Local Government Reorganisation

Baroness Pinnock Excerpts

Tuesday 21st July 2026 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I thank the Minister for the opportunity to ask questions on this Statement. On these Benches, several of us have run unitary councils. We recognise the potential for improved efficiencies and better delivery for residents. However, that must be done on the basis of genuine communities and geographies, at a scale capable of delivering meaningful efficiencies and with the true consent of residents.

The Government set out clear principles at the beginning of this process: a scale of around half a million people, respect for existing boundaries and local consent. Yet looking at the proposals before us today, it is difficult to conclude that those principles have been applied in practice, with populations ranging from nearly 700,000 down to 170,000, the breaking up of existing district councils, and a lack of local support and consent.

Rather, the common thread that seems to run through the proposals is a focus on the needs of largely Labour-run city councils to the detriment of the rest of those counties. The Government have accepted the proposals of Leicester, Lincoln, Nottingham, Oxford, Plymouth and Exeter, among others, despite unanimous opposition from the remaining councils in those areas. Is this just about rescuing badly run Labour councils and facilitating cities shifting their housebuilding to the neighbouring green fields?

I highlight Devon, where the expansion of Exeter and Plymouth is necessitating the break-up of several district councils and will leave what can best be described as an orphan Devon coast and countryside council. This will be a unitary for a population of only 260,000 but spread over a vast rural area, stretching from Kingsbridge on the north coast to Sidmouth on the south coast—a journey of two hours or so by car, and a similar journey from east to west. This is setting up a council to fail. The situation is similar in Leicestershire, Lincolnshire, Oxfordshire and Nottinghamshire. As my honourable friend in the other place, the shadow Secretary of State, said, this appears to be gerrymandering for political benefit, not delivering for residents.

Ministers have repeatedly stated that councils should meet the standards of transparency, consultation, good governance and sound decision-making. Yet many communities and councils are asking themselves, have the Government applied those standards to themselves in reaching these decisions?

Having run a unitary council with a population of just under 300,000, I know that scale truly matters in key services such as adults’ and children’s social care and services such as highways, which will represent nearly 80% of the expenditure of these new unitary councils. We succeeded because we were well-run, but it was a struggle. No doubt my noble friend Lady Scott will tell Members here about the success of Wiltshire Council, which had the benefit of being substantially larger.

Breaking up counties into smaller units of 300,000 or less will cause significant dis-synergies, particularly following government funding cuts for many councils. How many more councils does the Minister expect will require exceptional financial support as a result of these changes? And that is before the impact of the disruption, as councillors and officers focus on the uphill of reorganisation, exacerbated by the break-up of district councils, rather than doing the day job of focusing on delivering for their residents.

It is particularly striking that these concerns are not confined to this side of the House. In the other place, Liberal Democrat Members have complained about things being “done to” and not “done with”. Even Labour Members themselves have objected to decisions affecting their own areas. Others have questioned why coherent communities were being split, why some selected proposals appeared not to meet the Government’s own criteria and why areas with such strong local identities are being carved up to fit the new structures.

Devolution should be about empowering local communities, not imposing structures from Whitehall. Reorganisation should be a means to an end, not an end in itself. If local government reform is to command public confidence, at the very least it should be transparent, consistent and demonstrably fair.

Can the Minister therefore explain why the Government departed from their original principles on population size, retaining boundaries and financial sustainability? What objective criteria were applied when choosing between competing local proposals? Why were proposals that split established communities or transferred areas into expanded city authorities preferred over alternatives? Have the Government truly examined the impact on the delivery and viability of those essential social care services that support some of the most vulnerable in our communities? What steps will the Government now take to reassure communities that these decisions have been taken in the interests of effective local government rather than political convenience? Can the Minister assure the House that these proposals are financially viable and will not result in the need for more exceptional financial support? Lastly, what will be the impact of the almost inevitable issuance of JRs?

[Baroness Pinnock (LD)]

My Lords, there are some deeply worrying elements in the Statement. First, it was issued on the final day before the Commons Recess. A momentous decision of that purport should be the subject of detailed scrutiny but that has been deliberately avoided. Secondly, the announcement has been made by a Minister who then resigned from the Government—it was his final throw of the dice. So this announcement is discredited before the details are even considered.

I trust that the new Minister for Local Government will make it her first task to reconsider the implications of these decisions. It is imperative that Angela Rayner does so, because the decisions that have been announced fail to meet the test of enhancing devolution and democracy or of creating new local authorities that will be financially sustainable. The claim is that creating unitary authorities will put an end to two-tier councils, but, at the same time, the Government intend to create an additional tier of local governance in the shape of mayoral authorities, so two tiers will remain.

The decisions that the Minister made about the boundaries are controversial. Some have described them as gerrymandering, and there seems to be no other explanation in some instances. For example, Devon, which has already been referenced by the noble Lord, Lord Jamieson, has been divided into four authorities—three are relatively small councils in geographical terms, based on Plymouth, Exeter and Torbay, each with a population of around 300,000, and the fourth is the rest of rural Devon, with a scattered rural population with no obvious centre—but Gloucestershire is to have one council serving a population of 670,000 people. Can the Minister explain how this huge range of population sizes is consistent with the parameters that were set by the Government or with creating genuine local democracy?

The argument made in the Minister’s Statement is that there will be 3,000 fewer councillors. From my perspective, it is shameful to be proud of reducing the number of elected representatives. Democracy has to enable electors to feel that they have access to local decision-makers and can influence local decisions. Reducing the number of councillors means increasing the size of wards and making councillors more remote from the people they represent, so, on the test of enhancing democracy and enhancing devolution, these decisions have failed.

Then there is the claim that there will be cost savings by having fewer councillors and fewer council officers. That is a claim that government always makes, but it is not supported by facts. For example, in Devon, the previously single social care model for the whole country will be required to divide into four units, and financial benefits of the model will drop sharply. Very large councils of over 400,000 population see costs per head rise and the financial benefits lost, yet the Government have created several councils way above the 400,000-population size.

The Minister may be able to explain the financial argument with details omitted from the Statement, and I look forward to that if she has those details. In the Statement, the Government have admitted that they have failed in the task of making decisions on Cambridgeshire & Peterborough and West Sussex. When will those decisions be made? Meanwhile, the timetable for electing councillors for the new unitaries is set for May next year, while in some cases ward boundaries will have to be reviewed because of the way the boundaries for the new unitaries have been drawn.

Democratic representation is vital for communities. In England, each councillor will on average represent 3,000 electors. In France, that number is nearer 200 and in Germany it is 400. This Statement represents a retrograde step and a lost opportunity to revitalise local democracy.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I am grateful to the noble Lord, Lord Jamieson, and the noble Baroness, Lady Pinnock, for their questions and comments on the local government reorganisation Statement.

I will begin with the timeline that has led us to the decisions announced on 16 July, because it is important that we understand how we have arrived at the place we are now. On 5 February 2025, the Government invited councils in 21 two-tier areas, together with neighbouring small unitary authorities, to develop proposals for local government reorganisation. That is not imposing a model from Whitehall; it is asking councils to come forward with their own proposals. Those proposals were received from councils on 26 September and 28 November 2025. The Government subsequently launched statutory consultations on them on 19 November 2025 and 5 February 2026, which closed on 11 January and 26 March 2026 respectively.

Between May and June 2026, the Government undertook further consultation in East Sussex, Brighton & Hove, and West Sussex to inform the consideration of potential modifications to proposals in those areas. Then, on 26 March 2026, the Secretary of State announced the first tranche of decisions, on Essex, Southend-on-Sea and Thurrock; Hampshire, Isle of Wight, Portsmouth and Southampton; and Norfolk and Suffolk.

I will now set out the decisions announced by the Secretary of State on 16 July. These were subject to parliamentary approval. They were announced in Parliament on 16 July. There was another debate on the Monday of that week on the same subject. A Written Ministerial Statement was laid, and of course we are debating the decisions now in this House.

The Government will implement, subject to parliamentary approval, proposals for new unitary councils including: two unitary authorities in Derbyshire and Derby, put forward by Chesterfield, Derby, Erewash and High Peak, including boundary changes; in Devon, Plymouth and Torbay, the four-unitary proposal put forward by Exeter and Plymouth, including boundary changes; in East Sussex and Brighton & Hove, the two- unitary proposal, including boundary changes requested by Brighton & Hove City Council, except for the parish of Falmer; the one-unitary proposal in Gloucestershire; the four-unitary proposal in Hertfordshire, including boundary changes, except for the ward of Arbury; in Kent and Medway, the four-unitary proposal put forward by Dover, Swale and Thanet; in Lancashire, Blackpool and Blackburn with Darwen, the four-unitary proposal put forward by Chorley, Lancaster, Preston, Ribble Valley, South Ribble and West Lancashire; in Leicestershire, Leicester and Rutland, a two-unitary option put forward by Leicester City Council, including boundary changes; in Lincolnshire, North Lincolnshire and North East Lincolnshire, the four-unitary proposal put forward by City of Lincoln Council, including boundary changes and leaving North Lincolnshire and North East Lincolnshire unchanged; in Nottinghamshire and Nottingham, a two-unitary option put forward by Nottingham City Council, including boundary changes; the three-unitary proposal in Oxfordshire, including boundary changes; in Staffordshire and Stoke-on-Trent, the two-unitary proposal put forward by East Staffordshire, Stafford, Cannock Chase and Stoke-on-Trent; the two-unitary proposal in Warwickshire; and the two-unitary proposal in Worcestershire.

In Cambridgeshire & Peterborough and West Sussex, the Secretary of State has concluded that further time is required before decisions are reached. It is very important that we take the time to make the right decisions for those areas. To respond to the question from the noble Baroness, Lady Pinnock, about when those will be made, it will be as soon as possible and no later than October. They will be worked on and decided as soon as possible.

I recognise that not all noble Lords, or all councils, will agree with every decision we have made. These are significant changes and they matter deeply to places. Each proposal has been considered carefully against the published criteria, consultation responses and all other relevant information, including consultation with other government departments. The Government’s responsibility is to take decisions that are sustainable, coherent and in the long-term interests of residents.

The reason for reform is clear. In too many places, two-tier local government is confusing for residents. It divides responsibility, slows decisions, duplicates costs and blurs accountability. Boundaries drawn for a different era too often no longer reflect how people live, work, travel and access services, or how they see their own area. That does not serve residents well, nor does it equip leaders for the future. That is why local government reorganisation is necessary: to create stronger councils with the scale and capacity to deliver better services, support economic growth and provide clearer accountability.

Across these areas, 134 councils will be replaced by 38 new unitary authorities. Across England, once all decisions are taken, we will have cut the number of councils from 317 to a maximum of 173. This will simplify and strengthen local government serving over 20 million people. To answer the question from the noble Lord, Lord Jamieson, about savings, the councils themselves have identified significant potential savings of around £1 billion by the end of 2032. These savings can be reinvested in the front-line services that people rely on.

Of course, local government reorganisation is not without its challenges. Transition has to be handled carefully, particularly where vulnerable residents depend on services such as children’s services, adult care and public health. That is why we are providing over £1 million in funding for every new unitary council, including £900,000 in capacity funding and up to £150,000 of additional funding to support children’s services, adult social care and public health leadership. Pace also matters. Council staff and residents need certainty, so moving forward now allows areas to prepare for elections in May 2027 and for the new councils to take on their responsibilities in 2028.

To respond to some of the other questions—I see that I do not have much time, but I will be as quick as I can—the noble Lord, Lord Jamieson, and the noble Baroness, Lady Pinnock, referred to gerrymandering. That is absolutely not the case. I do not know if Members listened to the debate in the other House, but if this was gerrymandering, it did not work, according to some of our Labour Members at that end of the building. The decisions were based absolutely on the merits of the proposals against the six published criteria, consultation responses and other relevant information, and the proposals selected have backing from a range of political parties, not just Labour. Previous decisions did not set a precedent, and I stress that every decision we took was on the basis of the information. All local areas are different, as we often say in this House, and we had to take decisions based on the local circumstances, so they were taken individually and judged on their own merits.

The department ran an independent consultation to assess the proposals against the criteria set out, and the responses were an important factor in the decision-making process. The process is locally led, with councils having been invited to develop proposals for their own areas.

On the size of the local authorities, the 500,000 population figure has always been a guiding principle, not a fixed threshold. Ministers set this out publicly on at least five occasions. Our messaging has been consistent: there may need to be exceptions to ensure that new structures make sense for an area, including to support devolution, and decisions will be made on a case-by-case basis.

I make no apologies for the growth focus in some of these decisions. We need to harness the growth that we know can come from every part of our country. We have made our decisions according to the criteria, and some of those are focused on growth. We need to continue with that so that we can get the potential that this country has out to every postcode in the land.