Local Government Reorganisation: Referendums

Damian Hinds Excerpts

Wednesday 21st January 2026 Westminster Hall

[Damian Hinds (East Hampshire) (Con)]

It is a great pleasure to see you presiding over these proceedings today, Ms McVey. I congratulate my hon. Friend the Member for Mid Leicestershire (Mr Bedford) on securing this important debate; it is good to have an opportunity to discuss these issues openly.

It is also a great pleasure to follow the hon. Member for Ipswich (Jack Abbott). He made a lot of the fact that there are hundreds of Labour MPs and the great mandate that that has given this Government. I find it vexing that, with a majority as large as the one this incoming Government have, that they should choose as priorities things such as digital ID, attacking jury trials, taking away school freedoms, trying to ban vaping in pub gardens and trail hunting, and a costly reorganisation of local government.

I am relatively agnostic when it comes to the structure of local government. Some people say that they are in favour of unitaries or of two-tier authorities; I always find that a peculiar position. It is possible to give a decent argument in favour of almost any structure of local government. The one thing I dislike is the upheaval when they are changed. Sometimes there is a good argument for change and we must do it, but we should never pretend that there is no cost to that change. There is a financial cost to reorganisation—what happens to buildings and all sorts of other things—and an effectiveness cost when any organisation is in a state of flux.

In the case of Hampshire, we will be moving from a two-tier system to a single tier of unitaries. There will be some economies of scale and benefits that come with that; for example, bin collections will be on bigger scale, and we should be able to get that at a lower unit cost. There will also be diseconomies in those services that are moving from the county level to the smaller level, for example adult social care and aspects of children’s social care and so on. We do not know—unless the Minister is able to intervene and tell me—what the net effect will be. I have tabled some written questions to ask what the Government’s assumption is on the net effect, and we do not have an answer to that.

If there is a net benefit from the mixture of those economies, diseconomies and costs of transitions, I guarantee that it will not come in year one. All of these plans end up being a classic hockey-stick sales projection—“Of course things are going to get better, but first we have to invest to make that happen,” so the curve goes down before it goes up. I am afraid that, for many sales projections, years one to three turn out to be accurately predicted, but the out years much less so.

There are big choices to be made in reorganising to unitaries—as was alluded to a moment ago in the context of Surrey and Suffolk—in terms of the number of different unitaries in a particular area. That can make a very practical difference to residents. Big-cost items are going to move from county level—the upper tier—into these unitaries. As everybody knows, the two biggest costs are adult social care and high needs children’s social care in education. They are going into the unitaries, so it will make an enormous difference for a district council, depending on which other areas it goes in with.

To fund all that expenditure requires income—from business rates, for example. The overall age structure in the broader footprint of the area also matters. People of working age are net contributors. Retired people and children need cash support. There is also the question of housing, which my hon. Friend the Member for Mid Leicestershire put accurately and succinctly. There is a lot of controversy about the current targets for housing in rural areas, which have gone up under this Government by an average of 71% in new areas and 100% in areas such as mine—East Hampshire.

Some people feel that reorganisation and merging with nearby councils will solve that problem—all that housing will not have to go in the countryside after all; it can go in brownfield sites and developed areas, as it should. I fear that the opposite may be the case. We look to councillors to understand—as they do—the areas they represent. The further away decisions are made on things that really matter to local people, the less likely they are to be good for them.

[Jack Abbott]

What the right hon. Gentleman describes is already happening. Suffolk county council represents the entire county. The argument he is making is already playing out at the moment. We are having these conversations. This has already happened. We have rural councils making decisions about urban issues and vice versa. I do not think it is either/or.

[Damian Hinds]

I am grateful. I was talking about housing development and planning, which in Hampshire is decided by East Hampshire district council, not by Hampshire county council.

There is also the question of identity. Counties and parishes are anciently formed areas. Districts are quite often not; they are modern constructs in many cases, sometimes dating back only to 1974. How does that affect people’s sense of identity? That is half a century ago. I know that makes us all feel a little depressed; I was born in 1969. Over time, they acquire more of an identity, which we should think about.

The hon. Member for Ipswich was right when he said that local government reorganisation is complex, consequential and long-lasting. He also made a lot of having a mandate for change. There were loads of things about change in the Labour manifesto—it said “change” on the front cover. It did not say that the change would include this precise type of local government reorganisation, involving moving specifically to unitary councils. Because it is complex, consequential and long-lasting, it warrants a steady and sober assessment of the implications for all our residents.