Devolution in Hampshire and the Solent

What businesses need to know

Overview

The Government continues to progress plans to create a Mayoral Combined County Authority (MCCA) for Hampshire and the Solent. This would transfer certain powers and funding from central government to a new regional body. The proposals aim to support long‑term economic growth, improve public services and enable decisions to be made closer to local communities.

Devolution timeline

2025 – Government Decision Making

• Hampshire and the Solent were placed on the Government’s devolution priority programme in February 2025.
• A public consultation concluded in April. Government was expected to confirm whether statutory tests had been met by mid to late June 2025. This decision determines whether legislation to create the new authority can proceed.

Late 2025 – Legislative Preparation

• Once the statutory instrument (SI) is laid in Parliament, the first release of mayoral capacity funding is expected. This was anticipated for late October 2025.

Early 2026 – Legal Formation of the MCCA

• Councils will be required to submit assurance frameworks, with the MCCA expected to be legally established during early 2026.

Mayoral Elections

• The Government originally confirmed that the first mayoral election would take place in May 2026.
• However, a Written Ministerial Statement issued on 4 December 2025 announced that these elections will be delayed by two years to May 2028.

Linked Local Government Reorganisation

• The English Devolution White Paper confirms a separate programme to reorganise Hampshire’s local authorities into new unitary councils.
  • Shadow elections in May 2027
  • New councils to begin operating 1 April 2028
  • These new authorities will then sit on the MCCA.

Key features of the proposed MCCA

If implemented, the Hampshire and Solent MCCA would hold strategic responsibility for areas such as:

• Transport and infrastructure planning
• Housing and regeneration
• Skills and employment programmes
• Local economic development
• Long‑term investment funding packages (e.g., the £44.6m per year 30‑year investment fund announced in December 2025)

This places the region alongside other devolved areas in England with access to multi‑year funding settlements and increased local decision‑making powers.

What this means for businesses

1. Increased Focus on Local Investment

Businesses may see new funding programmes, grants and sector‑specific initiatives emerge as the MCCA sets its strategic priorities. This could include incentives for skills development, innovation and regeneration.

2. Changes to Local Economic Strategy

Devolution is intended to support long‑term productivity and growth. Regional strategies may shift focus toward:

• High‑growth sectors
• Infrastructure investment
• Skills planning aligned to business needs

This may create new opportunities for expansion, recruitment or relocation within the region.

3. More Integrated Public Services

Bringing decision‑making closer to the region is expected to improve the coordination of services such as transport, planning and skills. Businesses may benefit from:

• Simplified funding routes
• Joined‑up support for training and apprenticeships
• Clearer regional planning priorities

4. Potential Future Fiscal Changes

While no local tax changes are proposed at this stage, national policy direction suggests scope for future fiscal devolution, meaning certain taxes or revenue mechanisms could be adjusted or retained locally. Businesses should stay aware of the potential for future changes.

How HWB can support you

As plans progress, HWB can help clients understand and navigate the implications:

• Strategic planning to align with local economic priorities
• Grant and funding advice for new regional schemes
• Assurance services for projects receiving devolved funding
• Tax and payroll guidance as employment and skills programmes evolve
• Support for charities and VCSE organisations likely to see increased engagement with regional initiatives

Next steps

The devolution programme remains subject to Parliamentary approval of the statutory instrument and further Government guidance. HWB will continue to monitor developments and issue updates as the position becomes clearer.

If you have any questions regarding the above article, please contact Michaela Johns on 023 8046 1256 or email Michaela Johns.