Government devolution in England

England remains one of the most centralised countries in the developed world. Local councils have limited control over finances, policymaking and overall flexibility, restricting their ability to respond effectively locally.

In response, a recent government whitepaper has outlined plans for devolution across England, aiming to increase growth. This strategy aims to shift power from Westminster to local authorities, combining existing councils to form new unitary authorities and establish additional mayoral authorities. This would decentralise power, granting more regional power in several areas, such as housing, skills, local transport, and employment support.  

The benefits of devolution

Devolution in England would help to foster greater collaboration for action in local areas. Bringing together local leaders enables a more strategic approach, combining community-specific knowledge and long-term vision.

Empowering local leaders through devolution at a strategic scale has been linked to higher productivity, allowing them to solve more issues, better serve their communities and contribute to the country's growth. It ensures that communities have a stronger voice in decisions that directly impact them. Additionally, devolution can encourage innovation, allowing leaders to experiment with new approaches and learn from them based on experience.  

The outcomes of devolution

While the potential benefits are clear, devolution is not without its challenges. Widening regional inequalities could arise, as some areas may benefit more than others, leading to disparities in funding and opportunities. With inequalities in funding, some regions may face shortfalls that impact their ability to implement necessary changes.

Governance complexity is another concern, as integrating councils and restructuring authorities could make local government harder to navigate. Furthermore, many councils will need to integrate outdated systems, particularly in areas such as Enterprise Resource Planning (ERP), which can be costly and difficult to scale.

Lessons from past failures

In recent years, some councils have faced failures that left some bankrupt; the integration of councils could exacerbate this. 

These failures highlight the risks of poor planning and execution. Birmingham City Council serves as an example. In 2022, they attempted to implement a new cloud-based ERP system to streamline operations. However, within six months, they encountered over 8,000 issues. What began as a £19 million project surged to more than five times the initial budget.

Key reasons for failure can include:

• Their old solution was embedded in their systems and hadn’t been updated in some time, resulting in a struggle with the large-scale transformation
• The new system failed to perform essential functions that were supposed to be automated
• It moved to a highly customised version of the ERP system, which increased the project's complexity - the more customisation there is, the riskier it becomes as it moves further away from the standard
• It was underestimated how much work would be required to implement the new ERP system in the way that they needed
• The new system also required additional skills, and training which hadn’t been provided

Like Birmingham’s ERP project, large-scale ERP failures highlight the risks of complex and costly solutions. Successful devolution will require scalable, adaptable systems capable of managing the increasing complexity of local governance.

A smarter approach to digital transformation

Digital transformation is still crucial for local authorities, as embracing these solutions can help with budget pressures and provide a fresh perspective, especially with upcoming changes.  

We provide scalable, intuitive solutions that can help simplify devolution and help local authorities navigate change. Our solutions are easy to implement without requiring different platforms for management and employees; they are more scalable with the ability to be flexible to adapt to the growing council, allowing seamless integration across departments.  

With over 53% of UK local authorities and 70% of local government employees using MHR platforms, we have a proven track record of helping councils transition smoothly. Watford Borough Council and Three Rivers District Council, for example, successfully streamlined HR and payroll operations through our solutions, reducing administrative burdens and improving efficiency. Our technology is designed to be flexible and user-friendly, requiring minimal training while offering personalised support and specialised focus in a cost-effective manner. As councils embrace devolution, MHR’s solutions help them stay agile, efficient, and ready for the future.

Discover more about our intuitive people and finance platform, People First.