Rayner withdraws decisions on local government reorganisation in four counties, launches review for 14 other areas

Decisions on reorganisation in Essex, Hampshire, Norfolk and Suffolk and, where relevant, their neighbouring unitary authorities have been withdrawn in light of the new legal advice, while those for 14 other areas are being paused and reviewed.

The review, confirmed by Secretary of State for Housing, Communities and Local Government Angela Rayner this afternoon in Parliament, will test whether proposals for local government reorganisation “meet the priorities of a new administration and a new Prime Minister”.

According to the Ministry of Housing, Communities and Local Government (MHCLG), local elections in May 2027 will “go ahead on existing council boundaries” and the Government “remains committed to effective and sustainable local government and simplifying these structures”.

Reorganisation in Surrey will not be affected by the review and the two new unitary authorities in the area – East and West Surrey – will still go live in April 2027.  

Angela Rayner told MPs this afternoon that she had asked the Minister for Local Government, Devolution and Regional Growth to undertake "a rapid review" of the Local Government Reorganisation programme.

“I have withdrawn the decisions made in March this year for four areas, namely Essex, Southend-on-Sea and Thurrock, Hampshire, Isle of Wight, Portsmouth and Southampton, Norfolk and Suffolk.

"The review will look at the programme as a whole, including the decision that was taken for Devon, Plymouth and Torbay."

Rayner said: "The Prime Minister told the House [of Commons] last week that he was prepared to look at local government reorganisation, and he asked me as his Communities Secretary to do that.

“Throughout this process, the government has listened to representations from members of this house, councils and the public, and I want to be clear [...] how critical this is to me, given how important they are to our democracy and the services they provide for our people.

“But there will always be a wide range of divergent views which means achieving perfect consensus will never be possible."

She continued: “In light of legal advice, I want to satisfy myself firstly, that the right process is in place that 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 the new administration and the new Prime Minister."

Rayner said the Government's legal representatives had notified the courts.

David Simmonds, Shadow Local Government Secretary, said: "The councillors and communities they represent are looking aghast at yet another shambolic U-turn from this government.

"The Secretary of State has already told the house that she is not satisfied that the process followed by her predecessor was lawful. Can she tell the House why she is not satisfied that it was lawful?"

Simmonds called on Rayner to put all the non-privileged documentation and correspondence in the public domain.

The Government LGR programme has faced a series of legal challenges in recent months.

Last week, South Kesteven District Council became the latest local authority to send a pre-action protocol letter to the Secretary of State for Housing, Communities and Local Government over the Government’s decisions on LGR.

A spokesperson for the Local Government Association 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.”

The LGA called on ministers to “set a clear timetable and ensure councils are not left to pick up the bill”.

Responding to the announcement, Cllr Sean Matthews, Chair-Elect of the County Councils Network, said: “Since the reorganisation programme was announced, the County Councils Network (CCN) has been clear that it would support reorganisation where it generated significant savings, protected local services, preserved local identity and provided a strong impetus for economic growth.

“Many of our members had serious concerns and felt the decisions taken over the last six months would not deliver any of these aims – with the previous Starmer government shifting substantially from its own criteria to create new authorities covering populations of 500,000 or more. Others were concerned how decisions were made, the robustness of the process and the underpinning evidence.”

He added that the CCN was pleased that ministers had taken on its and its councils’ concerns on board by announcing a pause and review of the programme.

Cllr Matthews said: “Many of our members will be relieved that the decisions they viewed as damaging to local services and financially unsustainable have been withdrawn or are being reviewed. For our councils that do want to proceed with reorganisation in their area, we will support them in their next steps and we will be seeking further clarity from government in the coming days. 

“With the government clearly listening to our concerns, we now stand ready to work with ministers. Where reorganisation is desired, this review must ensure a robust, legally compliment process in line with the original criteria. This should include establishing realistic implementation timescales, and ensuring that any further decisions only create sustainable new unitary councils capable improving local services.

“It is also vital that this pause does not mean the momentum is lost on devolution and rewiring the state, with county councils the vital building blocks for growth. Agreement must be reached by consent, and for areas that want devolution, government should continue with its pledged timescales of establishing strategic authorities in all places by the end of 2028.”

Cllr Richard Wright, Chair of the Local Councils Network, said: “Councils have been working flat-out on making a success of reorganising local government so today’s announcement is therefore very disappointing and will come as a shock to councils up and down the country.

“We’ve received repeated assurances that the new administration stood by decisions taken by its predecessor, so the announcement comes as a surprise and does little to build confidence in MHCLG’s decision-making in relation to local government.

“[...] If reorganisation is to be restarted, it’s essential that new councils remain close to communities and are part of a cohesive reform of local public services which makes them more accountable to local people. In addition, we want to work with the Government on its proposals for devolution, bringing power from Whitehall to local communities, so that decisions that affect local residents are made closer to home.”

Laura Hughes, Partner and Head of Public Law at Browne Jacobson, said: “It’s been clear from the moment that Andy Burnham stepped foot in No 10 that devolution is the number one priority when it comes to the future of local government.

“The Prime Minister wants every local area to be armed with the powers he enjoyed as Greater Manchester Mayor, while further financial resources are coming their way soon with the Chancellor today confirming he will set out a roadmap to fiscal devolution at the Budget.

“All this will take up plenty of officer time within authorities that are already stretched, making it not just ambitious but probably unachievable to run LGR and devolution streams in tandem. It therefore felt somewhat inevitable that local government reorganisation would be deprioritised, particularly with the threat of judicial reviews in some areas where there has been widespread local opposition to decisions."

Hughes added: “Government’s reluctance to publicly disclose information relating to legal claims that are in motion or threatened by the 14 areas where LGR decisions were recently made pointed to a nervousness in Westminster about how those decisions were made.

“The emphasis on ‘privileged’ legal advice being given to government suggests that today’s announcement reflects a decision based on legal risk. However, this decision is also politically convenient for a Prime Minister looking to focus more on devolution as it effectively creates the space to do just that."

She suggested that within the local government sector, there would be "a mix of frustration at possible wasted costs and further uncertainty, and relief that the unrealistic timetables have been relaxed".

Hughes said: "Questions remain on the length of this pause, and whether it really is just a pause or a full stop.

“We now expect the Government to focus on going further and faster with devolution. We have previously seen government put strategic authorities in place on short timetables, so it’s possible that if work starts now that some areas could have mayoral elections in May 2027.”

Lottie Winson