Devolution and local government reorganisation FAQs and glossary

A: Local government reorganisation is the process in which the structure and responsibilities of local authorities are reconfigured. In the context of the English Devolution White Paper, the Government have set out plans to move away from the current two-tier system of district and county councils. The Government has indicated that for most areas this will mean creating councils with a population of 500,000 or more, but there may be exceptions to ensure new structures make sense for an area, including for devolution, and decisions will be on a case-by-case basis. 

A: Devolution is the transfer of powers and funding from national to local government. Local government reorganisation is about how the powers and funding that sit with local government are organised between councils. 

A: There are different timelines for areas depending on when their proposals are due, when decisions are taken, and it will also be dependent on the complexity of delivering the new unitaries. Surrey councils are working to a shorter timeline than all other LGR areas.

For areas on the Devolution Priority Programme (DPP) and all other areas, the most ambitious indicative timeline is based on asking for proposals by September 2025 for DPP areas and by November 2025 for all other areas, then working towards mayoral elections in 2026 for DPP areas alongside other scheduled local elections, and holding shadow unitary elections in May 2027 and new unitary councils going live in 2028. 

On devolution, for areas not on the DPP, MHCLG will work with and support areas to access devolution in the future.

A: Unitary authorities are a single tier of local government responsible for all local services in an area. They may cover a whole county, part of a county or a large town or city. For example, Cornwall Council, Nottingham City Council and Reading Borough Council are all unitary councils. Large urban areas may have a unique form of unitary authorities called metropolitan councils, such as Oldham or Doncaster. London boroughs are also unitary authorities. 

A: The Government acknowledged that for some areas, the timing of elections affects their planning for local government reorganisation. To help manage these demands, the Government considered requests to postpone local elections, as submitted on Friday 10 January 2025. 

According to the Government’s statement on the postponement, these areas will now work towards local government reorganisation and develop plans for new unitary councils. Shadow elections for these new unitaries should take place in May 2026. 

*The Government agreed that, for Surrey, reorganisation is essential to unlocking devolution options and a delay to elections would help deliver both reorganisation and devolution to the most ambitious timeframe. Surrey’s path to devolution is significantly dependent on Local Government Reorganisation.

Visit the delays to local elections page for further information. 

A: The Order made consequential amendments to the Local Government Boundary Commission for England legislation implementing boundary reviews to the effect that the new boundaries expected this year will come into effect when the postponed elections take place in 2026. By-elections held before 7 May 2026 must be held on the current boundaries. 

A: When local council elections occur in an area without concurrent elections for Mayoral Combined Authorities (MCAs) or other regional bodies, the MCA is still partially bound by the pre-election period rules. That is because MCAs are local authorities within the meaning of section 6 of the Local Government Act 1986. They are therefore subject to the same publicity restrictions in section 2 of the Local Government Act 1986 and are required by section 4 of that Act to have regard to the Code of Recommended Practice’s principles of impartiality and fairness during the pre-election period. That is not confined to publicity affecting MCA elections.

More detailed information is in our Pre-election period guide.

A: A shadow authority is elected to carry out the functions of a new unitary council until that authority formally comes into effect. This is commonly called “vesting day”.  

A: The Government’s Order makes no provision for the postponement of parish or town councils. This means parish elections scheduled to take place in May 2025 will take place. 

A: In webinars with the sector, Government has indicated that it will consider what support it is able to provide councils for any delays to elections.  

A: Yes, an elected member of a local authority can stand in the shadow authority elections. If elected to the new unitary council, this will be for a new term as set out in the Structural Changes Order. They can simultaneously serve out the remainder of their term as a councillor for the existing local authority until such time as the existing local authority is abolished – this is likely to be for a reduced term.  

A: The Structural Changes Order (legislation giving effect to a proposal for unitary local government in an area) will set out arrangements for elections to new shadow councils agreed with the area. Typically, the first elections take place on electoral arrangements based on existing unitary council wards and county electoral divisions, and in some cases, parishes. The names of wards and the numbers of councillors to be elected are specified in the legislation. After the first elections, it is usual for the Local Government Boundary Commission (England) to undertake a boundary review to put in place longer-term arrangements. 

A: The government’s starting point is for all elections to go ahead unless there is strong justification.

The Government intends that in May 2026, Mayoral elections for new strategic authorities will take place, alongside those district and unitary elections already scheduled and those elections postponed from May 2025. 

For any area in which elections are postponed, the Government will work with areas to move to elections to new ‘shadow’ unitary councils as soon as possible as is the usual arrangement in the process of local government reorganisation.

A: The Local Government Association (LGA) encourages all councils to support their continuous improvement by engaging with sector-led support, including corporate peer challenge. The Best Value standards and intervention statutory guidance sets out an expectation that all local authorities will have a corporate or finance peer challenge at least every 5 years.  Where councils are preparing for LGR, a corporate or finance peer challenge will help to identify issues which should be considered and addressed in preparing for LGR in relation to leadership, governance, finance, and capacity.  There is also the potential for the corporate peer challenge to have an additional focus on readiness for LGR. 

A: In preparing for LGR it is important that each authority has a clear understanding of its strengths, risks and areas for improvement, with particular reference to leadership, governance, finance and capacity.  These will continue to be and become even more relevant in the context of LGR – either when planning for transition or in understanding the resources and challenges which will come forward into the new authority.  A corporate peer challenge will identify those strengths, risks and areas for improvement across these key areas, and can be targeted to focus particularly on preparedness, capacity and capability for LGR.  The report can also provide helpful insights and reflections about opportunities, risks and priorities for any new unitary. 

A: The LGA brings together teams of member and officer peers to deliver constructively challenging and robust messages to support improvement and provide assurance.  Peers are drawn from councils across the country, bringing a range of expertise, both in terms of the ‘core’ themes such as finance and governance, and with specific experience of LGR. 

A: By working in partnership with the sector, the LGA understands the pressures faced by councils and the capacity and resources required to undertake significant transformation such as LGR.  CPC is delivered by the sector for the sector, using experienced member and officer peers, so we understand. We work with councils to minimise the burden of preparing for a CPC, using existing documentation wherever possible.  Feedback from councils which have received CPCs demonstrates CPCs deliver excellent outcomes for councils and their communities. 

A: Visit the LGA’s corporate peer challenge webpages or speak to your Principal Adviser.

A: As set out in the White Paper, new unitary councils must be the right size to achieve efficiencies, improve capacity and withstand financial shocks. For most areas this will mean creating councils with a population of 500,000 or more, but there may be exceptions to ensure new structures make sense for an area, including for devolution, and decisions will be on a case-by-case basis.

A: As set out in the White Paper, the case for local government reorganisation is that there are significant opportunities available to areas from the creation of suitably sized unitary councils responsible for local government services for that area. Unitarisation can cut wasteful duplication of bodies, reduce the number of politicians and reduce fragmentation of public services.

Efficiencies: In 2020 a PwC report, “Evaluating the importance of scale in proposals for local government reorganisation”, for the County Councils Network, estimated that reorganisation of the then 25 two-tier areas to a single unitary structure would have a one-off cost of £400 million, with the potential to realise £2.9 billion over five years, with an annual post-implementation net recurring saving of £700 million. The unitary proposals submitted in relation to the most recently established unitary councils identified a range of efficiencies that could be achieved where council services are brought together in one organisation. For North Yorkshire Council, established in April 2023, unitarisation has enabled the council to manage financial pressures through structural changes and service transformation which are expected to achieve more than £40 million in savings by March 2026.

A: As set out in the 5 February letter from the Minister for State for Local Government and English Devolution, all councils in two-tier areas and their neighbouring small unitary authorities have been formally invited to work together with other council leaders in the area to develop a proposal for local government reorganisation. That letter set out the guidance for proposals for unitary local government, including criteria, which must be followed. 

Following the submission of interim plans, areas will receive feedback summarising how proposals might need to be developed according to those criteria, to support councils as they build their case and develop their final proposals which are due later this year.

A: As set out in the White Paper, we know people value the role of governance at the community scale and that can be a concern when local government is reorganised. We will therefore want to see stronger community arrangements when reorganisation happens in the way councils engage at a neighbourhood or area level. We will also rewire the relationship between town and parish councils and principal Local Authorities, strengthening expectations on engagement and community voice.

A: As set out in the 16 December letter from the Minister for Local Government and English Devolution, his intention is to formally invite unitary proposals in January 2025 from all councils in two-tier areas, and small neighbouring unitary councils. In this invitation, the Minister will set out further detail on the criteria that will be considered when taking decisions on the proposals that are submitted to Government.

A: As set out in the White Paper, we recognise that reorganisation will create upfront costs and additional pressures for councils alongside their crucial responsibilities to communities, including caring for some of the most vulnerable in society. It is vital that new unitary councils get off to a good start, so we will work closely with local leaders to explore what support they might need to develop robust proposals and implement new structures, including taking decisions to postpone local elections where this will help to smooth the transition process. We will learn from the experience and successes of others who have been through the process.

A: As set out in the White Paper, it is for councils to develop proposals for new unitary councils which are the right size to achieve efficiencies, improve capacity and withstand financial shocks.

A: For areas covering councils that are in Best Value intervention and/or in receipt of Exceptional Financial Support, proposals must additionally demonstrate how reorganisation may contribute to putting local government in the area as a whole on a firmer footing and what area-specific arrangements may be necessary to make new structures viable.

In general, as with previous restructures, there is no proposal for council debt to
be addressed centrally or written off as part of reorganisation. For areas where
there are exceptional circumstances where there has been failure linked to capital practices, proposals should reflect the extent to which the implications of this can be managed locally, including as part of efficiencies possible through reorganisation.

A: The invitation letter on 5 February 2025 explained that it is essential that councils continue to deliver their business-as-usual services and duties, which remain unchanged until reorganisation is complete. The 2024 Guidance on Best Value Standards and Intervention describes the characteristics of a well functioning authority, and in relation to handling assets the sections on governance, use of resources, service delivery and partnerships and community engagement are particularly relevant.  

A: MHCLG officials will follow up with areas to discuss their interim plans, provide feedback and understand the collaboration and information sharing arrangements. The department will be speaking with the areas on the Devolution Priority Programme during April and other areas after the local elections in May. 

A: Other government departments are part of the process for putting together feedback on interim plans led by MHCLG. MHCLG will provide consolidated feedback from the Government. 

A: MHCLG officials are reviewing interim plans and will provide feedback summarising how proposals might need to be developed according to those criteria, to support councils as they develop their final proposals which are due later this year. The submission of interim plans is not a decision point. It is the next stage in the process and enables councils to engage with the government on the issues that matter locally and receive support to develop their full proposals. 

A: There are no decision-points prior to the submission of final proposals. After receipt of interim plans, MHCLG officials will follow up with areas to discuss their interim plans, provide feedback and understand the collaboration and information sharing arrangements. The department will be speaking to Surrey as a priority, then with councils on the Devolution Priority Programme during April and other areas after the local government elections starting at the end of week beginning 28 April. For Surrey, the deadline for proposals is 9 May and for other areas later this year in September or November.  

MHCLG will then continue to work with areas to support them to develop final proposals ahead of deadlines later this year.  

A: The English Devolution White Paper was clear that the Government intends to facilitate a programme of local government reorganisation for all two-tier areas, and expects all invited areas to develop proposals.

A: HM Treasury and other government departments will be part of the review process for final proposals. The Secretary of State makes the formal decision whether or not to implement a proposal, according to Part 1 of the Local Government and Public Involvement in Health Act 2007. 

A: For those areas where Commissioners have been appointed by the Secretary of State as part of the Best Value Intervention, their input will be important in the development of robust unitary proposals.

The Minister of State for Local Government and English Devolution has asked those Commissioners to engage in the development of proposals and provide their input, in their role supporting councils to deliver their duty of best value. Their expert views as Commissioners will be essential to ensure that the proposals that are developed are robust. 

A: Existing district areas should be considered the building blocks for proposals, but where there is a strong justification more complex boundary changes will be considered.  

There will need to be a strong public services and financial sustainability related justification for any proposals that involve boundary changes, or that affect wider public services, such as fire and rescue authorities, due to the likely additional costs and complexities of implementation.   

Following the submission of proposals to the government, we will consider proposals carefully before taking decisions on how to proceed. 

A: The Government has committed to delivering an ambitious programme of local government reorganisation for all two-tier areas during this Parliament. However, specific timings for individual new unitary councils will depend on what proposals are received later this year. Based on the most ambitious indicative timeline, vesting day for new unitary councils would be April 2027 for Surrey and April 2028 for other areas. 

A: The LGBCE has a rolling and flexible work programme and is aware that there may be implications for its planned programme of work flowing from the White Paper.

The LGBCE can carry out reviews of local authorities once they have been established in law. The review process that the LGBCE follows starts with determining the number of councillors the local authority requires, before moving on to look at the number, name and boundaries of wards. Further information and guidance on the LGBCE’s review process can be found on their website.

A: £7.6 million will be made available in the form of “local government reorganisation proposal development contributions”, to be split across these 21 areas. Further information will be provided on how this will be allocated and Government intend to make payments as soon as possible.

A: These funding reforms are part of a comprehensive set of reforms for public services to fix the foundations of local government. This will be done in partnership with the sector and on the principle of giving forward notice and certainty to allow time for councils to plan for the future.  

We will update and improve the approach to funding allocations within the Local Government Finance Settlement by allocating funding to ensure that it reflects an up-to-date assessment of need and local resources.

We invited views from the local government sector through the local authority funding reform objectives and principles consultation, which was open from 18 December – 12 February. It sought views on the approach to local authority funding reform to be implemented via the Local Government Finance Settlement from 2026-27, including the approach allocating funding and resetting the business rates retention system. 

The Spending Review will be the process for making decisions on future local government funding in the round. Following the Spending Review, Government will set out further details on funding reform, including the approach to places proposing to undergo reorganisation.