Power must be matched by funding if devolution is to deliver
Posted on August 11, 2026
Writing in The MJ, our Vice Chair, Cllr Graham Morgan, sets out why devolution's promise will only be delivered if new powers for local leaders are matched by proper, sustained funding for councils.
The Government's announcement of its plans for devolution reflects a growing understanding that local leaders are best placed to understand local challenges.
Giving local leaders greater control over economic strategy, public services and investment has the potential to improve outcomes for residents and strengthen accountability.
As leader of Knowsley Council, I see every day the value of decisions being made closer to the communities they affect. Local leaders are working together to unlock regeneration opportunities, support economic growth, and deliver services that improve people's lives.
Our approach in Knowsley demonstrates that in practice. It brings together support to help residents, whether through cost-of-living assistance, health and wellbeing support, or employment opportunities. By connecting people with support earlier, we can improve outcomes while reducing pressure on public services.
That is why successful devolution depends on strong local authorities. Councils remain at the frontline of supporting vulnerable residents, shaping places, driving growth, and delivering essential services. Yet they have spent years responding to rising demand and increasing costs while facing sustained pressure on budgets.
Nowhere is this challenge more apparent than in social care. Since coming into office, the Prime Minister has announced plans to accelerate adult social care reform by bringing forward the timetable for the Casey Commission's recommendations, recognising the scale of the challenge facing the country.
Social care is one of the defining public policy issues of our time. As populations age and needs become more complex, councils are supporting growing numbers of older people, adults with disabilities, and vulnerable residents, often within an increasingly strained financial framework.
As more funding is directed towards statutory responsibilities, councils have less capacity to invest in prevention and early intervention. Yet it is those preventative services that can help people live independently, improve wellbeing, and reduce future demand on public services.
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 Recovery Grant have helped provide greater stability for councils but these measures are only the starting point. If local leaders are to take on greater responsibilities, funding must keep pace with rising demand and cost pressures.
Future funding reforms must include stronger redistribution and arrangements to ensure areas with weaker local tax bases are not disadvantaged, and that deprivation and need remain central to how resources are allocated.
The promise of devolution is significant. The challenge now is ensuring that new powers are matched with proper funding.
You can read the article in The MJ here.