Local Government Reorganisation update: Decision reached over reorganisation across four councils in England.
The Secretary of State for Housing, Communities and Local Government, Steve Reed, has formally announced the government’s decisions regarding Local Government Reorganisation (LGR) for four of the six areas that submitted proposals in September 2025. These are:
- Essex, Southend-on-Sea, and Thurrock
- Hampshire, the Isle of Wight, Portsmouth, and Southampton
- Norfolk
- Suffolk
This landmark move will see the creation of five new unitary authorities within the combined areas of Essex, Southend-on-Sea, and Thurrock, as well as an additional five unitaries covering Hampshire, the Isle of Wight, Portsmouth, and Southampton. Meanwhile, the counties of Norfolk and Suffolk are set to be reorganised into three unitary authorities each.
Decisions for the remaining two areas – East Sussex and Brighton and Hove, and West Sussex – have been deferred. The government cited the need for further consultation due to specific concerns regarding the initial proposals.
To support this transition, the government has confirmed a £63 million transition fund to be distributed across the reorganising areas. Furthermore, in a significant move to address local government insolvency, the Secretary of State committed to the central repayment of £200 million of Thurrock Council’s debt during the 2026-27 financial year.
Looking ahead, the government remains committed to its established roadmap for these structural changes. New unitary council elections are scheduled to take place in May 2027, providing a one-year transition period before the new authorities officially “go live” and begin delivering public services in April 2028.
