Plans are being prepared for a significant reorganisation of local government in England, which could see district councils abolished and the introduction of more elected mayors with expanded powers.
A government paper, due to be published today, outlines proposals to merge areas currently governed by two-tier councils - where responsibilities are split between district and county councils - in an effort to streamline services and improve efficiency.
The proposals also include empowering metro mayors with greater authority over planning decisions to accelerate the delivery of housing and infrastructure projects.
The proposed reorganisation seeks to simplify local government structures, thereby improving service delivery and decision-making processes. By establishing unitary authorities with populations of at least 500,000, the government anticipates that these bodies will operate more effectively and be better positioned to manage resources.
Local authorities in England have been experiencing significant financial challenges, including reductions in central government funding and escalating demands for services like social care. The Local Government Association (LGA) has previously estimated a funding gap of £4 billion for councils in England.
Additionally, the reforms are designed to facilitate the devolution of powers from central government, granting local leaders greater authority over areas such as planning and infrastructure development.
Local government in England is characterised by a mix of arrangements. In many areas, county councils handle broader responsibilities like education and social care, while smaller district councils manage local services such as waste collection. Some regions, however, are governed by single-tier "unitary" authorities or combined authorities, which bring together multiple councils and often operate under elected metro mayors.
The upcoming paper will propose moving towards a system of unitary councils across the country, with areas currently operating under two-tier systems encouraged to present merger plans. This shift is intended to simplify governance structures, reduce costs, and support the creation of stronger regional mayors to oversee multiple councils.
Nonetheless, Labour’s plans have drawn mixed reactions. While the County Councils Network (CCN) welcomed the potential for greater financial sustainability and improved funding access, others remain sceptical.
The District Councils’ Network (DCN) has raised concerns about the changes, warning that creating larger councils could undermine local decision-making. Hannah Dalton, Vice-Chair of the DCN, cautioned that such reforms could lead to a “period of turmoil,” diverting attention away from key services such as housing and health support.
The proposals are also expected to include measures to enhance cooperation between councils on infrastructure and transport projects. Upper-tier councils will be required to produce condensed "spatial development" strategies, mirroring those used by cities for major developments.
This comes against the backdrop of ambitious housebuilding targets - with the Prime Minister's announcement of a 'milestone' of 1.5 million houses to be built over five years, and last week's announcement of mandatory house-building targets for local authorities of at least 370,000 homes a year.
The Government has already signed several devolution agreements since taking office, including deals in Greater Lincolnshire, Hull and East Yorkshire, Devon and Torbay, and Lancashire. However, progress remains uneven, with resistance to reorganisation in areas such as the south-west and East Anglia, where population thresholds make forming larger combined councils more challenging.
Greater Manchester Mayor Andy Burnham expressed cautious support for the reforms but argued that the proposed changes do not go far enough, particularly in granting mayors more control over skills and education policy, which he views as critical to driving regional economic growth.