Devolution and Local Government Reform
- Dec 23, 2025
- 7 min read
Updated: Feb 4
October - December 2025 Update
The following update provides you with the key news relating to local government reorganisation and devolution for the final quarter of 2025.
Final proposals for LGR in all two-tier areas were required to be submitted to the Ministry for Housing, Communities and Local Government (MHCLG) by 28th November. All areas managed to submit proposals but interestingly, no area managed to submit a proposal which had full agreement from the councils in the area.
As a result, the Government will now need to decide on the proposals that come closest to meeting their specified requirements. They retain the right to not accept any of the proposals on board and make their own directions.
Our review of all of the proposals shows that significant changes are on the horizon. Here are some of the key numbers to demonstrate this:
317 – the current number of councils in England
187 – the highest number of councils we will have in England after LGR
150 – the lowest number of councils we will have in England after LGR
165-175 – the expected number of councils post LGR based on how proposal match up to Government requirements.
A break down of all of the submitted proposals can be found in Appendix 1.
What is next?
The Government will be now need to review all proposals and decide on which one to take forwards. As part of that process, they will carry out a statutory consultation in accordance with the requirements of the legislation, which is that the Secretary of State must first consult any council affected that has not submitted the proposal, as well as any other persons considered appropriate, before a proposal can be implemented.
Once a statutory consultation is concluded, Ministers will decide, subject to Parliamentary approval, which, if any, proposal is to be implemented, with or without modification. In taking these decisions, Ministers will judge proposals in the round against the criteria.
Once a decision is taken on which proposal to implement, the Government will prepare the necessary legislation (the SCO) for Parliamentary approval. The SCO establishes the new single tier of local government in the relevant area and makes provision to abolish the predecessor councils. It will replace any currently planned elections with new elections for the new councils with appropriate wards/divisions for these new elections, amend the terms of office of current councillors as required, and give any preparatory functions needed.
The Department will work with the current councils during the preparation of the legislation, seeking input on specific matters which might include names of the new councils, transitional arrangements and electoral arrangements.
Once the SCO has been made, the existing councils carry on delivering services and fulfilling their duties until vesting day, while preparing to transfer all assets, functions and staff on vesting day when the predecessor councils are dissolved and the new unitary authority takes on the legal duties and powers for providing local government to the area.
The shadow authority will focus on getting ready for the go-live day for the new unitary authority and will be responsible for taking any decisions relating to the preparation for new unitary authority to be safe and legal on day one. MHCLG will require an Implementation Plan from the relevant transition body, which will set out what steps and decisions the body needs to take in order for the new unitary council to be ready for vesting day.
This all leads up to vesting day, when the new unitary goes live. The target date for the new unitaries to be vested is 1 April 2027 (for Surrey) and 1 April 2028 (for all other areas).
Dealing with key transitional arrangements
We will shortly be sending around a checklist which will walk you through the key transitional elements relating to property. We will also be hosting a webinar on this topic. If you would like to receive this, please email chris.kerr@djblaw.co.uk.
We have written an article for BE News on some of the property issues ahead, which you can view here: https://benews.co.uk/informed/a-bold-new-era-for-local-government-understanding-the-changes-ahead/
DJB survey reveals concerns about how LGR will impact regional estates management
A new Davitt Jones Bould survey of over 100 senior local government real estate professionals has found that local government reorganisation (LGR), in which councils in two-tier areas – i.e. those governed at both county and district/borough/city levels – will be replaced by a single-tier system of unitary authorities, will have a negative impact on regional estates management.
Some 46% of respondents – which included heads of asset teams, in-house lawyers and surveyors – said that they were not confident that the latest devolution updates will improve regional estates management. A further 31% said they were unsure, reflecting the current uncertainty LGR is causing to local authority teams.
One head of legal commented that LGR will have a hugely disruptive effect on local authorities, potentially leading to high levels of redundancy.
Participants were also concerned that dissolving smaller, more localised authorities and creating bigger councils that cover larger areas, would have negative impacts on the ability to take important decisions about assets at a local level, the best way to optimise those assets and the way funding would be allocated. Concern was particularly high where rural and city councils are to merge, with respondents worrying that funding allocations, which once made their way to rural and coastal areas, will now be given to cities.
View more, here: https://www.djblaw.co.uk/post/a-bold-new-era-for-local-government-understanding-the-changes-ahead
Councils involved in LGR must adhere to recommended code of practice for local authority publicity
On the 19th November, Alison McGovern, Minister for Local Government and Homelessness, wrote to all council leaders involved in LGR to remind them that they need to adhere to the recommended code of practice for local authority publicity (‘the Code’).
This was a result of many public engagement communications failing to comply with the Code. For example, some lacked objectivity and others used public funds to secure support for their preferred reorganisation proposal. There have been concerns that lines have been crossed from engagement to campaigning.
The Code requires publicity issued by local authorities to adhere to seven principles:
lawfulness, cost-effectiveness, objectivity, appropriate use of publicity, have regard to equality and diversity, and be issued with care during periods of heightened sensitivity (i.e. the periods before elections and referendums). There is particular concern for areas where reorganisation proposals are being fiercely contested. In her letter, the Minister confirmed that if Councils do not adhere to the code, she has the power to direct compliance under section 4A of the Local Government Act 1986. She also reminded Monitoring Officers that they have a statutory duty to report matters that they believe are (or are likely to be) illegal.
Consultations launched in several areas
On the 19 November, MHCLG launched consultations on local government reorganisations in the six priority areas:
East Sussex and Brighton & Hove and West Sussex;
Essex, Southend-on-Sea and Thurrock;
Hampshire Isle of Wight, Portsmouth and Southampton;
Norfolk; Suffolk.
The consultation is open to councils affected by the proposals, neighbouring councils and any other ‘appropriate persons’, including local residents and business owners.
The consultations close on 11 January 2026.
Government issues response to the consultation on improving the local government standards framework.
There is no doubt that the devolution of powers to elected mayors and other leaders comes with risk. That is why there has been a call for improving the standards framework to ensure elected members embody the highest standards of conduct.
The ‘Strengthening the Standards and Conduct Framework for Local Authorities in England’ consultation sought views on a whole system reform of the standards and conduct framework for local government.
In summary, the Government intends to legislate for a whole system reform of the current regime as set out in Localism Act 2011. The measures will include:
the introduction of a mandatory code of conduct, which will include a behavioural code, for all local authority types and tiers
a requirement that all principal authorities convene formal standards committees, to include provisions on the constitution of standards committees to ensure objectivity, accountability and transparency
the requirement that all principal authorities offer individual support during any investigation into code of conduct allegations to both the complainant and the councillor subject to the allegation
the introduction at the authority level of a ‘right for review’ for both complainant and the subject elected member to have the case reassessed on grounds that will be set out in legislation
powers for authorities to suspend elected members for a maximum of 6 months for serious code of conduct breaches, with the option to withhold allowances during suspension for the most serious breaches and introduce premises and facilities bans either in addition or as standalone sanctions
in response to the most serious allegations involving police investigation, or where sentencing is pending, the introduction of powers to suspend elected members on an interim basis for an initial period of 3 months which, if extended, will require regular review
a new disqualification criterion for any elected member subject to the maximum period of suspension more than once within 5 years
the creation of a new national appeals function, to consider appeals from elected members to decisions to suspend them and/or withhold allowances, and for complainants if they consider their complaint was mishandled. Any appeal submitted will only be permitted after complainant or elected member has invoked their ‘right for review’ of the local standards committee decision has been invoked and that process is completed
The date for which this legislation will be drafted and run through the parliamentary process is yet to be announced.
How we can help
Since the Devolution and Local Government Reform (LGR) White Paper launched just before Christmas 2024, local authority leadership groups have worked tirelessly to create their proposals for restructuring, whilst simultaneously ensuring that their existing council continues to deliver services in difficult times. Either one of these would be all-consuming at the best of times but the ambitious timelines set out by the Government and the recent announcements relating to this have added additional layers of complexity. We are here to help you navigate these challenges and can do so as follows:
Advice on the strategic issues, for example, how to make decisions that achieve best value duty without compromising the future unitary authority, for example in acquisitions, disposals and project work
Advice on practicalities of asset transfers (e.g. asset reviews, and particular title/terms), including identifying all assets in your possession, any liabilities attached to them (e.g. contamination, rights of way, third party interests) and the options available for transfer (particularly complex if a multiple unitary option is emerging).
Advice on disposal of surplus assets, including consideration of ‘best value’, public law duties, timings (before or after vesting day), overage and clawback.
Review of leasehold estate, including identifying term expiry, break clauses, termination/exit provisions.
As an Arbiter on disputes arising from the interpretation of the transfer regulations
Interpreting charitable objects and the transfer of charitable assets to a successor unitary authority
By providing you with additional capacity on your property, planning, construction and other needs in busy periods and helping you to achieve the necessary objectives ahead of vesting day.
Ongoing knowledge transfer, including developments in LGR, as well as changes to existing service provisions.
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