Minister urges councils not to submit competing reorganisation plans as Government issues statutory invitation to two-tier areas to develop unitary proposals
The Ministry for Housing, Local Government and Communities has urged councils set to embark on reorganisation to make "every effort to work together" to submit a single proposal to the Government rather than competing proposals.
The call came in a set of statutory invitation letters to council leaders sent on Thursday (6 February), from the local Government and English devolution minister, Jim McMahon, which set out Whitehall’s expectations for reorganisation as well as a series of deadlines for regions to follow.
The minister said: "It is not in council taxpayers' interest to devote public funds and your valuable time and effort into the development of multiple proposals which unnecessarily fragment services, compete against one another, require lengthy implementation periods or which do not sufficiently address local interests and identities."
However, cases where areas cannot jointly develop and submit a joint proposal "will not be a barrier to progress," and the Government will consider any suitable proposals submitted by the relevant local authorities, McMahon added.
McMahon emphasised that councils must continue to deliver their services and duties, which remain unchanged until the reorganisation is complete, including progress towards an up-to-date local plan.
On the costs of the programmes, the letter said: "Considering the efficiencies that are possible through reorganisation, we expect that areas will be able to meet transition costs over time from existing budgets, including from the flexible use of capital receipts that can support authorities in taking forward transformation and invest-to-save projects."
Turning to indebted councils, McMahon's letter said that the default position is that assets and liabilities remain locally managed by councils, "but we acknowledge that there are exceptional circumstances where there has been failure linked to capital practices".
It continued: "Where that is the case, proposals should reflect the extent to which the implications of this can be managed locally, including as part of efficiencies possible through reorganisation, and Commissioners should be engaged in these discussions. We will continue to discuss the approach that is proposed with the area."
The non-priority regions have been given a deadline of 21 March 2025 to submit their interim plans, ahead of a final deadline of 28 November for their full proposals.
These areas include:
- Cambridgeshire and Peterborough,
- Derbyshire and Derby
- Devon, Plymouth, and Torbay
- Gloucestershire
- Hertfordshire
- Kent and Medway
- Lancashire
- Blackburn and Blackpool
- Leicestershire, Leicester and Rutland
- Lincolnshire
- North Lincolnshire and North East Lincolnshire
- Nottinghamshire and Nottingham
- Staffordshire and Stoke-on-Trent
- Oxfordshire,
- Warwickshire
- Worcestershire
In regions that have been selected for the priority programme, councils must come together and submit their full proposals by 26 September.
In the run-up to the September deadline, the Government said that councils in the priority scheme should submit an interim plan by 21 March 2025 and that the areas should conduct mayoral elections for their strategic authority in May 2026.
Legislation will be made to postpone the local elections in priority areas from May 2025 to May 2026, the letter added.
The Government will also consult across priority areas in February and March on the benefits of devolution.
Priority areas include:
- East Sussex and Brighton
- Essex
- Southend-on-Sea and Thurrock
- Hampshire
- Isle of Wight
- Portsmouth and Southampton
- Norfolk
- Suffolk
- West Sussex
Surrey meanwhile has its own timeline, with requirements that it submits an interim plan by 21 March 2025 and a full proposal as soon as 9 May.
In his letter to the Surrey councils, McMahon said: "Given the urgency of creating sustainable unitary local government for Surrey, I have decided to make legislation to postpone the local elections in your area from May 2025 to May 2026 to provide additional capacity for speeding up reorganisation."
Adam Carey
