Devon’s future with a mayor comes into focus after Budget announcement
Plans for a mayor covering Devon have gained momentum following the Budget announcement, although the structure of a new mayoral authority and the timing of any election have yet to be confirmed
Devon’s hopes of securing a mayor have received a boost after the Government confirmed in the Budget that it is in the final stages of agreeing a new Mayoral Strategic Authority for the county.
Chancellor John Healey referenced a “new model” of government in his Budget speech in Parliament today (Wednesday, October 28), including mayors for various areas of England.
Devon has been named as one of 10 places with which the Government is nearing new devolution agreements.
This would mean a mayor covering the entire county.
A so-called mayoral strategic authority (MSA) would need to be created, with the mayor likely to act as a conduit for additional funding and have the ability to steer projects with a county-wide impact, such as major transport and housing plans.
Jim McMahon, Minister for Local Government, Devolution and Regional Growth, said: “This is a great deal for Devon, with Exeter at the economic heart of a new mayoral zone.
“Steve has been a great champion for sustainable economic and jobs growth, housing and better place-based services in Exeter, and today marks an important step forward for the city and the beginning of an exciting new chapter.”
Steve Race, MP for Exeter, also welcomed the announcement but said the make-up of the new authority would be crucial.
“Confirmation in the Budget that the whole geography of Devon is on the path to a new Mayoral Strategic Authority is very welcome,” he said.
“A new MSA will enable new powers and decision-making to be transferred out of Whitehall to our area, along with the funding that follows.
“It’s imperative that if we are to deliver on the promise of devolution, higher economic growth, more resilient transport, more coordinated new housing, that the authority is comprised of the right members.
“That’s why Exeter, as Devon’s economic driver and fastest growing city, must have full membership and voting rights on the new authority alongside Plymouth, Torbay, and Devon County Council.
“I welcome the Minister’s acknowledgement that Exeter’s role is crucial in this new chapter.”
Devon currently has a combined county authority (CCA), but it pursued a non-mayoral model when it was created.
It does not yet include Plymouth City Council, although the council is now seeking to join it.
It is not yet clear whether the CCA will be altered to become an MSA or whether an entirely new mayoral authority will be created.
Caroline Voaden, Liberal Democrat MP for South Devon, said the county was at “risk of missing out on major funding streams without having a mayor”.
“It’s been clear that the government is prioritising areas that have one [and] as things stood, Devon could have easily been left behind,” she said.
“So, we welcome this news, but I hope the government will listen to voices from across Devon about the wider devolution and local government picture.”
She added that she was “deeply frustrated” after Prime Minister Andy Burnham recently stated that he had spoken to Devon MPs about devolution in the county.
However, Ms Voaden said he had only spoken to Labour members in Plymouth and Exeter.
The announcement could prompt potential mayoral candidates to launch their campaigns.
However, no date for an election has been outlined.
The process of local government reorganisation in Devon has been paused. It would have seen the county’s 11 councils merged in various ways to create fewer, larger unitary-style councils by 2028.
With the process on hold, some local elections are now set to go ahead in May next year, potentially creating an opportunity for a mayoral election to be held at the same time.
Mayoral authorities were mentioned by Mr Healey as beneficiaries of various funding initiatives.
MSAs will be able to retain 20 per cent of business rates from April 2027, while £150 million will be made available to strategic authorities to help them manage their greater powers, fiscal devolution and Good Growth Funds.
Mayoral authorities will also be able to borrow from a new £1.5 billion Government fund, due to be created by April 2028, to support certain projects in their areas.
The Budget also set out an intention for local and regional government to retain 100 per cent of business rates income before the end of the decade, replacing grants from central government.
Moving to a mayoral model could be vital, particularly as the Local Government Association (LGA), which represents councils, said there had been “no overall funding increase for local government” in the Budget.
“This means councils will continue to struggle to meet demand and provide services to our communities,” the LGA said.
“Government recognises that councils are central to achieving good growth and rewiring the state.
“These ambitions cannot be achieved if council finances remain fragile and reliant on emergency bailout agreements.
“The full value of local government will only be unleashed if both local and strategic authorities are empowered and financially sustainable.
“Plans for real fiscal devolution must ensure investment decisions can better meet local needs.”