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Whitehall in the North: The hidden cost of regional bureaucracy

The North East, and England more widely, faces critical challenges: weak productivity, skills gaps, poor health outcomes, and underfunded public services. Addressing them requires focus, urgency, and delivery capacity. It does not require replicating the bureaucracy we already know does not work

Nick Kemp by Nick Kemp
10-09-2025 08:00
in Economy, Politics
Reading Time: 6 mins read
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Devolution was meant to bring decision-making closer to communities—unlocking local potential, loosening Whitehall’s grip, and enabling responsive, joined-up governance. But across England, Combined Authorities (CAs) are drifting from this original vision. Rather than building capacity for local delivery, they risk building internal empires: top-heavy, policy-focused, and increasingly disconnected from the communities they aim to serve.

This article looks at recent developments in the North East Mayoral Combined Authority (NEMCA), highlighting a worrying shift from frontline delivery to internal expansion. It makes the case for a smarter, leaner model; one that prioritises delivery over duplication and empowers the local systems already in place.

From local empowerment to building empires

Devolution was meant to decentralise decision-making; to shift power from Whitehall to town halls, from departments to neighbourhoods. The logic was simple: people and places are best served when power rests with those who know them best.

But consider the recent trajectory of the North East Mayoral Combined Authority (NEMCA). In just over a year, it has rapidly established its presence, ambition, and brand. What’s emerging, however, doesn’t always resemble local empowerment. It looks increasingly like internal empire building.

Rapid expansion… at a high cost

The scale of internal growth becomes even clearer when we look at the numbers.

In just the last six months, NEMCA has created at least 12 senior leadership roles—all on salaries ranging from around £81,000 to over £103,000. These are only the posts we know about. There may well be more.

New senior posts created in 2025 (captured to date):

RoleSalary Range (£)Estimated Cost (midpoint)
Head of People and Culture81,069 – 85,88583,500
Head of Culture, Creative Industries81,069 – 85,88583,500
Head of Health and Employability81,069 – 85,88583,500
Head of Skills Programmes and Delivery81,069 – 85,88583,500
Head of Skills Policy and Insight81,069 – 85,88583,500
Head of Business Growth and Support81,069 – 85,88583,500
Head of Technology and Transformation83,663 – 88,63386,000
Assistant Director of Place97,473 – 103,286100,000
Assistant Director of People & Transformation97,473 – 103,28699,000
Assistant Director – Transport Policy100,592 – 103,286102,000
Assistant Director – Strategic Investment100,592 – 103,286102,000
Assistant Director (Creative/unspecified)97,473 – 103,286100,000
Head of Economic Inclusion and Child Poverty 83,663 – 88,663                  86,000

                                           

The estimated total annual cost for all the aforementioned jobs adds up to £1,171,000. Over 4 years the annual cost increases to more than £4.6 million.

This is important to note especially when we consider the costs involved and this being the equivalent of 20–25 social workers, 40 youth workers, or entire housing delivery teams in local councils.

Displacement, not distribution

As Combined Authorities grow, they often draw talent away from local councils that still carry statutory responsibilities—housing, social care, planning, economic development. Senior officers with deep local knowledge are lured into regional roles, leaving councils struggling to recruit in a depleted market.

This is not capacity building. It is displacement. We are weakening the foundation, in order to construct a parallel tier of policy.

A parallel civil service?

Combined Authorities were meant to break from Whitehall-style silos. Yet the recruitment drive suggests the opposite: a regionalised replica of the very system devolution was meant to move beyond.

What’s missing are delivery experts—professionals who know how to manage programmes, mitigate risks, and adapt in real time. Across local government, industry, and the third sector, these skills already exist in abundance. They don’t need replacing. They need empowerment.

A smarter alternative

Rather than building a new layer of administrators, we could build a leaner, more collaborative system. 

Thematic delivery boards, not bureaucratic directorates

Cross-cutting boards: on housing, skills, transport, health, and net zero made up of council officers and sector experts could co-design strategy, shape joint bids, and align regional investment. Political accountability would remain with the Combined Authority Cabinet.

A lean regional secretariat

 A small, high-performing core team focused on programme coordination, data and insight, government engagement, and supporting delivery boards. The CA becomes a hub, not a headquarters.

Secondments, not extraction

Strategic roles filled by fixed-term secondments from councils, academia, or industry; avoiding permanent talent loss, fostering shared learning, and spreading expertise. 

Integrated scrutiny. Local authorities should lead on scrutiny: evaluating regional plans through a delivery-focused lens, ensuring transparency, accountability, and realism.

Flexible funding

 Resources should flow to the organisations best placed to deliver: whether councils, charities, universities, or businesses. The CA facilitates; it should not hoard.

Drifting away from ineffective models

The North East, and England more widely faces critical challenges: weak productivity, skills gaps, poor health outcomes, and underfunded public services. Addressing them requires focus, urgency, and delivery capacity. It does not require replicating the bureaucracy we already know does not work.

The choice is clear. We can allow Combined Authorities to drift into becoming regional civil services absorbing resources, duplicating roles, and drawing capacity away from where it’s needed most. Or we can demand a model true to the promise of devolution: lean, collaborative, delivery-focused, and rooted in the knowledge and experience that already exists across our councils, communities, and industries.

If devolution is to succeed, it must be about building capacity where it counts. Not building empires behind closed doors.

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Tags: Combined AuthoritiesDevolutionNEMCANorth EastPolicy
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Nick Kemp

Nick Kemp

Nick is an accomplished political and business leader with over 20 years of experience in economic strategy, business development, public affairs, and strategic communications. Nick is a Fellow of the Royal Society for arts, manufacture and commerce (RSA). His career spans senior roles in the public and private sectors, including leadership positions in public affairs and regional economic development, advising Footsie 100 companies. As the leader of Newcastle he contributed to the establishment of the North East Combined Authority, helping secure trailblazer status and he initiated the UKs first regional industrial strategy and the concept of the Green Super Port. He is a Trustee of the National Centre for The Children's Book, the Chair of Governing Body of Byker Primary School and the co-founder of Newcastle Stands with Ukraine.

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