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Potential Devolution Shake-up: Ministries May Grant Local Mayors Authority Over Schools and Hospitals

Ministers are devising policies to empower mayors significantly, granting them greater control over public services, including hospitals and schools. Steve Reed, the Secretary for Local Government, aims to decentralize power further, potentially transferring certain NHS services and criminal justice responsibilities to local authorities. This policy aligns with the proposals published by the Labour Together think tank, which Reed co-founded, suggesting amendments to the ongoing devolution bill in parliament.

Reed expressed his commitment to community power, leveraging his experiences as a former council leader where he succeeded in reducing youth crime and improving social housing through local initiatives. The government’s mission, as articulated by Reed, is to transform the nation by empowering communities and restoring trust in politics.

Reed’s role at the Ministry of Housing, Communities, and Local Government (MHCLG) allows him to spearhead these devolution efforts, providing local leaders with the autonomy to manage their resources effectively and incentivizing them to seek new powers from the central government. The plan would involve a unilateral hand over of significant new powers to mayors through potential amendments to the devolution bill.

Supporters of the proposal argue that giving mayors control over hospitals and social care could lead to more efficient allocation of NHS funds towards community care, thus saving costs. Currently, governance over hospital funding lies with NHS integrated care boards, but the Labour Together report suggests that mayors should be empowered to appoint health commissioners to take charge instead.

ANDy Burnham, Mayor of Greater Manchester, exemplifies a regional leader with substantial influence, yet without complete control over his area’s health service budgets. Health Secretary Wes Streeting’s 10-year plan focuses on community-based healthcare and prevention but is hindered by the divide between national and local authority controls.

The Labour Together report advocates for extending mayors’ appointment powers to oversee other public services, such as regulating academy schools and managing probation services. The report emphasizes the importance of local governance in enhancing community engagement and accountability, suggesting that criminal justice initiatives could involve meaningful community service linked to the areas of offense.

Despite government support, the report also floated suggestions for further devolution, including a standardized formula for mayoral funding and the replacement of the House of Lords with regionally elected representatives, ideas not endorsed by the current administration.

While devolving power to mayors comes with the potential for improved service efficiency and community commitment, it also risks empowering political rivals and other party leaders. Recent elections have seen the rise of two Reform UK mayors, adding complexity to the government’s strategy.

Economist and former Bank of England chief Andy Haldane warned against any hesitation from the government in embracing devolution, citing the risks of undercutting their growth goals without full commitment to decentralization.

Source: https://www.theguardian.com/politics/2025/sep/22/ministers-could-give-mayors-control-of-schools-and-hospitals-in-devolution-shake-up

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