“Local government stands ready to deliver”

Posted on July 31, 2026

Ahead of the Prime Minister's devolution announcement, SIGOMA Chair, Mayor Chris Cooke, has set out why reform must keep councils at the heart of decision-making and give local areas the tools, resources and flexibility to respond to local priorities.

The Prime Minister's plan for devolution is highly anticipated by councils across the country. For too long, local leaders have been asked to solve national problems with one hand tied behind their backs. Decisions affecting communities across England have too often been made in Westminster, far removed from the people and places they impact. Greater devolution offers the opportunity to change that.

But devolution cannot simply be about transferring responsibilities. It must also mean transferring the resources, powers, and flexibility needed to deliver better outcomes.

As Mayor of Middlesbrough and Chair of SIGOMA, which represents 50 of England’s most deprived urban areas, I welcome moves that put more trust in local leaders. We know our communities. We understand the challenges they face. And we are best placed to decide how public money can be used to improve lives.

The crucial question is not whether councils and mayors can do more. It is whether Government is willing to provide the long-term funding needed to make reform a reality.

That challenge has never been more pressing. Despite recent improvements through the Government's multi-year settlement, councils across England remain under immense financial pressure. The Local Government Association recently warned that councils face a £7 billion funding gap by 2028/29, driven by growing demand for social care, children's services, homelessness support, and Special Educational Needs provision. The organisation estimates councils will need around 22% more funding simply to maintain current service levels over the next three years.

The strain is already visible. This year, 36 councils required Exceptional Financial Support from Government to balance their budgets, highlighting just how fragile local government finances have become.

For councils serving areas with higher levels of deprivation, these pressures are even more acute. Demand for adult social care, children's services, and support for vulnerable residents continues to rise while the ability to generate local income remains constrained.

That is why the first priority for any new era of devolution must be properly funding local government. The Government's multi-year settlement and the Recovery Grant have helped stabilise local government finances, but they are only the starting point. Future settlements must provide increased funding to reflect the rising demand and cost pressures facing councils, and that funding must be targeted at the areas of greatest need.

Secondly, devolution must give councils and combined authorities greater powers to shape public services. Nowhere is this more important than in social care. Local authorities are often managing the consequences of fragmented care markets without having sufficient powers to influence how those markets operate. Devolution offers councils the opportunity to play a much stronger role in procurement, market shaping, and care commissioning across regions, reduce unnecessary costs, and ensure public money delivers better outcomes for residents.

Perhaps most importantly, devolution must create the conditions for prevention.

For too long, public services have become trapped in a cycle where funding is consumed by responding to crises rather than preventing them. Councils understand that investing early saves money later. The challenge is that many simply do not have the financial headroom to make those investments.

If new devolved revenues are to have a transformative effect, a significant share should be directed towards early intervention and community resilience. SIGOMA has argued for dedicated capital funding that allows councils to invest in preventative infrastructure, strengthen in-house services, and support long-term community programmes.

In Middlesbrough, I have committed to ensuring every part of the borough has access to youth facilities and opportunities for young people. That is not simply a social policy. It is a preventative policy. Strong youth services, safe community spaces, and early support programmes can reduce future pressures on social care, health services, and education.

The Government's devolution agenda has the potential to reshape how England is governed. But success will depend on recognising a simple truth. If ministers want local leaders to drive growth, reduce inequalities, and reform public services, they must provide the funding and powers that make those ambitions achievable.

Local government stands ready to deliver. Today's announcement could be an important step towards giving us the tools and resources to do so.

Chris Cooke is Mayor of Middlesbrough and Chairman of SIGOMA.