William Eichler 21 October 2025

Reorganisation plan promises £44m annual savings

Reorganisation plan promises £44m annual savings image
© SevenMaps / Shutterstock.com.

A draft plan published today sets out how reorganisation across Leicester, Leicestershire and Rutland could deliver savings of £44m a year in part by streamlining staffing and reducing councillor numbers.

Billed as a ‘once-in-a-generation opportunity,’ the North, City, South proposal outlines the creation of three new unitary councils alongside a mayoral strategic authority.

Each authority would serve around 400,000 residents, covering North Leicestershire and Rutland, South Leicestershire, and Leicester City – with Leicester’s current boundaries retained.

The plan focuses on building more prevention-based services and driving efficiency through shared procurement and rationalised assets.

It also sets a timetable for devolution, proposing a mayoral election in 2027 to unlock new powers and funding for jobs, skills, housing, and infrastructure.

Cllr Pip Allnatt, leader of Melton Borough Council and speaking on behalf of the leaders of the North, City, South councils, said: ‘North, City, South makes a strong case to deliver devolution alongside local government reorganisation. This will unlock investment, create jobs, and boost prosperity. The approach reflects feedback from businesses and stakeholders who support these ambitions.’

‘It also outlines a once-in-a-generation chance to shift from treating symptoms to tackling root causes, getting support to people earlier.’

Want to learn more about local government reorganisation? Check out: Local Government Reorganisation: What It Means and Why It Matters.

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