Not even 24 hours after publishing the Autumn Budget and the Fiscal Devolution Roadmap, Government provided a significant update on its review of the Local Government Reorganisation (LGR) programme, confirming that it is minded to proceed with reorganisation in five areas and that it is continuing its review of the other areas – with a decision expected in those areas by early next year.

The announcement also provides greater clarity on the revised timetable for the wider LGR programme. Local elections will take place on existing council boundaries in May 2027, with it being anticipated that, subject to final decisions being made, elections to shadow authorities will take place in May 2028 and new councils are expected to be established on 1 April 2029.

The update follows Government’s decision last month to review recent LGR decisions. While the position is now clearer for some authorities, a further 15 areas remain under review. This insight covers what local authorities need to know about the latest update.

Which areas are moving forward?

The Government has confirmed, and sent letters to the relevant authorities, that it is minded to proceed with the following proposals:

• East Sussex and Brighton and Hove: two unitary proposal (submitted by East Sussex County Council, Eastbourne Borough Council, Hastings Borough Council, Lewes District Council and Rother District Council – with the boundary change requested by Brighton and Hove City Council, with the exception of Falmer parish).
• Gloucestershire: one unitary proposal (submitted by Cotswold District Council, Gloucestershire County Council, Stroud District Council, and Tewkesbury Borough Council).
• Oxfordshire: three unitary proposal (submitted by Oxford City Council) including the adjoining area of West Berkshire Council – with the boundary change Oxford City Council requested alongside the proposal.
• Warwickshire: two unitary proposal (submitted by North Warwickshire Borough Council, Nuneaton & Bedworth Borough Council, Stratford-on-Avon District Council and Warwick District Council).
• Worcestershire: two unitary proposal (submitted by Bromsgrove District Council, Malvern Hills District Council, Redditch Borough Council, Worcester City Council and Wychavon District Council).

There will now be a period of at least three weeks for further representations before final decisions are made. Importantly, these are not yet final decisions. Councils affected will therefore need to consider the announcement carefully, including what preparatory work can sensibly continue while the Government completes this next stage.

The minded-to letters set out Government’s considerations of the performance of each proposal submitted for the area against the original criteria in the invitation letters and the reasons why they are minded to select the preferred proposal. These letters provide a much more detailed and specific response against the criteria than in the original letters.

Reorganisation in Surrey will remain unaffected, with two new unitary authorities (East and West Surrey) going live on 1 April 2027.

What about the remaining areas?

Government has confirmed that the LGR programme remains underway. It will consider the way forward for the remaining 15 areas and expects every area to have an outcome by early 2027.

This includes nine areas where previous reorganisation decisions have now been withdrawn and will be reconsidered:

• Derbyshire and Derby
• Devon, Plymouth and Torbay
• Hertfordshire
• Kent and Medway
• Lancashire, Blackburn with Darwen and Blackpool
• Leicestershire, Leicester and Rutland
• Lincolnshire, North Lincolnshire and North East Lincolnshire
• Nottinghamshire and Nottingham
• Staffordshire and Stoke-on-Trent

The four decisions relating to the following areas were previously withdrawn in September:

• Essex, Southend-on-Sea and Thurrock
• Hampshire, Isle of Wight, Portsmouth and Southampton
• Norfolk
• Suffolk

Decisions are also awaited for:

• Cambridgeshire and Peterborough
• West Sussex

Government has said that withdrawing decisions does not mean reorganisation has been cancelled. All options and proposals remain under consideration in the affected areas and further decisions are expected early in the New Year.

Funding support

The Government has also provided further detail on financial support. Areas where decisions had previously been made will receive £450,000 for each previously announced new unitary authority from the £63 million capacity fund to help meet implementation costs already incurred. Cambridgeshire and Peterborough and West Sussex will each receive £500,000, with further funding to follow once final decisions are taken.

For councils, the latest announcement therefore provides greater certainty on the overall direction and timetable of LGR, but significant questions remain for individual areas. Authorities will need to keep their plans under review, particularly where work depends on the eventual structure, boundaries or timetable for new councils.

How Capsticks can help

To discuss anything relating to the contents of this insight and the impact of LGR decisions – or the pausing of the LGR programme – on your organisation, contact our Head of Local Government Tiffany Cloynes or Legal Director Rebecca Gilbert to find out more about how Capsticks can help.