Devolution and Local Government Reorganisation: Frequently Asked Question

What is Local Government Reorganisation (LGR)?

Local Government Reorganisation (LGR) is distinct from devolution. It typically refers to the restructuring of local government in areas that currently operate a two-tier system, comprising a county council and one or more district councils, into a single-tier unitary authority responsible for all local services.

While we await a decision from the Government on the boundaries of new unitary authorities, it is likely that these will involve merging existing district council areas with parts of county council areas.

What is the English Devolution and Community Empowerment Bill?

The English Devolution and Community Empowerment Bill was laid before Parliament on 10 July 2025. It comprises three key parts.

• Devolution: establishes Strategic Authorities across England and sets out their general and specific powers of competence.
• Local Government and Police and Crime Commissioners (PCCs): addresses single-tier local government structures, changes to mayoral and PCC voting systems, neighbourhood governance, and local audit reforms.
• Community empowerment: introduces measures such as a Community Right to Buy, a duty on local authorities to ensure appropriate governance of neighbourhood areas, and a ban on upwards-only rent reviews.

What powers can be devolved to elected mayors?

The Bill introduces several new powers for elected mayors.

• A General Power of Competence
• Additional Areas of Competence, including:
  • transport and infrastructure
  • skills and employment support
  • housing and strategic planning
  • economic development and regeneration
  • environment, health improvement, and public safety.
• A Power to Convene and Duty to Respond: mayors can require collaboration from local partners (e.g. NHS, police, local authorities) on regional challenges.
• A Right to Request Additional Devolved Powers from the Government.

What are unitary authorities?

A unitary authority is a single-tier local government body responsible for all local services within its area. In contrast, the two-tier system divides responsibilities between a county council and one or more district or borough councils.

The Government intends to replace the two-tier system with unitary authorities across counties, while also introducing Strategic Authorities at the regional level.

What is a governance review?

A governance review is a structured evaluation of how a local authority makes decisions, manages resources, and ensures accountability.

Local authorities are expected to follow the Delivering Good Governance in Local Government Framework, developed by CIPFA and SOLACE, and to conduct annual governance reviews culminating in the publication of an Annual Governance Statement (AGS).

Authorities must also have regard to the Overview and Scrutiny Statutory Guidance (2024) and are encouraged to critically assess their governance arrangements.

What are transitional arrangements?

Transitional arrangements refer to the legal, administrative, and operational steps required to move from the existing local government structure to a unitary authority.

The transition period begins with the making of a Structural Changes Order (SCO) and ends on vesting day, when the new authority formally takes over.

During this period:

• a Shadow Council and Shadow Executive are formed
• an Implementation Plan is developed and executed
• existing councils coordinate transition activities to ensure a smooth handover.