“Councils are demonstrating remarkable resilience, innovation and community focus” on road through change

Today, the Local Government Information Unit (LGIU) has released its latest research on the State of Local Government Reorganisation (LGR) England. This publication offers a critical snapshot of the early narratives being generated by councils on LGR with a focus on the trends of new unitaries, the cost implications, the nature of financial analysis and best practices in LGR approaches. 

Carried out following the government’s 21 March deadline for interim proposals for those in the Devolution Priority Programme (DPP) and other two-tier areas, the research found that 20 out of 21 two-tier regions submitted proposals with 38 proposals submitted across those 21 two-tier regions of England.

A range of options for potential new unitaries were included from 27 to 67 different unitaries. And, across 18 regions (with the information publicly available), the average population size of options was 544,837. Across the 27 proposals analysed, £38.4m has been set aside for preparing LGR proposals. And, current financial analysis averages the estimated transition cost for each region’s reorganisation as £31.1m.

LGIU’s analysis found 7 recurring and consistent themes emerged from councils’ submission on barriers, challenges or support required from central government. Some of these included the need for sustainable funding to support both short and long-term financial issues, a more structured and transparent relationship with central government and clarity around timelines and assurance that the government will act promptly. These were echoed in LGIU’s 2025 State of Local Government Finance report published in February.

This research is launched alongside LGIU’s full collection of devolution and LGR resources now available here. 

Jonathan Carr-West, Chief Executive, Local Government Information Unit (LGIU) said: “We are still in the relatively early stages of the reorganisation journey and, as this analysis shows, there’s a long road still to be travelled. Already though, we see an emerging risk that a focus on process, project management and structure crowds out thinking about what we want to deliver.

Of course councils need to make sure that this process is robust, properly managed and governed. And, as we get further into reorganisation, we need to be working to ensure that new unitaries are safe and legal on day one and that these are necessary, not sufficient, conditions for success for day two and beyond. 

Local government reorganisation represents both a profound challenge and a transformative opportunity for England’s councils. Ahead of April and May feedback from MHCLG on interim proposals, councils must take stock and really think about their vision for the models of local government they seek to create. What are the design principles for these new unitary councils? How will they approach public service reform, financial sustainability and democratic engagement?

LGIU welcomes conversations with councils already on this journey, or those seeking to reflect on what 21st-century local government means. 

The current variety of approaches to LGR speaks to the strength of local government – the ability to adapt national policy directions to local communities through flexible solutions.  But while councils in the Devolution Priority Programme await feedback from MHCLG in late April, and others in May after local elections, there is a clear opportunity to learn from the existing base of proposals.  

The councils navigating this complex process are demonstrating remarkable resilience, innovation and community focus. Now the government needs to step up and provide flexibility, clarity and support. As proposals are refined through the summer we will need an ongoing, open dialogue between the sector and the centre.

And we all need to remember that, in the end, the measure of success will not be found in organisational charts or population statistics or even in savings, but in stronger, more responsive local governance that better serves the people it represents.” 

ENDS

Notes to editors

State of Local Government Reorganisation (LGR) England – April 2025 This publication offers a critical snapshot of the early narratives being generated by councils on LGR. We focus on the trends of new unitaries, the cost implications, the nature of financial analysis and best practices in LGR approaches.

2025 State of Local Government Finance report LGIU’s 12th annual State of Local Government Finance (England) report surveys council leaders, chief executives, section 151 officers and cabinet members for finance to gauge how confident the sector is feeling about the sustainability of council funding.

Navigating risk in local government: challenge, change and capacity The LGIU’s Local Democracy Research Centre interviewed risk managers in UK local authorities in depth to better understand how councils manage risk, the challenges faced by risk managers, and how the perception of risk in local government is changing.

Ones to watch Our guide to the 2025 local elections across England with what’s at stake and up for grabs on 1 May.

Local government facts & figures All of the details on how a council really works, a breakdown of local government structures, stats and workings across England. 

LGIU Briefings – free access for press You have complimentary access to our briefings service. Our team of expert associates produce over 250 local government briefings each year and have an archive of 2000+ briefings. Our Daily News provides a professional summary of the top local government news making the headlines and is emailed first thing each morning ensuring that you are always up to date with latest developments. To sign up to receive our updates, make sure you set up an account as a member. For any queries, please contact [email protected]. 

About LGIU

The LGIU is an independent, not-for-profit membership organisation working to make local democracy around the world collectively stronger, through shared ideas, resources and connections for local government.