PARLIAMENTARY DEBATE
Local Government Reorganisation - 16 July 2026 (Commons/Commons Chamber)
Debate Detail
Devolution requires strong local councils that deliver good public services and support economic growth, and which are closely connected to the communities they serve. Two-tier structures are confusing for residents, divide responsibilities, slow down decisions, duplicate costs and blur accountability. In many areas, existing boundaries no longer match patterns of local economies, public services or local identities. We cannot continue with an outdated and misaligned system that does not serve local people well. We can do better.
Today I am announcing further decisions on local government reorganisation in the remaining areas of the programme. Subject to parliamentary approval, I have decided to implement proposals for new councils in the following areas. In some of these areas, modification powers will be used to make the boundary changes requested alongside proposals.
The specifics are in the accompanying written statement, and for ease I will refer to the proposals in the following shortened form: in Derbyshire and Derby, the two-unitary option put forward by Chesterfield, Derby, Erewash and High Peak, including boundary changes; in Devon, Plymouth and Torbay, the four-unitary proposal put forward by Exeter and Plymouth, including boundary changes; in East Sussex and Brighton and Hove, the two-unitary proposal, including the boundary changes requested by Brighton and Hove city council, except for the parish of Falmer; the one-unitary proposal in Gloucestershire; the four-unitary proposal in Hertfordshire, including boundary changes, except for the ward of Arbury; in Kent and Medway, the four-unitary proposal put forward by Dover, Swale and Thanet; in Lancashire, Blackpool and Blackburn with Darwen, the four-unitary proposal put forward by Chorley, Lancaster, Preston, Ribble Valley, South Ribble and West Lancashire; in Leicestershire, Leicester and Rutland, a two-unitary option put forward by Leicester city council, including boundary changes; in Lincolnshire, North Lincolnshire and North East Lincolnshire, the four-unitary proposal put forward by Lincoln city council, including boundary changes, but leaving North Lincolnshire and North East Lincolnshire unchanged; in Nottinghamshire and Nottingham, a two-unitary option put forward by Nottingham city council, including boundary changes; the three-unitary proposal in Oxfordshire, including boundary changes; in Staffordshire and Stoke-on-Trent, the two-unitary proposal put forward by East Staffordshire, Stafford and Cannock Chase, but also by Stoke-on-Trent; the two-unitary proposal in Warwickshire; and the two unitary proposal in Worcestershire. On Cambridgeshire and Peterborough and West Sussex, I am not making announcements today, because further time is required to get the decisions right.
Everyone involved wants to see stronger local councils delivering better local services that will improve the lives of the people we serve. The decisions announced today will do that, and improve local government for more than 15 million people. We will see 38 councils operating across these areas in place of the current 134. That will result in more than 250 fewer senior posts, significant salary savings and nearly 3,000 fewer councillors, which could save up to £20 million per year on councillor allowances alone across these areas. Councils themselves projected that the decisions could lead to net savings of about £1 billion by the end of 2032-33 when the anticipated benefits are fully realised. Those savings will be reinvested in the frontline services that local people care about the most. Across England, once all decisions are taken, we will have cut the number of councils from 317 to a maximum of 173. That will simplify and strengthen local government serving over 20 million people.
Reorganisation will also support city growth. For example, Plymouth is a nationally significant defence growth location and a house building priority, driven by investment at Devonport. Leicester is a major urban economy facing cross-boundary housing, employment and infrastructure pressures, including unmet housing need. Our decisions today will help those two cities grow, along with others, including Preston, Derby, Nottingham, Exeter, Oxford, Brighton and Hove, and Lincoln. These bigger cities will be crucial in ensuring that our country can build the homes we need.
I am tremendously grateful for all the hard work that councils put in to their proposals, but I appreciate that some Members of this House and some councils will disagree with my decisions. I am sure we can all agree that the hard work of transition to new councils must continue to be a shared endeavour across local and central Government. To protect the services that some of the most vulnerable people in our communities rely on, we all need to get that right.
A broad support offer is in place for councils, including support to councils through our sector advisers and through funding to the Local Government Association. We have already announced £63 million in capacity funding to support the reorganisation process. I am pleased to provide further detail today on how this funding will be allocated. Each area will receive an unprecedented £900,000 per new unitary council in capacity funding. On top of that, we are committing up to £150,000 in supplementary funding, as part of a wider package of support for children’s services, adult social care and public health leadership. Taken together, for every reorganisation area, there will be over £1 million in capacity funding for each new unitary council. This is the first time that reorganisation has been supported in this way, and it shows this Government’s commitment to supporting councils to ensure that we get these reforms right.
The programme will now move forward in line with the timetable already set out, with elections to the new unitary councils scheduled for May 2027, ahead of new councils taking up their powers in April 2028. Today marks a significant milestone for the future of local government, with decisions now taken on 19 out of 21 two-tier areas across England. Reorganising local government is not a debate about where to draw lines on a map or about structures and systems; it is about making real improvements to people’s lives and to the communities they are a part of. This reform programme is ambitious, but it is the right thing to do. I commend this statement to the House.
This is blatant—blatant. These changes, like so many of the Secretary of State’s decisions, have been driven by party politics. He tried to cancel local elections, and he was caught trying to tip the balance in Labour’s favour, but nothing in today’s statement has done anything to dispel the belief that this is purely partisan. Many communities have been left in limbo, while Labour councils have been allowed to redraw the map on which the future elections in which they will be engaged will be fought. Can he honestly say that that will inspire confidence in the integrity of the process?
If the Secretary of State wanted accusations of gerrymandering to be put aside, why on earth did he create such a clearly gerrymandered set of boundaries? The maps speak for themselves. In Devon, he has accepted the proposals put forward by Labour-run Exeter and Plymouth. In Leicester, he has accepted the submissions by a Labour-controlled council. In Nottingham, he has accepted the proposal put forward by the Labour-run city council. I could go on and on, but time does not permit. How on earth can the Secretary of State expect anyone to believe that the process has been politically impartial?
Devolution should be about transferring powers away from Whitehall. It is about giving freedom to succeed to local areas, and for them to keep the reward of that success, creating the conditions for more investment, more jobs and more opportunity, but none of that is dependent on imposing a single organisational model from Whitehall. Unitaries should never be the admission price for a devolution deal, nor should local areas be compelled into so-called strategic authorities simply because the Secretary of State and Whitehall prefer organisational uniformity. Devolution should mean trusting local people to make local decisions.
The Secretary of State says that he is holding councils to the standards of best value, transparency, consultation, good governance and sound decision making, yet by the very same standards he fails his own test, with minimal consultation, partisan judgments and arbitrary decision making. He speaks about stronger councils, yet some of these new authorities will be burdened with crippling debt from the day they are created. In Nottinghamshire, Conservative-run Rushcliffe council is a well-run, financially secure council, yet under his plans it will be carved up with most of its assets transferred to debt-ridden Labour Nottingham city council. How on earth can weakening well-managed councils to prop up bankrupt ones create a stronger foundation for local government?
What of local democracy? The Secretary of State talks with great pride about how many local representatives will be culled in these proposals, but that means decisions taken further away from the communities they affect and planning powers becoming increasingly removed from the very people who have to live with the implications of those decisions.
The Secretary of State complains about two-tier local government, but his own mayoral proposals create two tiers of local government. So please can he inform the House: is two-tier local government good or is two-tier local government bad? He does not seem to know.
What assessment has the Secretary of State made of the democratic deficit? Given the pace at which he is driving the changes, and the fact that a number of the proposals have still not been outlined and will not be until the autumn, what on earth gives him the confidence that they will be implemented in time for shadow elections in May next year? What assessment has he made of the likelihood of judicial reviews further delaying the timetable before 2029?
The statement raises more questions than it answers. If this proves to be the Secretary of State’s final appearance at the Dispatch Box in this role—[Hon. Members: “Hear, hear!”] Although we do not agree, I have enjoyed working with him across the Dispatch Box; but I hope he recognises the mess that he is leaving behind. He cannot believe that he has squandered this opportunity for genuine devolution. Instead, his legacy will be one of taking power away from local communities, imposing an unfair funding review on councils and gerrymandering local government boundaries. I find it difficult to believe that that is a record he will genuinely be proud of.
The right hon. Gentleman talks about debt. Of course, when the Conservative party was running Woking council, it racked up billions of pounds. The Government have had to intervene and write that off because of the severity of that debt. In fact, councils across the country will realise savings of up to £1 billion—that is the councils’ own estimate—that they can then invest in frontline services. That is to the benefit of local people.
The right hon. Gentleman will know that I cannot comment on judicial reviews, but I reassure him and the House that this programme will go ahead, on schedule.
The lack of notice and opportunity to scrutinise the Department’s decisions is also a huge concern. The Secretary of State’s suggestion that local identities are being considered will come as a huge surprise to my constituents in Culham and Clifton Hampden, which, although many miles from Oxford city centre and surrounded by countryside, will be incorporated into Greater Oxford. Many communities and council wards in Oxfordshire will also now be arbitrarily divided between the new unitary councils. Colleagues in Devon worry that rural communities have been ignored at the expense of new unitaries designed to benefit the needs of cities.
There were endless changes of mind about Sussex elections and boundaries, and now, the fact that a decision has not been made about West Sussex has been met with disbelief. The Government promised to work in partnership with local authorities and rebuild the trust that was shattered over the past decade. What assessment has the Secretary of State made of the long- term financial viability of the proposed unitary structures, given that several of the councils being merged risk being financially unviable?
Of course it is necessary to consult, and of course that means that areas will put forward proposals. Today, the Government are responding to those proposals. In the cases of Oxford and Devon, and in the other cases he has referred to, the selected option was chosen because it is the best for economic growth. Right at the start of my statement, I pointed out that despite us having the second-richest economy in Europe, we have seven of the 10 poorest regions in northern Europe. We cannot allow that to continue. We need economic growth. That is how we put more money in people’s pockets, and that is what this Government are focused on.
In the case of West Sussex, where we had a re-consultation, we have received an awful lot of additional information, and I think it is only right to consider that information carefully before coming to a final decision. We owe that respect to the parties, councils and residents’ groups that took the trouble to provide responses.
Will the Secretary of State tell me what on earth makes sense about creating two councils for Nottingham and Nottinghamshire, when official figures show that from day one, one of them will be £147 million better off than the other? Will he explain to my constituents why the Government have backed the option that did not adhere to the strict criteria set out by the Government at the start of this process? Finally—thank you for your forbearance, Madam Deputy Speaker—given his announcement that he will hold off on making a decision on Cambridgeshire and Peterborough, will he re-think on Nottingham and Nottinghamshire, and hold off on making a decision until an agreement can be made in my part of the world?
How does the Secretary of State think we can protect the people of Newcastle-under-Lyme from the debt held by Staffordshire county council, Staffordshire Moorlands district council and Stoke-on-Trent city council? Why should any of my constituents have faith in the proposals, which they do not want? It is utterly unacceptable and a disgrace that the statement has been put to the House on the final day of term, four days before a new Prime Minister takes office. It is not too late to stop and think again. The Secretary of State said a minute ago that he was going to pause to get other proposals right, and I urge him to do the same on this one.
The Secretary of State also mentioned that the election timeline will be stuck to, so when will the structural changes order need to be made for Cambridgeshire to ensure that the elections can be delivered? Finally, he offered the hon. Member for Peterborough (Andrew Pakes) a meeting to further discuss these concerns; will he extend the same courtesy to me?
The way we will measure the benefits of the changes is through improved frontline public services. I have also announced proposals for an outcomes framework and a neighbourhood guarantee, so that my hon. Friend and residents can see for themselves how well their services are performing compared with other councils in the area and across the country.
I simply seek to correct the record. I should have, when I made a contribution in the statement, drawn attention to my entry in the Register of Members’ Financial Interests as a serving Gedling borough councillor. I seek through this point of order to correct the record.
I thank the hon. Member for correcting the record in that way as it did pertain to this particular statement.
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