Plans for major overhaul councils halted

Plans for a major shake-up of local government are on hold, after the government launched a review in light of new legal advice.

Proposals to merge smaller councils to form larger authorities in Essex, Hampshire, Norfolk and Suffolk have been withdrawn.

Meanwhile, plans for 14 other areas will also be reviewed and paused.

Reorganisation in Surrey, where councillors for two new unitary authorities were elected in May, will not be affected by the review.

The government confirmed local elections in May 2027 would go ahead on existing council boundaries.

Communities Secretary Angela Rayner will announce the review in Parliament later.

She is expected to tell MPs that "in light of legal advice, I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law".

"And secondly, I want to fully test whether our proposals for local government reorganisation meet the priorities of a new administration and a new prime minister and any additional considerations," she will add.

The plans originated under Sir Keir Starmer's government, when Rayner was also local government secretary, before she was replaced by Steve Reed.

The government was already facing legal challenges over proposals to reorganise councils in Essex, Hampshire, Norfolk and Suffolk.

Local government in England is currently covered by a complicated patchwork of arrangements.

In some places, responsibility for local services is shared between county councils, which manage areas including social care and education; and district councils, which cover smaller areas and are responsible for services such as bin collections.

Some areas, particularly larger towns and some cities, have "unitary" authorities responsible for both - while the regions surrounding big cities are increasingly covered by regional mayors and multi-council "combined" authorities, with greater powers in areas such as transport policy, planning and housing.

In late 2024, as local government secretary, Rayner announced plans to move towards unitary councils across all of England, with council boundaries redrawn and smaller district councils abolished.

The government argued the proposals would make the system simpler and produce savings by making the delivery of services more efficient, while also handing new powers from Westminster to regions across the country.

However, critics said the plans would not save money; and would divert resources from front-line services and mean councils were more remote from their communities.

Under Sir Keir, the government had been pushing ahead with the proposals.

In July – just days before Andy Burnham became prime minister – Rayner's successor as secretary of state, Reed had announced plans for new councils in 14 areas.

The 14 areas where local government reorganisation is being paused while a review is carried out are:

Lancashire, Blackburn with Darwen and Blackpool

Leicester, Leicestershire and Rutland

Lincolnshire, North Lincolnshire and North East Lincolnshire

Staffordshire and Stoke-on-Trent

The government said decisions had not yet been taken on Cambridgeshire and Peterborough, and West Sussex, with these areas being considered alongside the wider review.

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