Skip to content

The English Devolution and Community Empowerment Act 2026 – Frequently Asked Questions

The English Devolution and Community Empowerment Act 2026 has received Royal Assent and entered into law, bringing into effect what Angela Rayner MP has described as a "new dawn of regional power".

In this article, Alexander Rose and Abigail McAllister answer frequently asked questions about the English Devolution and Community Empowerment Act 2026.

Is the English Devolution and Community Empowerment Act 2026 genuinely going to change how regeneration is delivered in English?

Yes, for once the hype is justified. The Act does mark a meaningful change in how regeneration initiatives in England will be delivered in the coming months and years.

One third of the Act (Parts 1 and 2) is directed towards initiatives that aim “to speed up, widen and deepen devolution”. In particular, the Act creates  three types of strategic authorities (foundation strategic authorities, mayoral strategic authorities and established mayoral strategic authorities) and the category of strategic authority will determine the extent of the decision making powers and funds available. As a result, there will be a direct link between the performance of the strategic authority’s ability to deliver on time and in line with their legal requirements and the funds and powers available to an area.

For example, an established mayoral strategic authority such as West Midlands Combined Authority will be able to benefit from powers over local economic development, regeneration, housing, strategic planning, transport, local infrastructure, skills, employment support, health services and public safety.

Section 53 of the Act sets out the ‘right to request’ under which an ‘established mayoral strategic authority’ will be able to request changes to the law and their funding arrangements (which are the subject of multi-year integrated funding settlements),  where this will help them deliver against their areas of competence. In contrast a foundation strategic authority will have access to fewer funds and powers.

Alongside this structure, the Act establishes a ‘devolution framework’ designed to deliver the strategic authority model to all parts of England. Measures are proposed to make it quicker and easier to establish a strategic authority.

Part 4 of the Act contains extensive provisions relating to the auditing of strategic authorities. This is unsurprising – it seems sensible that in return for the transfer of new powers and funds, recipient authorities will sign up to an audit regime akin to that of central government. A core element of this regime will be the creation of the Local Audit Office, which will oversee “the effective operation of the system of audit” including co-ordinating the auditing of over 500 local public authorities. It is not yet known whether this will include spot checks to ensure that subsidy control and public procurement requirements are met when public funding is used. Where material and sustained non-compliance is identified, a strategic authority could conceivably be re-categorised, thereby losing funds and powers.

The English Devolution and Community Empowerment Act 2026 also contains a controversial local government reorganisation element with district councils in areas such as Essex, Kent, Surrey, Hertfordshire, Norfolk and Suffolk replaced with unitary authorities (thereby reversing the two-tier structure brought in by the Local Government Act 1974).

Section 67 of the Act sees the introduction of a “community right to buy” which will replace the current community right to bid policy introduced in the Localism Act 2011. This will create a right of first refusal, granting community groups greater powers to purchase assets of community value at a negotiated or market value price within a moratorium period from the point of listing for sale. The Act also defines a new type of asset of community value, the “sporting asset of community value” offering opportunities for sports clubs and communities to take on the freehold of locally important grounds and facilities, thereby protecting them from being lost.

What is an Established Mayoral Strategic Authority?

An “Established Mayoral Strategic Authority” (EMSA) is the highest tier of devolved regional government under the English Devolution and Community Empowerment Act 2026.

These organisations benefit from the most funds and powers under the Act’s standardised three-tier devolution framework, including:

  • transport and local infrastructure
  • skills and employment support
  • housing and strategic planning
  • economic development and regeneration
  • environment and climate change
  • health, well-being and public service reform
  • public safety

There are currently seven organisations with EMSA status, these being:

  • Greater Manchester Combined Authority (GMCA)
  • West Midlands Combined Authority (WMCA)
  • Liverpool City Region Combined Authority (LCRCA)
  • North East Mayoral Strategic Authority (NE MSA)
  • South Yorkshire Mayoral Combined Authority (SYMCA)
  • West Yorkshire Combined Authority (WYCA)
  • Greater London Authority[1] (GLA)

What is an Integrated Settlement?

An Integrated Settlement is a single, multi-year funding block granted by central government directly to an Established Mayoral Strategic Authority. This can be used, at the discretion of the EMSA, towards projects which fall within its range of functions and which advance its objectives.

For example Liverpool City Region has received £1.5bn for the three financial years 2026/27 to 2029/30.  This is made up of Capital Funding (CDEL) of £1.1 billion and Revenue Funding (RDEL) of £417m.

Stay up to date with:

  • Trending Topics
  • Latest Insights
  • Upcoming Events
  • Company Updates

What is a Mayoral Strategic Authority?

All existing mayoral combined authorities and mayoral combined county authorities are automatically classified as Mayoral Strategic Authorities (MSAs) (unless they are selected to become EMSAs having demonstrated the necessary governance, delivery and compliance credentials).

Funding for MSAs will be determined through periodic spending reviews covering areas such as local growth, place, housing and regeneration, non-apprenticeship adult skills, and transport.

What is a Foundation Strategic Authority?

All existing non-mayoral combined authorities and combined county authorities now fall into this category. Their allocated funding will be decided by formula base mechanisms and they will likely receive a lower investment.

What is the right to request process?

As set out above, under Section 53 of the Act, EMSAs have the right to formally propose additional devolved powers on an annual basis. These requests will be discussed at the Mayoral Council, which comprises government ministers, the Mayor of London, and combined authority mayors. The government is under a legal duty to respond to them, and can add new powers by statutory instrument. This ensures that such requests are actively engaged with and not ignored.

This mechanism reflects an important shift by treating devolution as an ongoing and evolving process capable of gradual expansion over time rather than as a one-off negotiated settlement. This gives established authorities an ongoing role in shaping the future direction of English devolution rather than simply operating within powers already conferred by Parliament.

It is, however, important to note that there is no obligation for new powers to be granted and so it will await to be seen whether this provides a meaningful avenue to gain additional powers.

Conclusion

The English Devolution and Community Empowerment Act 2026 is the start of a new phase of devolution, one based upon a coherent and objective framework that prioritises accountability and compliance, rewarding the organisations that demonstrate good governance with greater funds and powers.  Whether the Act will be a “new dawn” for regional power will depend less on the existence of statutory powers and more on how effectively those powers are exercised in practice. However there’s plenty of reasons for optimism.

Ward Hadaway has a market leading Public Funding team, with members regularly cited as being leading individuals in the UK for legal advice relating to subsidy control compliance and the financing of major regeneration projects. Whether you are a Mayoral Strategic Authority overseeing a new funding programme, a council looking to deliver an important project or a blue-chip business wanting to securing a grant, please do get in touch.

[1] •designated due to its existing legislative framework

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.

Follow us on LinkedIn

Keep up to date with all the latest updates and insights from our expert team

Take me there