Local government reorganisation in England seeks to streamline councils, enhance services, and increase efficiency—but could threaten local identity and accountability. In this latest LocalGov ‘Need to Know’ guide, we break down what reorganisation involves and explore its key benefits and challenges.

Local government reorganisation refers to changing the structure, functions, and responsibilities of local councils in England. It often involves merging or restructuring councils to improve efficiency, accountability, and service delivery.

The Government’s plans for local government reform

In December 2024, the Government published its English Devolution White Paper, setting out plans for a new wave of local government reorganisation. The aim is to move away from England’s two-tier council system—currently in place across 21 county regions—and replace it with unitary councils delivering all local services in one area.

The Government also intends to review existing unitary councils where there is evidence of poor performance or inefficiency. According to the White Paper, new unitary councils should generally serve populations of 500,000 or more to achieve economies of scale, improve capacity, and withstand financial pressures—although exceptions may apply.

Arguments for local government reorganisation (LGR)

The Government argues that reorganising councils into unitary authorities will reduce duplication, streamline decision-making, and save money. A 2020 PwC report estimated that full reorganisation across England’s two-tier areas could cost £400m but deliver £2.9bn in savings over five years.

By bringing together county and district functions, unitary councils are expected to deliver more integrated services, improve local accountability, and make collaboration easier with other public service providers. The White Paper also links reorganisation to the Government’s ambition for the ‘biggest transfer of power out of Westminster’, paving the way for more devolution to local and combined authorities.

Arguments against local government reorganisation

Critics warn that creating larger councils could make local government more remote from communities, weakening local representation. The proposed population threshold of 500,000 could see large counties like Kent or Surrey split into multiple unitary councils, reducing their historic identity and local connections.

The District Councils’ Network (DCN) supports reform in principle but argues that the 500,000 population target is arbitrary and lacks evidence. It warns that overly large councils could struggle to deliver place-based services, particularly in rural areas, and that reducing councillor numbers could harm democratic accountability.

The DCN also questions whether larger councils would deliver savings quickly, arguing that reorganisation may distract councils from providing essential frontline services.

The future of devolution and local reform

The Government’s devolution and reorganisation agenda could reshape how local services are delivered across England. While supporters highlight efficiency and stronger local leadership, opponents stress the risk of losing local identity and responsiveness.

Whatever your position, one thing is clear: local government reorganisation will play a major role in defining the future of devolution, accountability, and service delivery across England.