustainability regulations.

4. Unequal investment and growth across regions

While cities like Manchester, Birmingham, and Liverpool benefit from strong devolution deals, rural and less urbanised areas may receive less funding. Some councils will still rely on Westminster for infrastructure investments, leading to uneven development.

5. Skills, workforce and training challenges

With Metro Mayors controlling skills funding, the construction industry can expect:

• New apprenticeship programs to address labour shortages.
• Local hiring requirements in certain devolved regions.
• More tailored skills training programs, ensuring workers are equipped for modern construction needs.

Preparing for the future

The expansion of devolution in England marks a transformative shift for the construction industry. With more localised decision-making, we must engage with local mayors and councils to secure contracts whilst staying informed about regional policies that affect planning and sustainability standards. It will be even more important to adapt business strategies based on investment trends in different regions and leverage local training initiatives to secure skilled workers.

Final thought

Devolution isn’t just about governance — it’s about reshaping the economic and business landscape. For the construction industry, this means a new way of working, where success will depend on regional agility and strong local partnerships. Two things Tilbury Douglas prides itself on.