As Local Government Reorganisation and devolution gather pace, England is on a journey towards consolidated, long-term funding in Local Government, covering everything from transport to regeneration and adult skills to employment support. 

Authorities that are devolving will become eligible for a long-term funding settlement (so far, each devolution deal agreed with government has resulted in a 30-year Investment Fund). But the pinnacle of the devolution journey is in becoming an Established Mayoral Strategic Authority, which enables the negotiation of an Integrated Settlement with central government. Integrated Settlements maximise the consolidation of funding and give authorities increased flexibility and autonomy for its own spending.  

So how should authorities build capacity and prepare for this responsibility, and what processes and governance do they need to put in place? 

Here are five things every authority should consider: 

1. Understand the landscape, who qualifies? 

Integrated Settlements don’t increase the size of the funding pot, they change how it’s structured. Only Established Mayoral Strategic Authorities (EMSA) can access them, and only after meeting strict criteria. As it stands, Integrated Settlements are only available to EMSA’s that have existed for 18 months, have a robust Local Assurance Frameworks agreed with government, and who can convince central government of their ability to manage public money. To date, only the West Midlands and Greater Manchester Mayoral Combined Authorities have Integrated Settlements, but these will be joined by the Liverpool City Region, West Yorkshire, North East, South Yorkshire Combined Authorities and the Greater London Authority from April 2026 onwards. Authorities must also negotiate and agree a detailed Outcomes Framework with government. Miss the targets contained within these Outcomes Frameworks and funding can be reduced or clawed back, or even lead to the revocation of the the Integrated Settlement status. 

2. Integrated Settlements and Investment Funds of the Devolution Deals are different 

All existing Mayoral Combined Authorities already receive long-term funding through their Investment Funds, as part of their devolution deals. These funds are already consolidated to a degree. So how is an Integrated Settlement different? 

Integrated Settlements allow up to 10% of funding to be shifted between policy areas: for example, moving funding from transport and local infrastructure into housing and strategic planning or health, wellbeing and public service reform to environment and climate change. In addition to this, they permit 100% reallocation of funding from economic development and regeneration to any other policy area. This increased flexibility will be important where Strategic Authorities might be falling behind against certain metrics in the Outcomes Framework, or simply where they want to reprioritise, adapting to an updated policy or strategy.  

But this flexibility doesn’t stop there. EMSA’s can also move up to 10% of capital funding to their revenue budgets and 100% of their revenue funding to their capital budgets. Whilst this will be warmly received by some as a step in the right direction, others may feel it doesn’t go far enough. 

3. Investment in projects influences metrics in the Outcomes Framework

As part of their Local Growth Plans, Strategic Authorities have to create an Investment Pipeline, which must demonstrate how their investments unlock growth, attract private sector investment, create jobs and increase productivity. Their Spatial Development Strategies should guide development and land use in their areas and their Transport Strategies will plan for investment in transport. But do Strategic Authorities fully understand how investment in different types of projects and programmes influences the metrics in the Outcomes Frameworks that they will be judged upon? Certainly no current suite of tools exists to provide a full picture to aid investment decision making, especially at the early stages of project development. Place-based business cases might help, but realistically, authorities may benefit from new guidance and tools to support this research more quickly. 

4. Prepare for Integrated Settlements 

The government has prepared a “readiness check” document to help Authorities prepare for and provide assurance of readiness for the settlement. Every MSA will undergo a formal readiness check by an independent assessor, commissioned by Ministry for Housing, Communities and Local Government. MSAs will then be required to update their Local Assurance Framework to reflect implementation of the readiness check recommendations. The check is effectively a financial and organisational audit to confirm the authority can handle the devolved funds responsibly. It covers four themes: strategy, planning, and governance; people and capability; financial and performance management; and reporting and evaluation. Our advice is don’t wait for the official check - perform an internal self-assessment early and act on it. West Yorkshire Combined Authority undertook an internal readiness self-assessment using the expected criteria, which helped strengthen its preparation programme ahead of the formal review.  

5. Building capacity 

Each Strategic Authority will already have a comprehensive data collection programme, officers involved in monitoring and evaluation activity, and their own appraisal and assurance teams. But these areas are likely to require strengthening when an Integrated Settlement and associated Outcomes Framework are in place. Additionally, authorities may have to take on new responsibilities that were previously managed by central government departments. The West Midlands Combined Authority has even created a dedicated Integrated Settlement programme team to coordinate delivery across departments and ensure strategic alignment. Understanding where gaps occur in the capacity and capability of the organisation, prior to an Integrated Settlement being in place, is therefore crucial to ensure compliance, smooth running and efficient delivery.

Integrated settlements are the final step in a long journey, but the journey starts earlier. They will be transformative for Strategic Mayoral Authorities, and they paint a picture of what funding settlements could look like for other future devolved authorities. It’s clear however that this can only be achieved with the right structures, strategies and skills are in place.