Local Government Reorganisation – Statement 3 June 2025
4 June 2025
The Minister for Local Government and English Devolution, Jim McMahon, made a Written Ministerial Statement on Tuesday 3 June updating Parliament on the latest steps on Local Government Reorganisation. The statement can be read in full here.
Alongside this, a summary of feedback to interim plans was published. A link to this summary can be found here.
Overview
The Ministerial Statement outlines the government’s ongoing commitment to Local Government Reorganisation (LGR) across twenty-one ‘two-tier’ areas in England. The aim is to establish strong, sustainable unitary councils that are better equipped to lead communities, deliver services, and support devolution.
Key points for parish and town councils
Shift of power: The government is decentralising authority from Whitehall to local areas, empowering councils to lead on local priorities.
Proposal development contributions: Principal councils in each area will receive a base of £135,000 plus 20p per resident to support the development of final proposals. This funding is to be shared among up to three councils per area.
Shared evidence base: Councils are expected to collaborate and share data to underpin proposals. This includes financial sustainability, service delivery, and community outcomes.
Neighbourhood area committees: These are promoted as a key mechanism for community engagement, led by ward councillors and potentially including parish/town councillors and community representatives.
Community voice: LGR should enhance, not diminish, local engagement. Councils are encouraged to embed community participation into governance structures.
Planning and development: Councils must continue progressing local plans for housing and development, despite the demands of reorganisation.
Flexibility in structure: While a population of 500,000+ is a guiding principle for new unitaries, flexibility is allowed based on local context and rationale.
Support and guidance: The government, alongside the Local Government Association (LGA), is providing technical, financial, and advisory support to councils.
Proposals concerned with community-level governance
Neighbourhood area committees:
Proposed as the primary model for neighbourhood governance
Led by ward councillors, with potential inclusion of parish/town councillors and community organisation representatives
Intended to deepen localism and ensure community voices are heard in decision-making
Formal neighbourhood partnerships:
Encouraged as part of final proposals to demonstrate how councils will engage communities
Should be clearly outlined in submissions, including structure and membership
Community engagement expectations:
Councils must show how they have engaged with residents, especially where services may be disaggregated
Final proposals should reflect local views and demonstrate meaningful consultation
Support for new parish or town councils:
Areas considering the creation of new councils should assess funding implications carefully
While valued, parish/town councils are not substitutes for direct community engagement by principal authorities
Local identity and place-based governance:
Proposals should consider how new structures will preserve local identity and foster a sense of place
Efficiency savings must be balanced with maintaining strong local connections
Avoiding duplication:
Councils are advised to avoid creating new burdens or duplicating roles between unitary authorities and parish/town councils
SLCC has issued a press release welcoming the commitment to devolution through LGR but setting out our disappointment that the role of local councils in the process has been largely overlooked and underplayed as the primary tier for the delivery of hyperlocal services.
