Local Government Reorganisation

Caroline Nokes Excerpts

Thursday 16th July 2026 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (Steve Reed)]

This Government are driving the most ambitious programme of local government reform in a generation by replacing the inefficient two-tier system with new unitary councils so that all parts of our country are ready for devolution. We need to devolve power out of Whitehall so that we can rebalance wealth, power and opportunity right across the country. This is the second richest country in Europe, yet England has seven of the 10 poorest regions in northern Europe. That is the case for change.

Devolution requires strong local councils that deliver good public services and support economic growth, and which are closely connected to the communities they serve. Two-tier structures are confusing for residents, divide responsibilities, slow down decisions, duplicate costs and blur accountability. In many areas, existing boundaries no longer match patterns of local economies, public services or local identities. We cannot continue with an outdated and misaligned system that does not serve local people well. We can do better.

Today I am announcing further decisions on local government reorganisation in the remaining areas of the programme. Subject to parliamentary approval, I have decided to implement proposals for new councils in the following areas. In some of these areas, modification powers will be used to make the boundary changes requested alongside proposals.

The specifics are in the accompanying written statement, and for ease I will refer to the proposals in the following shortened form: in Derbyshire and Derby, the two-unitary option 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 and Hove, the two-unitary proposal, including the boundary changes requested by Brighton and 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 Lincoln city council, including boundary changes, but 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 and Cannock Chase, but also by Stoke-on-Trent; the two-unitary proposal in Warwickshire; and the two unitary proposal in Worcestershire. On Cambridgeshire and Peterborough and West Sussex, I am not making announcements today, because further time is required to get the decisions right.

Everyone involved wants to see stronger local councils delivering better local services that will improve the lives of the people we serve. The decisions announced today will do that, and improve local government for more than 15 million people. We will see 38 councils operating across these areas in place of the current 134. That will result in more than 250 fewer senior posts, significant salary savings and nearly 3,000 fewer councillors, which could save up to £20 million per year on councillor allowances alone across these areas. Councils themselves projected that the decisions could lead to net savings of about £1 billion by the end of 2032-33 when the anticipated benefits are fully realised. Those savings will be reinvested in the frontline services that local people care about the most. Across England, once all decisions are taken, we will have cut the number of councils from 317 to a maximum of 173. That will simplify and strengthen local government serving over 20 million people.

Reorganisation will also support city growth. For example, Plymouth is a nationally significant defence growth location and a house building priority, driven by investment at Devonport. Leicester is a major urban economy facing cross-boundary housing, employment and infrastructure pressures, including unmet housing need. Our decisions today will help those two cities grow, along with others, including Preston, Derby, Nottingham, Exeter, Oxford, Brighton and Hove, and Lincoln. These bigger cities will be crucial in ensuring that our country can build the homes we need.

I am tremendously grateful for all the hard work that councils put in to their proposals, but I appreciate that some Members of this House and some councils will disagree with my decisions. I am sure we can all agree that the hard work of transition to new councils must continue to be a shared endeavour across local and central Government. To protect the services that some of the most vulnerable people in our communities rely on, we all need to get that right.

A broad support offer is in place for councils, including support to councils through our sector advisers and through funding to the Local Government Association. We have already announced £63 million in capacity funding to support the reorganisation process. I am pleased to provide further detail today on how this funding will be allocated. Each area will receive an unprecedented £900,000 per new unitary council in capacity funding. On top of that, we are committing up to £150,000 in supplementary funding, as part of a wider package of support for children’s services, adult social care and public health leadership. Taken together, for every reorganisation area, there will be over £1 million in capacity funding for each new unitary council. This is the first time that reorganisation has been supported in this way, and it shows this Government’s commitment to supporting councils to ensure that we get these reforms right.

The programme will now move forward in line with the timetable already set out, with elections to the new unitary councils scheduled for May 2027, ahead of new councils taking up their powers in April 2028. Today marks a significant milestone for the future of local government, with decisions now taken on 19 out of 21 two-tier areas across England. Reorganising local government is not a debate about where to draw lines on a map or about structures and systems; it is about making real improvements to people’s lives and to the communities they are a part of. This reform programme is ambitious, but it is the right thing to do. I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

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[Steve Reed]

I have visited my hon. Friend’s constituency with him on several occasions and I recognise the work he does to champion his local communities, including through the process we are currently engaged in. Council tax will be a matter for the council to set for itself, within the parameters permitted, and it will take those decisions in due course. The particular split in the case of Staffordshire was proposed and selected to minimise service disruption by aligning with delivery, commuting, patient flows and partnership. The proposal we have adopted will be very strong on financial sustainability and resilience. That will benefit the stability of services, but it should also benefit council tax levels further down the line.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Olly Glover (Didcot and Wantage) (LD)]

I thank the Secretary of State for advance sight of his statement. I recognise that a lot of work has gone into the proposals by a lot of people, but many of the details add to an existing impression of chaos. We are finally getting sight of the detail just 9.5 months before many affected areas have elections. Councils have been forced into putting time and resources into coming up with proposals, many of which have been ignored. Councillors and officers have been uncertain about their future for the nearly two years it has taken to get to this point. Many communities will feel done to, not done with.

The lack of notice and opportunity to scrutinise the Department’s decisions is also a huge concern. The Secretary of State’s suggestion that local identities are being considered will come as a huge surprise to my constituents in Culham and Clifton Hampden, which, although many miles from Oxford city centre and surrounded by countryside, will be incorporated into Greater Oxford. Many communities and council wards in Oxfordshire will also now be arbitrarily divided between the new unitary councils. Colleagues in Devon worry that rural communities have been ignored at the expense of new unitaries designed to benefit the needs of cities.

There were endless changes of mind about Sussex elections and boundaries, and now, the fact that a decision has not been made about West Sussex has been met with disbelief. The Government promised to work in partnership with local authorities and rebuild the trust that was shattered over the past decade. What assessment has the Secretary of State made of the long- term financial viability of the proposed unitary structures, given that several of the councils being merged risk being financially unviable?

[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Before I come to Back Benchers, let me say that, as Members will be aware, a lot of you wish to get in. It would be very helpful if questions were succinct.

[Michael Payne (Gedling) (Lab)]

The Secretary of State and I have known each other a long time—we served in local government together—and he knows that I am as passionate as he is about bringing power back closer to people, but I have to say to him, in all honesty, that the decision to split my home community of Gedling borough in half and force communities in Gedling into an expanded new Nottingham city council area against their will is bad for my constituents and bad policymaking. I have to tell the Secretary of State that this is a decision that I cannot and will not support.

Will the Secretary of State tell me what on earth makes sense about creating two councils for Nottingham and Nottinghamshire, when official figures show that from day one, one of them will be £147 million better off than the other? Will he explain to my constituents why the Government have backed the option that did not adhere to the strict criteria set out by the Government at the start of this process? Finally—thank you for your forbearance, Madam Deputy Speaker—given his announcement that he will hold off on making a decision on Cambridgeshire and Peterborough, will he re-think on Nottingham and Nottinghamshire, and hold off on making a decision until an agreement can be made in my part of the world?

[Steve Reed]

First of all, I pay tribute to my hon. Friend for the way he always champions and represents the views and interests of his constituents. We have indeed known each other for a very long time, and I always appreciate his views, even when we disagree. I will, of course, be happy to ensure that he has a meeting with me or a relevant Minister to discuss his concerns, but the decision we have taken on Nottingham and Nottinghamshire was made because it offers the strongest economic geography, and allows economic growth to happen at pace. That will benefit everyone living in Nottinghamshire. We really must take decisions that will tackle the wide economic divides that are pulling this country apart. Everyone everywhere in this country deserves the chance to get on, and that means bringing investment and good jobs to every single part of this country. This is what this proposal is intended to achieve.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

One of the poorest wards in the entire country is Gainsborough south-west ward. Why is the Secretary of State splitting West Lindsey in half? Why is he taking Scampton away from Gainsborough? It makes no sense. Why is he cutting away the nuclear fusion site from Lincoln? Why is he loading debt on Lincoln city council—for example, for the Hykeham bypass? There is no logic in this, other than it being a stitch-up by Lincoln Labour party. This is the only Labour-controlled council in Lincolnshire. Everybody else has been treated with complete contempt.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. Can I make another exhortation for short questions, please?

[Steve Race (Exeter) (Lab)]

I welcome the four-unitary model for Devon, as I think it best serves the interests of everyone across Devon. This has been a long time in the making for Exeter. It has been increasingly unsustainable to retain Exeter—an economic driver of the region—as a district council. Does the Minister agree that this proposal will allow Exeter to better drive sustainable economic growth, jobs and opportunity, and will mean that decision making is better represented by the people in my city?

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[Kevin McKenna (Sittingbourne and Sheppey) (Lab)]

I am a strong proponent of unitaries, given that the root-cause of many of the problems in my constituency is the fact that we have districts and the county council. There is no perfect solution for anywhere, and everywhere is special, but Kent has a lot of elements that are particularly special. We have three coasts, links to the continent and the rest of the country and, in my constituency, two industrial towns that are completely outwith the rest of the county’s economy. There are challenges around the decision that was made, particularly where transport links and NHS boundaries do not line up. Also, because the constituency has been separated from the rest of the Thames estuary, we are missing out on huge economic potential. Will the Secretary of State outline what we will do to accelerate devolution powers to Kent and my constituency—particularly to ensure that we are creative so that we do not just follow the medieval boundaries but maybe bring in some emergency development corporations so that we can bridge the gap?

[Madam Deputy Speaker (Caroline Nokes)]

Order. That really is enough.

[Steve Reed]

I thank my hon. Friend for the creativity in his proposals, which would further benefit his constituents and Kent. I am happy to ensure that he has a meeting with the relevant Minister to discuss those. The option that we have accepted for Kent gives us the best alignment with functional urban areas and allows us to attract inward investment that will benefit people in his constituency and right across the county. However, I am happy to discuss some of the other ideas that he has just put forward.

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[Linsey Farnsworth (Amber Valley) (Lab)]

Local Amber Valley leaders and I support devolution, but we are incredibly concerned about the decision to split Amber Valley between two unitary authorities, particularly because the option selected was not subject to public consultation. It also places a huge burden on Amber Valley borough council during the reorganisation, with double the amount of work. I am thinking about my constituents and their absolute right to excellent public services throughout the process, and the Secretary of State will know, through my many representations, of my concern about capacity to deliver the change. My local authority is considering the next steps, and the Secretary should know that that includes all options available to them. I am pleased to hear about the capacity funding—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady needs to ask a question, as indeed do all Members, as quickly as possible, because this is taking a very long time.

[Linsey Farnsworth]

Will the Secretary of State give a commitment that the lion’s share of the capacity funding for Derbyshire will go to Amber Valley, given that we are the most affected?

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[Mr Francois]

What are you doing in Essex?

[Madam Deputy Speaker (Caroline Nokes)]

Order. Mr Francois!

[Mr Francois]

He did not make a—

[Madam Deputy Speaker]

Order. Good temper and moderation are called for at all times in this Chamber.

[Jodie Gosling (Nuneaton) (Lab)]

I welcome today’s decision, which brings an end to decades of destabilising indecision across Warwickshire, and I thank the Government for being decisive. The decision, which has cross-party support from four of the five districts in Warwickshire, will empower North Warwickshire to focus on growth, investment and funding to meet the needs of our communities, and allow us to be the masters of our own destiny. A previous report raised concerns about sustainability—this was before the Government’s generous settlement under fair funding—so can the Secretary of State reassure my residents that financial assessments were done in full before considering the options?

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[Neil O’Brien (Harborough, Oadby and Wigston) (Con)]

On a point of order, Madam Deputy Speaker. This morning, the Department arranged an official briefing for Members about what was going to happen to their communities, but Leicestershire Conservative MPs were not invited. I have seen the schedule, and we are not on the list. I thought it was a rule of this House that MPs should be told everything at the same time, yet some appear to be more equal than others. Can you advise, Madam Deputy Speaker, on what redress we can seek?

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member for his point of order. It is not a matter for the Chair, but he has put his point on the record. I am sure the Secretary of State will have heard his comments, and if a correction is needed, he will make it.

[Michael Payne (Gedling) (Lab)]

On a point of order, Madam Deputy Speaker.

[Madam Deputy Speaker]

I call Oliver Ryan.

[Michael Payne]

—Michael Payne.

I simply seek to correct the record. I should have, when I made a contribution in the statement, drawn attention to my entry in the Register of Members’ Financial Interests as a serving Gedling borough councillor. I seek through this point of order to correct the record.

[Madam Deputy Speaker]

Perhaps I also need to correct the record—it has been a long summer already.

I thank the hon. Member for correcting the record in that way as it did pertain to this particular statement.