back to top

Devolution and Kent: What businesses need to know

July, 2025

We’re getting closer by the day to the biggest shake-up in local government since the 1972 Local Government Act. Yet, despite the scale of the change, the English Devolution and Community Empowerment Bill has largely flown under the radar in many business and real estate circles. Andrew Metcalf, Managing Director at PR and public affairs agency Maxim, looks at how the reforms will affect businesses in Kent. 

The huge changes approaching in local government have been largely overshadowed by the Industrial Strategy, the Planning and Infrastructure Bill, and revised National Planning Policy Framework (NPPF), meaning many businesses are unaware of what’s happening and how it will affect them. 

Why was Kent – the county with the UK’s only High Speed trainline, on the doorstep of London and with the nationally significant Port of Dover and Eurotunnel connecting us to the country’s biggest trading partner – overlooked as a mayoral authority? 

It was a mistake. These reforms will shape how regeneration, infrastructure and economic development take place – especially for those fast tracked for new mayoral authorities, which unfortunately now excludes Kent.


Devolution – new leadership, new geographies

The Government devolution train has left the station with the introduction of elected mayors overseeing new ‘strategic authorities’ – groupings of local councils covering populations of at least 1.5 million. Powers and funding will vary depending on the tier of authority, with established mayoral authorities having the most autonomy, including access to flexible integrated funding settlements.

At the same time, local government will be reorganised. The current two-tier county and district model – such as Kent County Council and the 12 district/borough councils – could be replaced by single-tier unitary authorities, each serving over 500,000 residents, like Medway does already. These new units would then eventually sit within a larger strategic authority in a few years.

This reorganisation raises serious questions about the future shape of local decision-making across Kent, including planning, regeneration, and infrastructure.
 

Levelling up through local control

The Government clearly believes in devolving power – particularly over regeneration, infrastructure and economic development – and there’s merit in that approach. Strategic authorities and elected mayors will have new responsibilities and funding tools to promote local growth, attract investment, and unlock sites previously considered unviable. The problem for Kent is that we won’t have a Mayor for a few years, so we risk being marginalised when it comes to funding. 

Kent businesses, especially those in construction, property and professional services, are going to have to work even harder to make the most of the situation if they want to secure influence and partner with local leadership on long-term projects.


Private investment will be critical

Given the parlous state of the Treasury’s purse, the devolution agenda signals a clear drive to unlock private capital. Mayors will be tasked with using public funds to unlock private investment in neighbouring Essex, Sussex and Surrey. While we remain in the devolution slow lane, our near neighbours will be foot hard down in the metaphorical growth lane.

In Kent’s case, when it comes to tackling viability gaps in brownfield regeneration, land assembly or infrastructure delivery, that’s going to require business to work with the new unitary authorities, and they’ll have to lobby Westminster and Whitehall for matched funding.

Kent looks likely to miss out on new powers for Mayoral Development Corporations and access to national funds like the National Wealth Fund and the Office for Investment, where there’s real momentum behind delivering ambitious, locally driven regeneration.

Developers and investors with well-evidenced, place-sensitive proposals – those that deliver both economic and social value – will need to engage with the new unitary authorities and build new relations.


Risks – and opportunities – in Local Government Reorganisation

With more than 300 councils across England potentially being reduced to around 200, there are clear risks. Some councils will merge or disappear altogether, putting existing local relationships and long-term development plans at risk – particularly if they don’t align with the new mayoral spatial strategies.

Planning services could experience disruption during the transition, especially as the Government expects full reorganisation proposals to be submitted by November this year. But the shake-up could also lead to land and property disposals, new local leadership, and fresh policy priorities.


What Kent businesses should do now

We thought that Kent’s scale, proximity to London, ports and development potential made it a perfect candidate for an early Mayoral Strategic Authority, but our hopes were dashed on a desk in Whitehall. Instead, we’ll get three or four unitary authorities.

Businesses need to engage now to understand how these changes could reshape local power structures, influence decision-making, and unlock new opportunities.

Those who prepare now – building relationships, reviewing pipeline projects, and aligning their proposals with local and regional priorities – will be best placed to grow as these changes take effect across Kent.


Andrew Metcalf is Managing Director of Maxim, Deputy Chair of Kent Invicta Chamber of Commerce and represents business on the Kent & Medway Economic Partnership.
 

Andrew Metcalf - Director

Andrew Metcalf

Maxim / Managing Director

posted in: advice,

we'd love to work with you

get in touch
tendentious-parliamentary