Local Government Reorganisation (LGR), as outlined in the English Devolution White Paper published on 16 December 2024, involves the restructuring of local government from a traditional two-tier system, where responsibilities are split between county and district councils, to a unitary authority, which is a single-tier structure responsible for all local services within its area.
In February 2025, the Government announced the inclusion of six areas in the Devolution Priority Programme, with the addition of Surrey to be fast-tracked. For councils in the Priority Programme, the Secretary of State invited proposals for a single-tier system of local government to be submitted by September 2025 (Surrey submitted proposals in May 2025). The Government has indicated that decisions on which proposals to progress under the Priority Programme will be made by March 2026, with a separate decision regarding Surrey expected in November 2025.
The legal framework for unitisation is established under the Local Government and Public Involvement in Health Act 2007 (2007 Act). The English Devolution and Community Empowerment Bill is set to grant the Government additional powers to mandate unitisation and direct mergers of single-tier authorities. Whilst this will not affect the existing programme, it gives the Government power to direct unitarisation going forward.
The process of unitarisation
1. Submission of proposals
All proposals under the Devolution Priority Programme must be submitted by September 2025. Proposals should follow guidance issued by the Secretary of State and take into account various issues including:
- boundary changes
- engagement and consultation on reorganisation
- interim plans.
Guidance from the Secretary of State identifies criteria for unitary local government to include:
- proposed area
- proposed structure (e.g. one or more unitary authorities) and boundary changes
- governance arrangements
- financial implications and efficiencies
- service delivery models, partnership working and collaboration
- public engagement and support
- proposals for unlocking devolution.
A link to a sample invitation letter can be found on the GOV.UK website.
2. Consultation and evaluation
The Government is required to conduct a statutory consultation on received proposals in accordance with section 7(3) of the 2007 Act and must consult any council affected that has not submitted the proposal and any other persons the Secretary of State considers appropriate.
Statutory consultation will be made available to the public on gov.uk and the Government is clear that the views of any persons or bodies interested in the proposals are welcome.
Proposals will be evaluated against criteria such as:
- local support
- affordability
- service improvement
- strategic coherence.
When making a decision, ministers will take into account all the representations received, including consultation responses, as well as any other relevant information available to them.
3. Structural Changes Order (SCO)
If a proposal is approved, the Government will make a Structural Changes Order (SCO) (a statutory instrument) under its powers pursuant to Section 7 of the 2007 Act. The SCO may include various provisions for the purpose of implementing the successful proposal (s11 2007 Act) including:
- specifying arrangements for the first elections
- legally abolishing any existing local government area and winding up and dissolving an existing authority
- establishing the new unitary authority
- setting out transitional arrangements and timelines
- transferring of functions.
The new authority will formally take over on vesting day, and the existing councils will be dissolved.
4. Transitional arrangements
The period between the SCO and vesting day is the transition period, during which preparations are made for the new authority’s “go live” date.
Key transitional steps include the formation of the Shadow Authority, which:
- oversees preparations for the new authority, appoints interim statutory officers and adopts codes of conduct and member allowances
- prepares/implements an implementation plan for transition
- liaises with existing authorities to ensure a smooth transition.
5. Vesting day
On vesting:
- all functions, assets, and liabilities transfer to the new authority
- previous councils are dissolved
- new governance arrangements take effect.
What should local authorities be doing now?
Local authorities are advised to use this period, prior to the Government’s selection of proposals, to prepare for the transition phase by:
- auditing employee data and service delivery roles
- reviewing contracts and asset registers
- identifying contracts nearing expiry or lacking documentation
- assessing property portfolios for future needs
- reviewing records management and retention compliance.
Support and further information
If you would like to discuss any of these issues with our legal advisors, please contact us. Stay tuned for further updates and webinars in the coming months.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at September 2025.