Jim McMahon

The Government are committed to shifting power from Westminster and Whitehall to the places where people live and work. Yesterday’s Budget shows that we are committed to giving local leaders, local councils and local communities the tools to shape their future. But our ambition to rewire the state and ensure that the country is ready for devolution depends on strong, sustainable local government, and it is only through reorganisation that we will create those strong foundations. We know that reorganisation is difficult, but we also believe that it is worth it. The decisions we take now will be the building blocks for how the country is governed for generations to come. Our vision is clear: mayoral and strategic authorities, underpinned by strong unitary councils with real powers to take decisions in the interests of their communities. On 7 September, the Secretary of State announced a review of the programme to ensure that it was robust and aligned with the Government’s priorities. Since then, we have listened to local leaders, sector partners, mayors, and Members of Parliament. I place on the record our thanks to them for their work and for engaging constructively. Consensus will not always be possible, but I know that all of us are putting forward arguments for what we believe is best for the different areas of England. I am committed to hearing all those views before coming to final decisions. I also want to take a moment to recognise the impact on councils, councillors and their staff. I appreciate their desire for clarity. Today, I can provide some clarity on what comes next. I can announce to the House that the first phase of the review is now complete. I have tested the programme framework, including whether the criteria set out in February last year continue to support the Government’s priorities. I have concluded, on the basis of the programme, that it is robust and that the existing criteria are correct on their own terms and continue to support the Government’s policy agenda. We are content that we can take forward local government reorganisation in line with the existing criteria. In concluding the review, I have also considered the best way to bring clarity quickly while making sure that each area receives the deep and thorough consideration that it deserves. We will inform councils of outcomes at the earliest possible opportunity—with some areas getting those outcomes more quickly than others. Today, I am able to give further clarity on some of the 14 areas who had decisions in July. The Secretary of State and I have carefully considered all the proposals and the evidence for those 14 areas. Following that initial consideration, we are minded, subject to representations and parliamentary approval, to implement the following proposals in five areas: in East Sussex and Brighton and Hove, the two-unitary proposal, including the boundary changes requested by Brighton and Hove city council except for the parish of Falmer; the one-unitary proposal in Gloucestershire; the three-unitary proposal in Oxfordshire, including boundary changes; the two-unitary proposal in Warwickshire; and the two-unitary proposal in Worcestershire. Those decisions are for the same council structures that were previously announced in July, or they are new decisions following full and thorough consideration. Before final decisions are taken, there will be a minimum three-week period during which those who are interested may make further representations to me. The start and end date for that period will be confirmed shortly, as well as further details on how councils and other interested parties can make representations. Any final implementation decisions will be subject to the normal parliamentary approval. We are going to take more time on the remaining nine areas announced in July, and we will use the coming months to consider further the proposals submitted before coming to a view. To give councils clarity on the legal status of existing decisions we are withdrawing the decisions announced in July for the following areas: Derbyshire and Derby; Devon, Plymouth and Torbay; Hertfordshire; Kent and Medway; Lancashire, Blackburn with Darwen and Blackpool; Leicestershire, Leicester and Rutland; Lincolnshire, North Lincolnshire and North East Lincolnshire; Nottinghamshire and Nottingham; and Staffordshire and Stoke-on-Trent. I want to be clear that this is no reflection on the work underpinning those proposals. I can now set out the plan for the final phases of the review. The review will now focus on the 15 areas that are due to have a “minded to” decision. Those are, in no particular order, the nine areas I have just mentioned, the four areas where decisions were withdrawn in September, Cambridgeshire and Peterborough, and West Sussex. All options and proposals for those areas will remain under consideration, and I will approach them all with an open mind. As such, it should not be assumed that the same proposal will automatically be selected. It is important to allow the process to run its course and to allow full and proper consideration. We will move faster where we can, and some remaining areas may receive an outcome decision before others. I commit to coming back to the House with updates for another set of areas by Christmas, and every area will have an outcome by early next year. As we set out in September, the local elections scheduled for May 2027 will now go ahead to existing councils. That means that elections to new councils will be made in 2028, followed by a vesting day in April 2029. That is for all areas apart from Surrey. I have also heard concerns about cost uncertainty, and we appreciate that areas have incurred costs in good faith. All areas will receive half the transition funding that they were previously due, which equates to £450,000 per new unitary previously announced. Those guaranteed payments will be made in the coming weeks regardless of the outcome of the review. Cambridgeshire and Peterborough, and West Sussex, will also receive £500,000 per area. After final decisions, we will pay any remaining balance, depending on how many councils are chosen. I have heard from Members across the House about the pride, history and identity sitting behind our cities and counties. City status and ceremonial matters play a valuable role for local pride, so we will work with areas to ensure that city status is preserved following reorganisation. Subject to final decisions, we will continue to work with places to protect their city status by working through all the options, including bringing forward legislation where necessary—[Interruption.] Apologies, Madam Deputy Speaker. I have been struggling with a cold for about a week. Usually when a Minister comes up in the morning with a croaky throat it is the result of a long night of karaoke, but I am afraid this is the result of back-to-back LGR conversations all morning, which does not carry quite the same sense of fun or rhythm. I want to use this moment to build consensus and deliver a programme where central Government and local government work together. This programme must be a joint effort. It is the foundation of rewiring how our country works, and getting foundations in place to devolve new powers and functions in every area. This Government will be an active and reliable partner, and we stand ready to work with councils to support them to deliver these significant changes. I promise to keep the House updated, and I commend this statement to the House.