Written statement: Local Government Reorganisation - Oct 29
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Minister for Local Government, Devolution and Regional Growth (Jim
McMahon): This Government is committed to a fundamental
rewiring of a system that for too long has seen power held in
Westminster and Whitehall, rather than with people and the places
where they live, work and invest. Strong and sustainable local
government is the foundation of our Rewiring the State agenda.
Reorganising 21 two-tier areas across England will impact nearly a
third of the population of...Request free trial
Minister for Local Government, Devolution and Regional Growth (Jim McMahon): This Government is committed to a fundamental rewiring of a system that for too long has seen power held in Westminster and Whitehall, rather than with people and the places where they live, work and invest. Strong and sustainable local government is the foundation of our Rewiring the State agenda. Reorganising 21 two-tier areas across England will impact nearly a third of the population of England and last for generations to come, so it is important that we consider our approach and decisions fully, and plan for the long term. On 7 September, the Secretary of State therefore announced that we were undertaking a review of the Local Government Reorganisation programme to make sure that the process was robust, and that it meets the priorities of a new administration and the new Prime Minister. Since we made that announcement, I have listened closely to a wide range of voices from the local government sector and those that care about it from local leaders and sector partners, to Mayors and Members of Parliament. I recognise the strength of feeling about the decisions announced so far, both from those who raised concerns about them and those who support them. While there remain different views about the right outcome for each area, I am grateful for the constructive way in which places have continued to engage with me and my officials. I know the announcement has had a significant impact on local councils, councillors and staff across the country, and I am grateful for the patience they have shown throughout this process. I recognise that the review period has not been easy, and I do not take for granted their continued commitment to the long-term work needed to fix the foundations and put local government in the best possible position. Above all, I have heard a clear message from colleagues: you want clarity about what happens next and what it means for your area. Today, I want to provide that clarity and set out the way forward for each area. REVIEW - PHASE 1 I am pleased to report that the first phase of the review is now complete. Working with the Secretary of State and officials, I have interrogated the key pillars and framework underpinning the Local Government Reorganisation programme, including whether the existing unweighted criteria set in February 2025 and its objectives continue to support the policy priorities of the new Government. I have concluded that the basis of the programme is robust and that the existing criteria against which proposals have been submitted were both correct on their own terms and continue to support the Government's policy agenda. Single-tier local councils are a key enabler of the Rewiring the State agenda. Stronger, more sustainable unitary councils will support more effective partnership working between local, regional and central government and better outcomes for economic growth, building the houses local people need, helping reform public services, and empowering local communities. They will be strengthened further by new measures brought forward in the English Devolution and Community Empowerment Act 2026, for instance on neighbourhood governance and community ownership. Following this initial phase of the review, I can therefore confirm that the Government remains committed to delivering local government reorganisation and that we will continue to move forward with the programme based on the existing criteria, which I hope gives confidence as we move ahead. Throughout this phase of the review, ministers and officials have heard from leaders and officers from all corners of the local government reorganisation programme, as well as key local government stakeholders. I know that consensus on the outcome in every area is not possible. But I have heard that more can, and must, be done to recognise the demands being placed on council leaders and senior leadership teams; to make sure councils feel supported to deliver such important changes including in relation to disaggregation; and to build consensus on how we deliver this programme and the timetable in each area. I am clear that central and local government work best when we work in partnership and I am committed to doing all I can to ensure that this government is an active partner that local government feels able to rely on. REVIEW MINDED TO DECISIONS I am now able to set out a timeline for concluding the final phase of the review across the 20 areas in the review other than Surrey and confirming the outcome for each. I hope this will give local councils the certainty they need to plan ahead, while giving us the time necessary to complete our consideration of each individual area. I have considered carefully whether outcomes should be announced together or as decisions are reached. I have concluded that councils should not be asked to wait unnecessarily once the consideration of their area is complete. We will therefore inform councils at the earliest practical opportunity, meaning that some areas will receive an outcome before others. First, I am now able to give further clarity in respect of five of the 14 areas with decisions taken in July. In these areas, the proposals received, their merits, and all relevant evidence and views have been carefully considered against the existing criteria. Following this consideration, we are minded to implement, subject to a representations process and Parliamentary approval, the following proposals:
To note, the Secretary of State has recused herself from local government reorganisation decisions in the East Sussex and Brighton and Hove invitation area so I will take decisions there. These five areas are receiving letters setting out the rationale for why we are minded to proceed with these proposals. Before we take our final decision, there will be a minimum period of three weeks, during which those interested may make further representations to me. I will shortly confirm the start and end date for this representations period and I will also set out how councils and interested parties can make representations. Any final implementation decision would also be subject to Parliamentary approval. To be clear, the previous decisions in these five areas made in July 2026 are today withdrawn. For the remaining nine areas where decisions were also announced in July 2026, we will consider these areas further in the next phase of the review, with more detail set out below. To give councils clarity on the status of the existing decisions while we do that, the Secretary of State and I today are also withdrawing the decisions announced in July 2026 for the following areas:
For the avoidance of doubt, all options and proposals in these areas will remain under consideration as part of the review. REVIEW - NEXT PHASES I now turn to the next phases of the review and those 15 remaining areas due to have a minded-to decision:
I believe it is right to take a structured approach to the review and give each area the serious and deep consideration it deserves given the significance of these decisions. As I have set out above, we will seek to inform councils at the earliest practical opportunity, meaning that some of these 15 remaining areas will receive an outcome before others. We commit to coming back to this House with updates on outcomes in another set of areas by Christmas and I commit that we will work to ensure that every area will have an outcome by early next year. ELECTIONS In September, we set out that the review meant that elections scheduled to take place in May 2027 would go ahead to existing councils. This remains the position for all 20 areas covered above. In those areas, the timetable is elections to new councils in May 2028 followed by vesting day on 1 April 2029. CAPACITY AND TRANSITION FUNDING I recognise the impact and costs of ongoing uncertainty and delay, which I have also considered in the initial phase of the review. I understand that areas will have incurred costs associated with local government reorganisation in good faith. For areas where new unitaries were previously announced, we will pay 50% of the £900,000 of transition support per new unitary, based on the number of new unitaries in the initial announcement. This funding is guaranteed and will be paid in the coming weeks. It is not contingent on the outcome of the review. For Cambridgeshire and Peterborough and West Sussex, where no decisions have been previously announced, we will instead pay £500,000 to each area. When final decisions are made, we will pay the balance of the £900,000 of transition support per each new unitary, taking account of funding already paid to its area, as well as £150,000 of supplementary funding per new unitary for Leadership Capacity and Continuity in Children's Services, Adult Social Care and Public Health. COMMITTEE SYSTEM The English Devolution and Community Empowerment Act 2026 sets out that all councils operating the committee system must transition to a leader and cabinet executive by 29 June 2027, except where they are protected' or secondary legislation has been made under which they would be dissolved. The Secretary of State has discretion to extend the deadline for transition by up to one year. She may do this if she considers it likely that secondary legislation to deliver local government reorganisation will be made in relation to a council during the one-year period between 29 June 2027 and 29 June 2028. This would include where a minded to decision on local government reorganisation is made envisaging legislation to implement local government reorganisation in an area within the extension period. The purpose of allowing extensions in legislation is to ensure that councils undergoing local government reorganisation would not have to move from the committee system to a leader and cabinet executive shortly before being dissolved. This remains the Government's position. CITY STATUS AND CEREMONIAL MATTERS We recognise the pride, history and identity that sits behind our cities and counties which is why we will work with areas to make sure city status and any ceremonial rights are preserved following reorganisation. City status and ceremonial matters play a valuable role for pride of place in our local communities. These issues have been raised by local areas and Members of Parliament for some time, and we recognise that this is an important programme of work. Subject to any final decisions taken on reorganisation, we will work with places to protect their city status, by reviewing all available options and relevant precedents, including bringing new legislation to this House where it is necessary to do so, and likewise, for any ceremonial matters currently held by councils that would be abolished. NEXT STEPS I have committed to this being a full, considered review, and to giving colleagues in councils and local people clarity on their future as soon as possible. I recognise the tension between these two objectives but would like to reiterate my appreciation to colleagues across the House and within local government for their ongoing patience as we progress this review. I will keep the House updated on progress. As before, this review and update does not impact Surrey, where the new West Surrey and East Surrey councils will go live in April 2027. |