Earlier in 2026, following the submission of proposals by all two-tier council areas, Government issued its decisions on Local Government Reorganisation (LGR) in the majority of those areas in two waves. In our April and July updates, we considered what those decisions meant for affected councils and the wider direction of the LGR programme.

In a statement to Parliament on 7 September 2026, the Secretary of State for Housing, Communities and Local Government, Angela Rayner, announced that Government will review the LGR programme after receiving updated legal advice.

What has changed?

Decisions affecting the four areas within the Devolution Priority Programme (Essex, Hampshire, Norfolk and Suffolk) have been withdrawn, whilst plans for the 14 other areas, along with Cambridgeshire & Peterborough and West Sussex (where decisions were still awaited), have been paused pending further review. These 14 areas are:

• Derby and Derbyshire
• Devon, Plymouth and Torbay
• East Sussex and Brighton
• Gloucestershire
• Hertfordshire
• Kent and Medway
• Lancashire, Blackburn with Darwen and Blackpool
• Leicester, Leicestershire and Rutland
• Lincolnshire, North Lincolnshire and North East Lincolnshire
• Nottingham and Nottinghamshire
• Oxfordshire and West Berkshire
• Staffordshire and Stoke-on-Trent
• Warwickshire
• Worcestershire

Surrey is unaffected by the review and the creation of the new East Surrey and West Surrey unitary authorities remains on track, with implementation continuing in April 2027 as planned.

Why the change?

According to Government, the review follows receipt of "updated and privileged" legal advice and is intended to ensure that the reorganisation process is legally robust and compliant with the law.

Angela Rayner told Parliament that she had been instructed to “look at” the LGR programme by Prime Minister Andy Burnham. She said: “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.”

Devolution remains central to Government’s agenda, she noted, saying: “As we are now determined more than ever to devolve power closer to the people we represent, it’s only right that as the new Secretary of State I make sure that everything we do is working towards that plan to change Britain.”

She added: “I recognise the huge amount of work that has already gone into progressing reorganisation in each of these areas, and I am very grateful for it.”

Angela Rayner further said in her statement that she had asked the Minister for Local Government, Devolution and Regional Growth to undertake a rapid review of the current LGR programme. This Minister wrote to LGR council leaders also on 7 September to announce the withdrawal of the four decisions and the rapid review of the programme.

The legal context

The announcement follows a period of increasing legal scrutiny of the reorganisation programme. Several councils have launched legal challenges in relation to the Government's decision-making process. Reports have indicated that legal issues concerning the approach taken to certain decisions have become a significant factor in the Government's reconsideration of the programme.

While the substance of the legal advice has not been made public, the Government's decision to withdraw and pause previously announced outcomes demonstrates the importance of ensuring that major structural reforms are supported by a clear and legally robust process.

What does this mean for councils?

Government has indicated that local elections in May 2027 will proceed on existing council boundaries while the review is undertaken.

For councils whose decisions have been withdrawn or paused, planned implementation activity may need to be paused and reviewed while greater clarity emerges from Government as to the timescales for the review. Many authorities have already devoted significant officer time, political resource and external support to developing proposals and preparing for transition. The review inevitably raises questions about programme timelines, governance arrangements and future decision-making.

For now, authorities will need to continue business-as-usual responsibilities whilst awaiting clarity as to the future direction of this programme.

Conclusion

This is a significant development in the LGR programme, which has been a key area of priority for the Government since it was announced in December 2024. Authorities, elected members and partner organisations will now be looking for clarity from Government on the scope of the review, the timescales involved and what this might mean for the programme and implementation.

We will continue to monitor developments closely and provide further updates as details emerge regarding the review and its implications for affected areas.

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.