£1.3bn devolution fund clears first parliamentary hurdle
Legislation to create the Hampshire and Solent Combined County Authority has passed its first major parliamentary test, unlocking £1.3bn in devolved funding. The authority will take control of transport, skills and housing from Whitehall by 2025, bypassing regional mayor elections until 2028.
Parliamentarians have paved the way for the Hampshire and Solent Combined County Authority to receive £1.3 billion in devolved powers and funding after MPs laid the enabling legislation on Monday. The move marks the first tangible step toward shifting economic levers from Westminster to local leaders across Hampshire, the Isle of Wight, Portsmouth and Southampton.
Under the deal, the combined authority will assume responsibility for transport infrastructure, skills training, employment schemes, housing strategy and economic development once it becomes operational later this year. Day-to-day public services including social care, waste collection and road repairs will remain with existing councils.
💡 Pro Tip
Local businesses should prepare now for upcoming procurement opportunities linked to the £44.6 million annual funding stream, expected to launch in early 2025.
Alex Winning, leader of Southampton City Council, described the legislation as a "landmark moment" that will allow the region to "take powers and resources out of Westminster" to drive growth. Hampshire County Council leader Nick Adams-King echoed the sentiment, calling the devolution package a "huge opportunity" for local leaders to unlock the area’s potential without waiting for a regional mayor, whose election has been delayed until 2028.
| Local authority | Leadership | Key priority cited |
|---|---|---|
| Hampshire County Council | Nick Adams-King | Economic growth and infrastructure |
| Southampton City Council | Alex Winning | Skills and housing |
| Portsmouth City Council | Steve Pitt | Business opportunities and transport |
| Isle of Wight Council | Phil Jordan | Island resilience and youth retention |
Steve Pitt, Portsmouth City Council leader, said the authority would bring "economic growth and new opportunities" to the city, while Phil Jordan of the Isle of Wight Council framed the deal as a "once-in-a-generation chance" to reverse population decline and improve local connections. The Isle of Wight will receive £17.84 million annually for the first two years—40% of the total annual allocation—before full control transfers.
Key Points
- ✅ Legislation laid on March 16 paves way for £1.3bn devolution fund
- ⚡ Combined authority to take control of transport, skills and housing by 2025
- 💡 Regional mayor elections postponed until 2028
Interim arrangements are already in place. Hampshire County Council has appointed Dr Ruth Adams as interim chief executive, with temporary staff filling key roles such as chief financial officer and monitoring officer. The combined authority’s website went live this week at hantsandsolent-ca.gov.uk, providing a central hub for updates on funding rounds, strategic plans and public consultations. The first annual investment tranche—£44.6 million—is scheduled for release in early 2025, with 40% earmarked for the Isle of Wight.
📋 By The Numbers
- £1.3bn — Total devolved investment fund over 30 years
- £44.6m — Annual funding allocation starting in 2025
- 40% — Share of first two years’ funding directed to Isle of Wight
- 2028 — Date set for first regional mayor election
The devolution package represents one of the largest non-mayoral funding transfers in England, positioning the Solent region as a testbed for decentralised economic policy outside London. While full operational control won’t begin until next year, local leaders are already drafting joint strategies in anticipation of the funding pipeline. The authority will operate under a shadow governance structure until formal launch, ensuring no disruption to critical services during the transition.
- March 16, 2025 — Legislation laid in Parliament
- Late 2025 — Combined authority expected to become operational
- Early 2026 — First annual investment funding released
- 2028 — Regional mayor election to be held
With the legal framework now in place, the focus shifts to implementation. Local authorities are finalising the operational framework, including governance protocols and decision-making processes. The combined authority’s remit excludes major public services, which will remain under council control, but it will have unprecedented influence over long-term planning and economic strategy across one of England’s most economically diverse regions.