Upcoming Local Government Restructuring: What It Means for You

Eighteen local councils in England have formally requested to delay their upcoming May elections until next year to facilitate significant structural changes to local government. The proposed postponements are part of a broader effort to create unitary authorities —streamlining service delivery and governance by merging district and county councils. 

What’s Happening? 

The government is considering these requests, with Local Government Minister Jim McMahon stating that a “high bar” will be set for approval. The aim is to ensure that elections are not held for councils that are set to be dissolved, thereby avoiding unnecessary costs and administrative burden. If approved, temporary “shadow authorities” will be established, preparing for the full transition to new unitary structures by 2027 or 2028. 

What Does This Mean for the Sector? 

The restructuring will have several key impacts, particularly concerning funding, governance, and local engagement: 

• Changes in Funding Structures – With district councils being absorbed into unitary authorities, funding will be allocated at a central level rather than locally. We will need assurances that local priorities will still be considered. 

• Delays in Funding Decisions – As new structures are established, there may be temporary delays in funding distribution while responsibilities are reallocated. 

• Uncertainty Around Key Contacts – During the transition, it may take time to identify the right points of contact within the new governance structures, potentially impacting sector collaboration and decision-making. 

Ultimately, whilst it is clear that there are administrative benefits to becoming a unitary authority, and a streamlined, centralised local authority could well be easier to navigate, the concern is that losing the local district insight and connections could disadvantage groups and activities that are not so well known centrally.  

The Debate and Next Steps 

The District Councils’ Network has raised concerns that larger unitary councils could reduce local decision-making and community representation. Political figures have voiced differing opinions - some emphasising efficiency and cost savings, while others worry about financial risks and a loss of democratic accountability. 

The government is expected to decide on the election delays by the end of the month. 

The Rural Perspective: Funding Inequities Must Be Addressed 

The Rural Services Network (RSN) continues to express deep concern over the significant disparities highlighted in the latest local government finance settlement stating that the funding allocations continue to disadvantage rural communities, where residents already face higher costs and reduced services compared to their urban counterparts. Read more here. 

Key figures from RSN’s analysis reveal the stark inequality: 

• Residents in predominantly rural areas pay 20% more in council tax on average than those in urban areas. 

• Government-funded spending power in urban areas is 41% higher than in predominantly rural areas. 

Commenting on the settlement, RSN Chair Cllr Roger Phillips states: 

“The data speaks volumes about the disparities that risk widening the urban-rural divide further - something we are determined to avoid. Rural areas are not asking for more than their fair share; they are demanding a fair chance to serve their communities adequately. We seek fairness, not favouritism.” 

Update 17th February 2025

The consultation is now open for communities and businesses to have their say on the proposed Unitary Council Authority for Suffolk and Norfolk as part of the devolution process. Information on the proposal can be found here and the survey here. Closes 13 Apr 2025.

Update Tuesday 11th March 2025.

The case for creating three unitary councils for our region, set out in the 18 March council report, also supports one of them being a Greater Norwich – based on urban boundaries. Read more here.

City councillors will be asked to vote on the recommendation to make the case to Government for creating three unitary councils as part of its plans for local government reorganisation in our region.

The city council’s interim submission will be presented to council for consideration and recommendation on 18 March ahead of cabinet on 19 March. Cabinet will consider and approve the submission to Government on 21 March.

Findings from this initial business case will be considered by all district councils at their respective full council meetings, week commencing 17 March.

This will present the work jointly developed by Norfolk’s district councils which has ranked the three-unitary model as the highest against Government criteria.

The districts will continue to work together to develop this option further for a final submission to Government in September, including a full business case.

According to the Government’s timetable, new unitary councils for Norfolk will be live by May 2028.