Local Government Reorganisation Placed on Pause

Plans for the reorganisation of local councils across the UK have been paused for review, whilst similar plans for Essex, Hampshire, Norfolk and Suffolk have been withdrawn. The review has been launched in light of new legal advice, with Angela Rayner telling MPs  “I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law”.

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.”

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The plans for the reorganisation were first put forward under Kier Starmer’s government, which the government argued would allow for power to be further devolved from Westminster and centered in councils closer to their communities. The plans aimed to simplify the already complex local government structure across England, abolishing smaller district level councils and bringing power together under unitary councils for larger towns and some cities. However, critics of the plan argued it would be an expensive plan that would divert resources away from the councils with the closest tie to their local community.

Tom Arnold, policy manager for regional engagement and devolution at CIH, said:

“The announcement that local government reorganisation is effectively on hold will cause significant concern amongst staff in those local authorities affected by the decision. The government confirmed its plans just a matter of weeks ago, before parliament’s summer recess, and officers have been working hard to meet tight deadlines to ensure the new councils are up and running.

“Whilst we understand the government’s need to ensure that the decisions made are legally robust and align with its wider devolution agenda, the uncertainty this pause creates will add further pressure to already stretched local authorities and potentially delay important housing and planning decisions. We encourage the government to clarify as soon as possible whether reorganisation in the affected areas will be reviewed, cancelled or simply paused until a later date.”

There are a total of 14 areas where the reorganisation has been placed on pause for review, which are:

• Derby and Derbyshire
• Devon, Plymouth and Torbay
• East Sussex and Brighton
• Gloucestshire
• Hertforshire
• Kent and Medway
• Lancashire, Blackburn with Darwen and Blackpool
• Leicester, Leicestshire and Rutland
• Lincolnshire, North Lincolnshire North East Lincolnshire
• Oxfordshire  and West Birkshire
• Staffordshire and Stoke-On-Trent
• Warwickshire
• Worcestershire

Karen Carter, public sector director at public procurement specialist Pagabo said: “This week’s announcement adds another layer of uncertainty for councils that have already spent months planning for reorganisation. Four areas have had their plans withdrawn, another 14 are paused pending review, and the 2027 elections will now be fought on existing boundaries.

“For the teams involved, that’s a lot more work suddenly required without a clear landing point. But the fundamentals haven’t changed. Schools still need building, homes still need delivering, and estates still need maintaining. None of that waits for a structural decision in Whitehall. The risk in moments like this is that authorities press pause on everything, not just reorganisation, and lose a year of delivery to a decision that isn’t theirs to make. It’s vital that local authorities remember that successful transition will depend not only on the governance design, but on collective leadership and the ability to maintain shared action while navigating the road ahead.

“Our advice remains the same as prior to this latest government announcement. That is to keep statutory service delivery moving and focus on decisions that will be unaffected by reorganisation. This means procuring through compliant, flexible routes that transfer cleanly to whatever structure eventually emerges. Similarly, ensure contract, asset and supplier data is in order because that is the groundwork every future authority will need regardless of how new boundaries are formed. Finally, keep the relationships with your supply chain warm so that you can move quickly when clarity comes.

“Uncertainty is not the same as standstill. The authorities that come through this best will be the ones that use the pause to get their house in order – rather than waiting to be told what shape they’ll be.”