Local government reorganisation

The White Paper

The White Paper proposes a programme of local government reorganisation for all two-tier areas as well as for smaller or failing unitary areas. It envisages that for most areas, unitary councils will have a population of 500,000 or more, but that there may be exceptions to this general position.

To progress with reorganisation, the White Paper provides that proposals will be invited from areas and that existing councils will be expected to work together to develop these and bring forward the changes as quickly as possible. The areas that will be the priority for central government will include where reorganisation can unlock devolution, where areas are in agreement and keen to move quickly, or where reorganisation can help to address wider failings.

Any proposals for reorganisation are expected to complement any plans for devolution and should not delay devolution. Instead, reorganisation plans are to be sequenced alongside devolution plans.

In terms of timeframes, we have seen an outline timetable which suggests that except where reorganisation will unlock devolution, proposals will be asked to be submitted in the autumn of 2025. Consultation would take place through the remainder of the calendar year and into 2026, with new unitary areas coming into existence in April 2027 or 2028. It is less clear how much more quickly things may progress for areas where unitisation would unlock devolution.

The White Paper makes reference to recognising the upfront costs of reorganisation and the need to work closely with leaders to explore the support they may need to enable this. This is indicative that for priority areas or those that take steps quickly to move towards reorganisation, central government funding may be made available.

The Government has also indicated that it would be willing to postpone May 2025 elections where to do so would ease the transition process. A number of areas have been reported to have requested this.

Legislative framework

The Local Government and Public Involvement in Health Act 2007 (the ‘2007 Act’) provides the legislative basis for unitisation.

Under section 2 of the 2007 Act, the Secretary of State (‘SoS’) may invite a ‘Principal Authority’ (either a county council or district council) in England to put forward a proposal for a single tier of local government. This proposal can comprise: 

• A single tier of local government for the whole of the county (Type A proposal);
• A single tier of local government for a district (or more districts) within the county (Type B proposal);
• A single tier of local government for one of the above that also includes one or more relevant adjoining areas (e.g. all or part of an adjoining county area) (Type C Proposal);
• A combination of the above Types B or C proposals.

Up until 25 January 2008, the SoS was also able to direct principal councils to bring forward a proposal, which meant that the SoS could effectively force unitisation where proposals were not made voluntarily. However, the provision in the 2007 Act expired on 25 January 2008 and so this kind of direction is not currently available to the SoS. The indications in the White Paper are that the Government will reintroduce this power of direction in due course – although the 2007 Act will need to be amended to enable this. This is likely to be done in the English Devolution Bill, which we suspect will be introduced later in 2025, and not come into force until at least 2026.   

Proposals under section 2 of the 2007 Act do not require a consensus from every authority affected by it. However, where a proposal is made jointly by every authority, the requirements on the SoS to consult are reduced to exclude consultation with every authority affected (see below). 

Subject to consultation requirements, following the receipt of a proposal under section 2 of the 2007 Act, the SoS may implement the proposal, with or without modification under section 7 of the 2007 Act. They may also seek advice from the Local Government Boundary Commission (‘Commission’) who may make an alternative proposal which the SoS may implement with or without modification. However, there is no obligation on the SoS to act on a proposal. 

If the SoS seeks advice from the Commission, they may not make an order or decision before six weeks from the advice being requested. There are no other specific timescales to which the SoS must adhere when taking a decision, but the SoS must consult with authorities affected by the proposal (other than those which made it) and such other persons as they think appropriate before reaching a decision.