In March 2008, the UK government published a white paper outlining major changes to the governance arrangements for the skills system in England. A key part of these proposals is to give local authorities (LAs) the lead role in commissioning and funding 14-19 provision in their area from 2010. After two decades during which central government has increased its control over almost every aspect of publicly-funded education and training, the commitment to devolve more power to the local level would appear to mark a significant shift in policy direction. Drawing upon new research, involving interviews with senior staff in LAs and other key stakeholders, this issues paper examines the challenges confronting LAs and asks how far these reforms represent a genuine devolution of power.