LGR Pathfinder

Local government reorganisation involves reshaping the structure and responsibilities of local authorities. Under the proposals outlined in the English Devolution White Paper, the Government plans to move away from the current two-tier system of district and county councils. In most cases, this will involve creating unitary councils serving populations of at least 500,000. However, exceptions may be made to ensure that new arrangements are suitable for local circumstances and support devolution goals, with decisions made on a case-by-case basis.

A shadow authority is elected to oversee and prepare for the operations of a new unitary council in the period leading up to its official launch. The date on which the new council formally assumes its powers is commonly referred to as “vesting day.”

In England, devolution refers to the transfer of powers and funding from central government to local authorities. This process is important because it enables decisions to be made closer to the communities, businesses, and individuals they impact.

The English Devolution White Paper, published on 16 December 2024, outlines the Government’s plans for reforming local government. It sets out a broad range of proposals, including measures to advance devolution, reorganise local government structures, and reform the local audit system.

Devolution involves transferring greater power and funding from the national government to local authorities. Local government reorganisation focuses on determining how that power and funding are distributed among different councils.

A combined authority (CA) is a legal body in England, formed by two or more councils, that allows them to collaborate and make collective decisions on issues that affect their wider geographical area. These authorities can be established with or without a directly elected mayor. They are designed to enable greater regional collaboration on economic development, transport, and other strategic matters.

Strategic authorities are a new overarching legal category introduced by the English Devolution Bill. They will not replace existing Combined Authorities (CAs) and Combined County Authorities (CCAs).

Each CA and CCA will automatically be classified as a Strategic Authority. These authorities will be responsible for developing strategies and delivering programmes within specific areas of expertise, with their functions defined in a statutory devolution framework. There are three types of Strategic Authorities:

• Foundation Strategic Authority: Designed for areas without an elected mayor, these authorities have limited devolved powers. Existing CAs and CCAs will be designated as Foundation Strategic Authorities by default.
• Mayoral Strategic Authority: Mayoral Combined Authorities (MCAs) and Mayoral Combined County Authorities (MCCAs) will automatically be classified at this level unless designated as Established. Authorities with an elected mayor will receive a broader range of devolved powers.
• Established Mayoral Strategic Authority: This status is for Mayoral Strategic Authorities that meet additional governance criteria, unlocking access to further powers, notably the Integrated Settlement.

Additionally, in exceptional cases, a single local authority may be designated as a Foundation Strategic Authority as a transitional step toward forming a Combined or Combined County Authority.

The terms “Unitary Council” and “Strategic Authority” refer to different forms of local government in the UK, each with its own role and responsibilities.

A Unitary Council operates as a single-tier authority, taking on all local government functions that are currently divided between the county council and district or borough councils.

Strategic Authorities, such as combined authorities, are collaborative partnerships of multiple local councils across a wider area. They focus on strategic issues and region-wide services, often led by a directly elected Mayor.

Councils are required to take part in the process outlined in the Government’s English Devolution White Paper. Opting out is not permitted, and maintaining the current arrangements is not an option.
The Government has made it clear that all councils in two-tier areas, as well as smaller neighbouring unitary authorities, are expected to submit proposals for reorganisation. It aims to move this process forward swiftly and is prepared to introduce legislation if needed to ensure progress.

The changes will not affect parish and town councils structurally, and the government will not abolish them.

Local authorities might choose to work together with town and parish councils to identify the best ways these councils can support service delivery under future arrangements. In this process, they should take into account the financial and administrative resources needed by town and parish councils and aim to limit any potential burden on local taxpayers by avoiding significant increases to parish precepts.

Local authorities may also wish to collaborate with town and parish councils to determine how they can most effectively manage local assets in future arrangements.