The Labour Government's plans for a major reorganisation of councils across England have been paused after 'updated legal advice' prompted the Ministry of Housing, Communities & Local Government (MHCLG) to announce a review of the programme.

Reports suggest the Government received new legal advice that the plans may not comply with the law.

The local government secretary, Angela Rayner, announced that the ministry would be undertaking a review of the Local Government Reorganisation programme and has withdrawn the decisions made in March to create new unitary councils in four areas:

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

In the letter, Jim McMahon, minister for local government, devolution and regional growth, said that he will lead the review and it will ‘look at the programme as a whole', including a review of the decisions made in July, when the government announced the formation of 34 new unitaries in 14 areas with two-tier local government.

‘Cambridgeshire and Peterborough and West Sussex, where decisions have not yet been taken,' he added, ‘will be considered as part of the review. The new councils for East Surrey and West Surrey are unaffected and outside of this process because they are already established in law.

‘Until this review has concluded, I am asking you, together with your partners, to cease work on implementing the decisions that were announced in July. I want to acknowledge the work that your teams have undertaken on local government reorganisation. This decision in no way reflects the work done locally in developing plans, building consensus where it can be found, and marshalling your organisation and partners for the change ahead. But I do believe this reduces the risk of nugatory work if, after further review, we decide to change course.'

The letter added that, while the current timetable for reorganisation ‘envisages local elections scheduled for May 2027 being replaced by elections to the new councils', this review means that these elections will go ahead ‘to existing council boundaries'.

A frustrated sector reacts

A spokesperson for the Local Government Association, which represents councils, said: ‘Councils across the country will hold different views on the local government reorganisation (LGR) programme, for what it means for their areas, and the announcement of today's review. But there is no excuse for the Government's mishandling of this process.

‘Today's announcement, however, will have caused significant uncertainty, after councils have invested scarce public money and countless hours in the government's LGR programme. People's jobs, lives and wider commitments have been affected. Staff, councillors and their families cannot be expected to put their lives on hold while ministers undertake a review which is a mess of their own making. Particularly at a time when local services remain under real pressure, this is no way to treat local government.

‘Councils need certainty to plan how to deliver vital services to residents and meet demand pressures, and, as we said in July, their expert view needs to be embedded in LGR decision-making. Ministers must now set a clear timetable and ensure councils are not left to pick up the bill.

‘This review must therefore be used by government to work in true partnership with councils to provide clarity in putting right its own mistakes. The LGA stands ready to use our power to convene our membership councils to ensure any future reform is shaped locally and based on what works for residents.'

In a statement following the announcement, West Sussex County Council said: ‘We are frustrated by the latest news and will be meeting with ministers to understand what is behind this decision and what the timetable is for going forward.

‘Our concern now is to ensure our staff and members are kept up to date with the latest details in what continues to be an unsettling time for them. We will also ensure our residents, communities and businesses are kept fully aware.

‘In the meantime, we urge the Government to finalise the details on the LGR programme so we can finally know when this will be happening and what the decision is for the future of local Government in West Sussex.'

Councillor Peter Harris, the leader of Essex County Council, commented: ‘This unwanted, unnecessary and financially unhinged reorganisation of Essex's councils is over.

‘Thanks to us being the first to stand up to the Government, we've succeeded today in saving local taxpayers millions in spending that would have delivered a new system of councils which the Government have admitted, as a result of today's announcement, was wrong. We were not against change, but we were against the Government's plan for five new councils.

‘Now we've succeeded in curtailing the Government's plans, we can now get back to what residents elected us to do – Reforming Essex, providing the best possible services at the lowest possible cost.'

Cllr Steve Jarvis, leader of Hertfordshire County Council, stated: ‘The Government's decision to create four new unitary authorities in Hertfordshire is not in the best interests of our county and I am pleased that the Government has decided to review it.'