Several councils have passed motions demanding government refunds for costs incurred by the now-withdrawn with Local Government Reorganisation (LGR) plans.
The Government proposed changes in 2024, which involved introducing unitary local government in places where services are currently provided by both county and district councils. The government paused it in September 2026 to review the process following updated legal advice and council challenges. Basingstoke & Deane Borough Council passed a motion requesting that the government cover its £239,000 direct bill for LGR preparations. Similarly, Colchester City Council’s leadership has demanded a £336,400 refund for money spent preparing for the cancelled merger.
Burnley Borough Council, South Holland District Council and Portsmouth City Council passed similar motions, with Portsmouth heavily criticising the government’s sudden withdrawal from the initiative. In Broxtowe, Council Leader Milan Radulovic wrote directly to Communities Secretary Angela Rayner to request reimbursement, noting the council that his council incurred estimated costs exceeding £250,000.
The financial impact has been even more severe in upper tier councils, which have had the highest expenditure in preparation of reform. Devon County Council and the wider Devon area have spent approximately £2.1 million, with additional costs still being confirmed. Deputy Leader Councillor Paul Arnott stated Torridge District Council is currently coordinating a joint claim to the government for reimbursement. Meanwhile, Lancashire councils are preparing a response to the Ministry of Housing, Communities and Local Government regarding the management of £3.6 million in transition funding tied to the halted LGR programme.
Hampshire County Council presented a motion urging the government to repay the significant public fund and staff time spent on the halted reorganisation. The proposal also refers to allegations of “gerrymandering” and claims of “potentially unlawful decision-making” raised during the debate over the plans. Taking stronger legal action, Nottinghamshire County Council confirmed it has “issued a claim for judicial review” against the government’s LGR proposals. Council Leader Mick Barton argued if the government felt a pause was necessary and “its own decision should be reviewed”, then “the sensible course would have been to withdraw the original decision”.
George Finch, the leader of Warwickshire County Council, as well as Nuneaton and Bedworth Borough Council, said “money has been pulled out of frontline services to commit to LGR and now it hasn’t happened. There is time, money, people’s lives and people’s livelihoods and they [the government] have just delayed it.”
Reflecting on the broader LGR plans, Matthew Fright from the Institute for Government says that “Angela Rayner must now act to rebuild trust in the process.”
