Devolution plans that could influence funding decisions for SMEs in Northants have stalled, after neighbouring councils failed to agree a shared mayor-led model for the South Midlands.
The government’s preferred approach is for counties to join combined authorities led by an elected mayor. These bodies can take on wider responsibilities linked to housing, skills and transport, backed by longer-term funding settlements than councils typically receive through short competitive pots.
Talks about a South Midlands authority previously involved West Northamptonshire, North Northamptonshire, Bedford, Central Bedfordshire, Luton and Milton Keynes. However, the proposal did not move forward as part of the first group of fast-tracked mayoral areas, and positions have since hardened between councils.
For smaller firms, the issue is not the governance structure itself. It is what it can unlock. A mayoral authority can bring a clearer pipeline of investment decisions, which can shape everything from road and rail priorities to where new employment land is supported. It can also affect skills programmes and business support that help SMEs recruit and scale.
Meanwhile, the national picture has added pressure. Police and crime commissioner arrangements are expected to change, with responsibilities transferring to mayors in areas that have them. That has sharpened the debate locally about whether Northamptonshire risks losing influence in regional decision-making without a clear route to a mayor-led deal.
In West Northamptonshire, leaders have continued to argue that a wider South Midlands footprint remains the strongest option available. However, Milton Keynes has backed progressing only with Bedfordshire and Luton partners, and has opposed any settlement that includes a Northamptonshire footprint.
That leaves the Northants councils describing a stalemate. They have warned that devolved areas are securing significant funding packages, while places without an agreed deal could struggle to compete. Additionally, the expected end of UKSPF has increased uncertainty about what replaces it and how future local growth funding will be allocated.
North Northamptonshire’s leadership continues to support the South Midlands geography, arguing that a larger authority could strengthen the region’s national voice and unlock investment. For SMEs, that could mean greater certainty about infrastructure programmes and supply-chain opportunities tied to construction, transport upgrades and regeneration.
Luton Borough Council, by contrast, has said it would only consider an authority with Bedfordshire and Milton Keynes, built on existing partnerships. Central Bedfordshire has taken a more flexible position, saying it is open to exploring options with a range of neighbouring areas.
Therefore, 2026 is likely to be dominated by negotiation between councils. For SMEs in Northants, the practical question is whether leaders can agree a devolution route that protects funding pipelines, improves long-term planning, and avoids delays to the transport and skills decisions that local growth depends on.
