Blog by Ilya Donets, Principal Consultant, Local Authorities – Highways Sector (London & South East)

What's changing?

Local council devolution and restructure in England is set to reshape the way highways and infrastructure projects are managed. As central government hands over more powers to local authorities, this shift is expected to bring both opportunities and challenges for the sector. But what does this mean for those working in highways and transport?

Devolution is the process of transferring decision-making powers and funding from central government to local councils. The idea is to give local authorities more control over transport and infrastructure planning, allowing them to prioritise projects that best suit their communities. In recent years, metro mayors and combined authorities have gained greater control over transport budgets, and the latest devolution deals extend these powers further across England. The move is intended to speed up decision-making and provide greater flexibility, but it also raises questions about funding distribution, project delivery, and accountability.

With councils gaining more autonomy, highways and infrastructure planning is expected to become more localised. In theory, this should lead to faster decision-making and projects that better reflect the needs of local communities. It could also encourage closer collaboration with regional engineering firms, creating new opportunities for small and medium-sized enterprises. However, there is a risk that the quality and efficiency of infrastructure projects could vary significantly between regions, depending on the resources and expertise available to each council.

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Funding

Funding is going to be hotly debated. While direct budget allocations will give councils greater control, there is concern that some areas may receive significantly more investment than others, leading to an imbalance in infrastructure development. Councils will also need to demonstrate they can manage budgets effectively, ensuring that funding is allocated to long-term improvements rather than short-term fixes. If financial management is weak, delays and cost overruns could become more common, potentially stalling essential road maintenance and transport upgrades.

One potential advantage of greater local control is the opportunity for councils to identify cost efficiencies tailored to their specific circumstances. By designing and delivering transport schemes in-house or in closer collaboration with local partners, councils could reduce reliance on centralised procurement frameworks and large-scale consultancies, potentially saving money in the long term. Furthermore, local knowledge may enable more targeted investment in high-impact areas, increasing value for money and reducing waste.

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Procurement

Another key area of change will be procurement. Local councils will have more control over how they award contracts, which could benefit regional contractors and engineering firms. However, inconsistencies in procurement processes between councils may make it harder for national firms to operate efficiently across multiple regions. Contractors may also need to adapt to new local compliance requirements, adding an extra layer of complexity to project delivery. At the same time, greater autonomy could encourage innovation, with councils more willing to explore sustainable and flexible infrastructure solutions tailored to their local needs.

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What will the impact be?

For transport infrastructure and road maintenance, the impact of devolution will be immediate. Some councils may prioritise investment in sustainable transport, such as public transport networks and cycling infrastructure, while others may focus on traditional road maintenance. As decision-making shifts away from Westminster, the condition of roads and highways could become increasingly dependent on local priorities, leading to regional disparities in maintenance standards. The integration of transport planning with housing and economic development could improve connectivity in some areas, but without a coordinated national strategy, there is a risk of fragmentation.

For professionals working in highways and infrastructure, these changes will require adaptability. The demand for local technical expertise is likely to grow as councils take on greater responsibility for project management. Opportunities may increase for regional contractors, particularly those specialising in transport and highways. However, skills shortages could pose a challenge, as councils will need experienced engineers, surveyors, and project managers to oversee infrastructure projects effectively, as well as those with transport planning/policy and active travel expertise.

While devolution brings the promise of more efficient and locally focused infrastructure planning, it also comes with significant challenges. The success of this shift will depend on whether councils can manage their budgets effectively, coordinate with neighbouring regions on large-scale projects, and ensure investment is directed toward long-term improvements. For those in the sector, keeping up with these changes and understanding the evolving priorities of local authorities will be essential in navigating the new landscape.

At Carrington West, we are closely monitoring the impact of devolution on highways and infrastructure recruitment, especially in the public sector. Whether you are an engineer, project manager, transport planner or someone more senior, now is the time to explore how these changes could create new career opportunities. If you would like to discuss how devolution could affect your sector, get in touch with our specialist consultants today.