Powering up local transport: Why the new Devolution Bill matters

Supertram in Sheffield
Author
Monta Drozdova

The legislative agenda for transport is getting rather busy, with the latest in a string of government Bills on public transport – the English Devolution and Community Empowerment Bill - landing earlier this month.  

At the Urban Transport Group, we’ve long championed the transformative power of transport devolution. Our recent report, Delivering growth through transport devolution, charts how city regions have already used devolved powers to deliver real change—from Manchester’s Bee Network to London’s Elizabeth Line. But we also made it clear: we need to go further and faster. 

The Bill gives the much-anticipated detail behind the framework set out in the Government’s white paper published late last year. The Government has been clear in its support and backing of devolution, our members and Metro Mayors, but does the detail in the Bill back the positive sentiments? 

 

A new framework with expanded duties and powers  

The Bill lays the groundwork for a new approach to local governance across tiers of government.  A simpler and more consistent approach is established through a more standardised framework of devolved powers, duties and functions. It expands the remit of Combined Authorities (CAs) and County Combined Authorities (CCAs), giving them more control over transport, infrastructure, and planning, whilst also reforming the local government sector, and empowering communities, aligning public service boundaries to support public service reform.  

Crucially, for transport, it includes provisions for: 

  • Setting out a much-awaited framework for regulating on-street micromobility schemes through a licensing regime. This will involve minimum standard conditions set by the Secretary of State to ensure a consistent baseline of operability and safety, with licensing authorities enabled to add additional local conditions to shape schemes around local needs, connect people to public transport, and tackle issues, such as badly parked shared cycles. 
  • Reforming highway management and works coordination, enabling CAs to enforce contraventions of certain road traffic restrictions (such as banned turns and unlawful entry into bus lanes or box junctions), and enabling Key Route Network Power of Direction for Mayors.   
  • Standardising and clarifying governance processes and supporting cooperation and CA work with constituent councils. This includes placing a duty on all constituent councils to implement the CA’s or CCA’s local transport plan when carrying out their transport functions, as well as standardising voting arrangements.  
  • Giving Mayors of strategic authorities wide ranging new competencies, establishing in legislation a defined set of areas where Mayors have the competency to act, such as on transport, local infrastructure, housing and strategic planning, and others. 
  • Extending the General Power of Competence to Mayors and mayoral strategic authorities, enabling borrowing and levy powers to deliver on local priorities.  

 

Why it matters for our members 

Our members are already leading the way. They’ve shown how devolved powers can deliver cleaner buses, better rail services, and more joined-up transport networks. 

But they’ve also faced barriers: short-term funding, fragmented powers, and unclear and convoluted legislative arrangements. This Bill begins to address those issues. 

UTG members, the Bill, alongside commitment to Integrated Settlements, means: 

  • More autonomy to shape transport systems that reflect local needs 
  • Greater clarity on roles and responsibilities 
  • A stronger foundation for long-term investment and innovation. 

 

The road ahead - What needs to happen next 

This Bill, whilst welcome, ought to not be the end of the work on deepening and embedding devolutionary powers and structures across England. To truly unlock the potential of transport devolution, we still need action on several fronts: 

  1. Devolution of centralised consenting: The White Paper recognised various outdated Secretary of State consent requirements across highways and enforcement powers. We would urge these issues to be addressed as soon as practically possible, alongside devolving approval of local Lane Rental schemes.  
  2. Local investment levers: Treasury must commit to enabling further devolution by providing city regions with greater local investment levers, such as devolving decision-making on introduction of local fund-raising levers, retention and control of business rates, new land value capture mechanisms, and others.  
  3. National policy integration: Various transport, place, growth and sectoral strategies must align and enable places to deliver. 
  4. Capacity building: Local authorities need support to build the skills, systems and structures required to deliver. Devolution isn’t just about handing over powers - it’s about enabling success. 
  5. Rail reform: There is a once in a generation opportunity to redefine rail, with Mayors and MCAs (or their nominated bodies) at the heart of a new rail network, having devolved powers that will allow them maximise their growth and passenger ambitions, as part of an integrated network, while also supporting national ambitions for a world class rail system.

 

A brighter transport future 

Transport devolution is already changing lives - making commutes quicker, streets safer, and cities more connected. There are more steps to take to support our members to do even more to build, maintain and operate truly integrated public transport. The government must go further in their devolution agenda to ensure transport systems are not just functional, but transformative.  

Monta Drozdova is Policy and Research Advisor at the Urban Transport Group