England’s ongoing devolution initiative carries potential benefits but also significant challenges related to local capacity and accountability, according to experts working within the sector. As power and funding shift away from central government to local and combined authorities, concerns have arisen over inconsistent procurement practices and the capacity of local bodies to manage these new responsibilities effectively.

The current landscape of devolved funding for public services is described as increasingly complex and fragmented. Different authorities have adopted varied approaches to commissioning, with some demonstrating strong procurement capabilities and constructive engagement with local providers. However, others have been criticized for opaque, inconsistent processes that create barriers for smaller, locally rooted organisations. Larger national entities are often better equipped to handle this complexity, while smaller voluntary and community groups struggle to navigate multiple portals and differing requirements.

A professional operating in the third sector highlighted that while devolution aims to bring decision-making closer to communities and increase opportunities for local providers, the reality risks creating a “postcode lottery” in service delivery and funding access. The success of devolved powers depends not only on where authority resides but also on whether local institutions have sufficient capacity, expertise, and meaningful oversight to manage substantial public funds responsibly.

The devolution process is unfolding amid a significant reorganisation of local government structures in England. Currently, 185 councils are being restructured into 21 new unitary authorities, with six new mayoral combined authorities being established. This period of transformation coincides with acute financial pressures; over the past six years, eight councils have issued section 114 notices—a formal declaration of bankruptcy—whereas such occurrences were almost nonexistent in the prior 18 years. A 2024 survey from the Local Government Information Unit revealed that 51% of councils considered it likely they would issue a section 114 notice within the next five years.

Experts warn that the pace of devolution risks outstripping local governments’ ability to deliver, particularly as many authorities undergo dismantling and rebuilding processes while facing budgetary shortfalls. This raises concerns about the sequencing of reforms, suggesting that while devolving power is widely regarded as a positive long-term goal, successful implementation requires aligning funding responsibilities with adequate local governance capacity and scrutiny mechanisms.