11/11/2026
Hot on the heels of the Budget, which in local government terms was heavily focused on devolution and housing, MHCLG has provided an update on its review of the current Local Government Reorganisation (LGR) programme.
Perhaps the most significant message arising from the announcement is that government remains firmly committed to the LGR programme. While a number of individual decisions have been revisited and the timetable extended, the policy objective of replacing two-tier local government with unitary structures remains unchanged.
In summary, government has stated that it is "minded to" proceed with LGR in five areas, subject to a further minimum three-week period for representations. The remaining 15 areas are under review, with nine areas seeing previous decisions withdrawn, in addition to the four areas whose decisions were withdrawn in September. Those areas are each to receive £450,000 to cover costs incurred, while the two areas in respect of which decisions have yet to be made are each to receive £500,000.
MHCLG stated that "all options and proposals remain under consideration" and that "every area will have an outcome by early next year".
As part of the announcement, government acknowledged concerns expressed across a number of areas regarding the potential loss of city status, civic identity and associated ceremonial arrangements, and has committed to considering options to protect them.
Local elections in all 15 areas are to go ahead in May 2027, with a revised timetable providing for elections to shadow authorities in May 2028 and the establishment of new councils in 2029.
Whilst the additional time will be welcomed by many authorities seeking greater certainty and more time for transition planning, others may be frustrated that the revised approach could require existing implementation work to be revisited if different structural outcomes are ultimately selected. Authorities that have already invested significant time and resources in implementation planning, governance design, staffing structures and programme mobilisation may now need to reassess aspects of that work pending final decisions.
The additional time does, however, create scope for authorities to focus on areas that are often difficult to accommodate within compressed implementation timetables. In particular, councils will have greater opportunity to consider constitutional and governance arrangements for successor authorities, shadow authority structures, scrutiny and decision-making models, and senior officer appointment processes.
The revised timetable will also provide further opportunity for current authorities to undertake community governance reviews and establish new parish or town councils where appropriate, helping to maintain local democratic representation, preserve civic identity and facilitate the transfer of valued local assets for the benefit of local communities rather than seeing them subsumed within larger unitary structures.
While the review has altered the timetable and reopened a number of decisions, it has not changed the direction of travel. For councils, the challenge now is to balance the additional time available for planning and preparation with the reality that implementation work must continue while the final shape of reorganisation in many areas remains uncertain. The destination appears unchanged, but the route and timetable for getting there have been reset.
Read the Ministerial statement.
Review update letters to local authorities.
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