Local Government Reorganisation

Zöe Franklin Excerpts

Thursday 26th March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Zöe Franklin (Guildford) (LD)]

It is deeply disappointing that this matter is being addressed today through an urgent question, and was not addressed yesterday through a proper statement from the Government. As I have said, the Liberal Democrats support devolution and reorganisation where that strengthens communities, but changes must be locally led, properly consulted on, adequately funded and never top-down.

In recent months, I have spoken to local government leaders across the country, and their really clear and consistent message is, “First, trust us. Secondly, work with us to fix the broken local government funding system,” which is leaving councils struggling to meet rising costs and needs. While the decisions announced for Essex, Hampshire, Norfolk and Suffolk provide clarity—even if areas remain concerned about viability and sustainability—they fail to address those fundamental issues. In the case of Sussex, the Government have essentially dismissed the local proposals, and have instead chosen to consult on their own plans, leaving the county in another period of uncertainty. Does the Minister recognise that that approach undermines trust between national and local government? Has her Department fully assessed the financial consequences of the proposals for reorganisation in those areas and across the country? Will she commit to a cross-party piece of work, carried out with local leaders, on creating a fair, adequate and long-term funding settlement for councils?

[Alison McGovern]

I thank the hon. Lady for those points. On the announcement process, we followed the precedent set by the previous round of reorganisation in 2021, under the previous Government. In relation to Sussex, it is really important that we get this right. We had concerns about the proposals not sufficiently addressing the criteria, particularly on economic growth, service disaggregation, community identity and financial sustainability. We will work quickly with Sussex, so that we can enter into that period of intense discussion and consultation after the local elections. That will not affect the overall timings of the programme, with new unitaries going live in 2028.

The hon. Lady also mentioned working with local government on its overall finances. Having just dealt with the fair funding review, I can honestly say that in the months since I was appointed, I have spent most of my life talking in detail, along with Members from across the House, about financial sustainability for councils. I have no doubt that she and I will engage on the subject many times in the future.