Devolution and Local Government Reform Update Q1: what happened at the start of 2026?
- 11 hours ago
- 4 min read
The following update provides you with the key news relating to devolution and local government reorganisation (LGR) during the first quarter of 2026.
LGR process reaches consultation phase
The Ministry of Housing, Communities & Local Government (MHCLG) has now launched consultations for the remaining 14 areas undergoing local government reorganisation. In total, 52 business cases are currently under consideration.
All areas submitted at least two proposals, with some areas putting forward up to five different options. Every proposal submitted has progressed to the public consultation phase, demonstrating the scale of change currently being considered across England.
Five district councils did not submit a proposal. These were Ashfield District Council, Broxtowe Borough Council, Derbyshire Dales District Council, Forest of Dean District Council and West Lindsey District Council.
The consultations will run until 25 March 2026. Once the consultation period has concluded, the Government will review the proposals against the criteria set out in the original invitation letters and consider whether the proposals are to be implemented, with or without modification.
At present, it is not yet clear when the Government will announce its decisions following the consultation process.
Government abandons plans to delay elections for 30 councils in England
The Government has abandoned plans to delay elections for 30 councils in England after receiving legal advice that postponing the polls could be unlawful.
MHCLG had previously invited 63 councils to consider delaying their elections so that they could prioritise work on local government restructuring. Twenty-six borough, district and unitary councils across England, alongside four county councils, had agreed to this proposal.
However, following the legal advice received, the Government has reversed its position and confirmed that all local elections will now go ahead in May 2026.
This decision means that many councils will now need to manage the competing pressures of progressing reorganisation proposals while also preparing for elections.
Government to provide funding to councils to help with reorganisation costs
The Government has announced that it will release up to £63 million in additional capacity funding to support councils across the 21 reorganisation areas.
This funding is intended to help local authorities manage the significant workload associated with delivering local government reorganisation. It builds on the £7.6 million previously allocated to support the development of reorganisation proposals during 2025.
The Government has acknowledged that councils are facing genuine pressures as they attempt to manage both the restructuring process and resource-intensive election preparations simultaneously. The additional funding is therefore aimed at providing councils with the capacity required to deliver both effectively.
Our survey reveals concerns about how LGR will impact regional estates management
A recent survey carried out we carried out highlights concerns among local government professionals about how LGR may affect regional estates management.
Some 46% of respondents, including heads of asset teams, in-house lawyers and surveyors, said they were not confident that the latest devolution proposals would improve regional estates management. A further 31% stated that they were unsure, reflecting the significant uncertainty currently facing local authority teams.
Respondents also expressed concerns that replacing smaller, localised authorities with larger councils covering wider geographic areas could negatively impact decision-making about assets. In particular, there were worries about the ability to make decisions at a local level, how assets would be optimised across larger regions, and how funding would ultimately be allocated.
Concern was particularly strong in areas where rural and city councils may merge. Many respondents feared that funding which historically supported rural or coastal communities may instead be redirected towards cities once new authorities are formed.
Deep dive: Devolution and coastal areas
Christopher Kerr, Head of ESG, has explored the potential impact of devolution and local government reorganisation on coastal communities in a recent article.
The article highlights a number of key themes, including:
Why decentralisation is particularly important for coastal communities
How devolution could play a significant role in supporting coastal regeneration if implemented effectively
The need to ensure that coastal perspectives are properly represented in new governance structures
The importance of strategic planning that considers the needs of the wider region as a whole
The risks facing coastal towns where the current local authority headquarters may be located elsewhere following reorganisation
The need to address potential local leadership gaps that may arise as governance structures change
These issues demonstrate that while devolution may create opportunities for coastal areas, careful planning will be required to ensure that these communities are not overlooked during the restructuring process.
LGA launches LGR Toolkit
The Local Government Association (LGA) has launched a new Local Government Reorganisation Toolkit designed to support councils involved in the restructuring process.
The toolkit provides guidance and practical resources to help councils navigate the complex process of reorganisation, including areas such as governance, workforce planning, service delivery and asset management.
Its aim is to help local authorities better prepare for the structural changes that will accompany the creation of new unitary authorities.
How we can help
Since the Devolution and Local Government Reform (LGR) White Paper was published just before Christmas 2024, local authority leadership teams have been working intensively to develop restructuring proposals while continuing to deliver essential services.
Either of these tasks would be challenging on their own. However, the ambitious timelines set by the Government, combined with the ongoing announcements and policy developments, have created additional layers of complexity for councils across England.
We are here to support local authorities as they navigate these changes and can assist with the strategic, legal and practical challenges that arise throughout the reorganisation process.
Download the full document here:
