As cities and regions across Europe struggle to manage the integration challenges posed by immigration, a growing number of people are looking to decentralisation for answers. This Policy Network paper argues that increasing the financial and decision-making power of local authorities is a necessary precondition for formulating and implementing successful integration policies, but it is not a panacea. The paper provides a framework for thinking about decentralisation and its implications at different levels of governance taking into account the varied ideological and institutional settings which prevail across Europe.