The Secretary of State for Housing, Communities and Local Government (Steve Reed)
With permission, Madam Deputy Speaker, I will make a statement on local government reorganisation.
This Government are taking action to repair local government, through a new fairer funding settlement based on need, through more powers being taken out of Whitehall and put in the hands of local leaders, and through our plans to reorganise councils to provide better services by eliminating wasteful duplication. Last month, as part of that process, I told the House that we would postpone local elections in councils undergoing reorganisation, where local leaders sought it and where they provided compelling, evidence-based justification. I was guided by two principles: first, that postponement should only ever happen in exceptional circumstances, and secondly, as a firm believer in local decision making, that we should be guided by local leaders themselves.
Following extensive consultation with the affected councils, many of whom shared their anxiety that a lack of capacity could lead to elections for councils that are due to be abolished delaying the reorganisation process, I concluded that those tests had been met in 30 cases. Councils across the political divide were engaged in the original assessment, and across party lines many called for postponement. Delay was granted in those cases, using a statutory power granted by Parliament—the same power that has been exercised by previous Governments. We were satisfied that the use of this statutory power in such circumstances was lawful and justified.
As is normal practice, lawyers kept the legal position under review and I received further legal advice. After considering that further advice, I took the decision to withdraw the proposal. We then rapidly reviewed the matter, recognising the urgency created by the electoral timetable. To confirm to the House, the decision made is that the elections in the affected areas will now go ahead in May 2026 in full, and we have laid a further order to bring this into effect.
We have already written to the relevant councils and we will continue working closely with returning officers, suppliers, the Electoral Commission and other sector bodies to ensure they are fully supported. I recognise that this is a significant change for affected councils. That is why, when further legal advice was received, we acted as quickly as possible to provide clarity for councils. We know that this change will mean additional pressure for councils and councillors across the country. That is why I announced last week up to £63 million in new capacity funding, on top of the £7.6 million provided last year for developing reorganisation proposals.
Our priority is now ensuring that local councils have the support they need for reorganisation. This extra money will help councils to complete reorganisation effectively and sustainably. We will continue working with councils across the 21 reorganisation areas to move to single-tier unitary councils. The people of Surrey specifically will just have elections to the new unitary councils.
Given the views expressed by Members from across the House following my decision, I recognise the importance Members attach to the framework governing ministerial powers over the timing of local elections. The English Devolution and Community Empowerment Bill provides an opportunity to look again at that framework, and the Government are reflecting carefully on the amendments that have been tabled and the concerns raised.
Reforming local government is not optional. Councils are the front line of the state, responsible for the visible signs of whether a place is succeeding or failing. The public expect better local services and they are right to do so. It was important that we acted swiftly on these elections where further advice was received. I recognise that has been difficult for affected councils and I want to assure colleagues that we did not take this difficult decision lightly. I have spoken to many councillors and Members of Parliament in recent days and understand the scale of disappointment acutely, but ultimately the Government must act when legal advice says that we need to do so. We will continue to rebuild local government after a decade of neglect, so residents get the services that they deserve. I commend this statement to the House.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Sir James Cleverly (Braintree) (Con)
I thank the Secretary of State for advance sight of his statement.
The Secretary of State has caused chaos, confusion and a significant cost to the taxpayer by cancelling local elections, only to reinstate them weeks later and then seek to avoid responsibility for the fallout. This is not an isolated incident: it is yet another Government U-turn. The unavoidable conclusion is that this Labour Government are running scared of voters.
The original decision to cancel elections was taken by the Secretary of State. He repeatedly defended that position at the Dispatch Box. He said in The Times that these elections were “pointless”, yet when his decision fell apart, he recused himself from the process and left a junior Minister to pick up the pieces. My first question is simple: why was the retaking of this decision delegated? Was the Secretary of State so compromised by his own actions that he could not lawfully retake the decision himself? Will the Secretary of State now place in the House of Commons Library the full correspondence that he would have disclosed had this gone to court? And if not, why not? What new factors were considered that led to a completely different conclusion ultimately being drawn?
There are also questions of motive. Is it really a coincidence that the elections first marked for cancellation were overwhelmingly in Labour-run areas? I have been in contact with council leaders who describe being placed under intense pressure, repeatedly asked to restate capacity concerns, warned through multiple channels not to criticise the Secretary of State’s decision, and being left with the clear impression that future devolution, future reorganisation and future funding decisions depended on their compliance—a shocking state of affairs under his leadership. I believe that he acted inappropriately. If the Secretary of State is so confident that decisions were taken without political self-interest and without undue pressure being exerted behind the scenes, he should place all correspondence between his Department and local authorities in the public domain. If he does so, I will be more than happy to withdraw my accusation of inappropriate behaviour.
Does the Secretary of State now accept that there are strict limits on the power to delegate or delay elections outside exceptional circumstances, such as war or public emergency? If so, will he ask his colleagues to accept the amendment tabled by Conservatives in the other place to limit the Secretary of State’s power to cancel elections using secondary legislation, given that Labour MPs voted down the same safeguards on Report in the Commons?
The Secretary of State must tell the House what this shambolic episode has cost the taxpayer in legal fees, wasted preparation and the emergency expenditure now required to organise these elections at short notice. There is also a question about election pilots. What is their current status and why have the Government still not published the prospectus or provided it for parliamentary scrutiny? Specifically, how many councils that originally said that they had the capacity to bid to take part in these pilots later told his Department that they lacked the capacity to hold local elections? How many of the councils with restored elections are now expected to proceed with the pilots?
Ultimately, where does this leave the Government’s flagship reorganisation process? Elections are the foundation stone of democracy. They are not a convenience to be switched on and off at the whim of the Secretary of State, which is why the Conservatives opposed these cancellations. The Secretary of State’s judgment has once again been shown to be fundamentally flawed. If he cannot or refuses to answer these questions, and to be open and honest about his behaviour, he should resign.
Steve Reed
I have received a letter from the shadow Secretary of State, and he will receive a response to that in due course.
The decision was updated following legal advice. We acted as promptly as possible after receiving that further legal advice, and that was the right thing to do. When decisions are revisited following legal advice, fresh ministerial consideration is perfectly normal and has happened before, and that was why that was done in that way. The right hon. Gentleman will know that there is a long-standing principle that Government do not publish or comment on legal advice. I know he knows that, because his words—spoken in November 2023—in this Chamber, were as follows:
“In accordance with a long-standing convention in this House, we do not discuss the content or nature of legal advice to Government.” —[Official Report, 9 June 2022; Vol. 715, c. 947.]
He was right about that.
The motivation of council leaders, who wrote to me to share their views, and indeed my motivation, was based on concerns raised across the political spectrum about the capacity to complete local government reorganisation on time, because of the benefits that that represents to voters in eliminating wasteful duplication and ensuring that the savings can be ploughed back into the frontline services that matter the most to local people.
On the right hon. Gentleman’s point about amendments tabled in the other place, the Government will consider amendments to these powers in the usual parliamentary way.
Mr Toby Perkins (Chesterfield) (Lab)
If the shadow Secretary of State is going to call for the Secretary of State to resign, he should make sure that he has more than four people sat behind him; that would make him seem more credible.
I appreciate what the Secretary of State is saying about the importance of elections and how rarely these things should be cancelled. We in Derbyshire have a proposal and expectation to move to unitary authorities in 2027. Does he agree that it is not illogical not to have elections to authorities that very soon will not exist? Can he tell us what lessons have been learned and what this will mean for authorities that are likely to be moving down this path in 2027?
Steve Reed
My hon. Friend is right to raise the importance of reorganisation and eliminating duplication so that we can spend the savings instead on the frontline services that I know matter the most to his residents and all our residents. Election delays have happened before—there is precedent for them—but it is important to show full respect to legal advice when it is received. The decision was therefore revisited in the way that he is aware of.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Gideon Amos (Taunton and Wellington) (LD)
Liberal Democrats believe that all authorities in England should be enabled to have the devolution deal and local government arrangement that is right for them.
The shadow Secretary of State asked whether this was an isolated incident; in the context of top-down reorganisation, this definitely is not an isolated incident. Under the last Conservative Government, top-down reorganisation was forced on to areas such as Cumbria and Somerset; it was bitterly opposed by local areas, yet it was forced on to those local communities against local opposition. Cumbria county council took the Conservative Government to court, and Somerset councils opposed the forced reorganisation. When opinion polls were taken across Somerset and the wide conclusion was that two authorities would be better than one, the Government forced those decisions on to Somerset. My first question is therefore this: if polls are taken in areas subject to top-down reorganisation, will the results from the public be supported by the Government?
Secondly, the Liberal Democrats opposed the postponement of these elections. We put down a fatal motion in the House of Lords that could have stopped the postponement in the first place, which the Conservatives failed to support. Given that nine authorities had their elections postponed in 2025, does the advice and rationale that apply in 2026 apply to the postponement that happened in 2025? If not, why not?
Steve Reed
The hon. Gentleman will be aware that I am unable to discuss the detail of the legal advice, although he will know the decision that we took after considering that legal advice. His earlier point is absolutely right; we should all be motivated by the interests of local people. It is in the interests of local people that we should get rid of the confusion of having two councils in the same area, so that people know which council to contact, and that we should eliminate the wasteful duplication of jobs such as chief executives, finance directors and so on, so that we can spend the savings on improving the local services that make a difference to local people and the communities that they care about so much.
Steve Race (Exeter) (Lab)
The reorganisation of local government is very welcome in Exeter, as we are being held back by our county council on numerous fronts. Can the Secretary of State confirm that reorganisation and devolution will enable cities such as Exeter to pull away with our economic development, housing and strategic planning, and will benefit local residents across the city?
Steve Reed
I completely agree with what my hon. Friend says. It is very important that we move ahead with local government reorganisation, not just because of the savings it generates, which can be ploughed into frontline services, but because of the boost it can give to local economies. That puts more money into people’s pockets, provides more jobs in the locality and helps those communities to thrive.
Lewis Cocking (Broxbourne) (Con)
Having decided that elections should go ahead after all, will the Secretary of State join me in congratulating Conservative-run Broxbourne council on defending democracy from day one and never once considering delaying its elections? Will he confirm that this Labour Government will not use the same tactics to delay the next general election?
Steve Reed
I think that last point is a step beyond where anybody has gone previously. I am sure that there are many reasons to congratulate Broxbourne council.
Jonathan Davies (Mid Derbyshire) (Lab)
Local government reorganisation in Derbyshire might see Amber Valley borough council split in half, along with the cost and difficulty of working out how to disaggregate the authority and the services and private finance initiative contracts it still manages, but an outcome is needed that will work for the next 100 years and that is based on the time it takes people to travel to work and the services they access. May I ask the Secretary of State to take a special interest in the circumstances of Amber Valley borough council and ensure that it gets the support that it needs so that it can be part of a new authority that can serve people’s needs effectively in the county?
Steve Reed
My hon. Friend always ensures that I take a special interest in Amber Valley and the impact of decisions on the people who live in that beautiful part of the world. We have announced additional capacity funding to help councils to deal with the kind of challenges that he just described, recognising that reorganisation has a capacity impact on local authorities.
Sir Julian Lewis (New Forest East) (Con)
I realise now that it was simply fresh legal advice that led to this change of policy, rather than anything to do with the court case brought by the Secretary of State’s least favourite political party. Does he agree that the Government, in handling local government reform, should give at least an appearance of being impartial? Despite the Government’s consistent advice that the existing district and borough council areas should be seen as the building blocks for the new unitary authorities, Labour-controlled Southampton city council is still insisting on trying to dismember the New Forest East constituency by going for boundary changes that would strip off the Waterside, near Southampton, from the New Forest, to which it has always looked. Will the Secretary of State assure me that when he and his colleagues take decisions on this and similar issues, the fact that it is a Labour-led council asking for the guidelines not to be followed will not weigh on them in an appropriate way?
Steve Reed
I reassure the right hon. Gentleman on his latter point. I also reassure him that concerns have been raised across the political spectrum, including by council leaders from his own party, about the capacity to complete local government reorganisation. That is why we have announced additional capacity funding to support those councils to be able to complete this important reform. The consultations are still under way on the exact form of the reorganisation that will take place, and it would be wrong for me to comment on that today.
Peter Lamb (Crawley) (Lab)
I have great respect for the Secretary of State; I believe that he is one of the finest Ministers on this Government’s Front Bench, and I have great sympathy for him. The reality is that at times, we have all been presented with advice that has proven to be poor. Frankly, the reality that a lot of us are aware of is that he inherited a mess when he moved away from the very fine job he was doing in the Department for Environment, Food and Rural Affairs to his current Department.
The Ministry of Housing, Communities and Local Government will not publish figures to indicate the savings that this work will allegedly generate. The only figures we have available are those produced by PricewaterhouseCoopers, which have been quoted by Ministers previously. When we look through the figures at the geographical sites that we are talking about, we see that there are no savings through local government reorganisation, particularly when the wider public sector reform agenda is being taken apart by larger police areas and changes to the size of integrated care boards. On that basis, we are undertaking a situation in which there will be significant financial costs to the local authorities but none of the savings that are currently projected. If the Government have contrary figures, I welcome the publication of them and of the advice. The sizes that we are talking about are 14 times larger than the next largest authorities in Europe, with a greater diameter than Greater London and without any community of interest, so given that this will leave Labour communities at the mercy of right-wing councils—
Peter Lamb
Immediately, yes. Given that poor advice has previously been given by the Department to the Secretary of State, is it not time to pause and reconsider the evidence base for local government reform?
Steve Reed
I thank my hon. Friend for his question, and of course recognise that he is one of the finest constituency MPs in the House—it was a delight to campaign for him, and it is a pleasure to see him in his seat now. We have had this conversation before, and it is quite right that we continue to have it, but I do not agree with his analysis; there are savings that will derive from local government reorganisation, and it will also make the system simpler for local people to understand. However, I know that the debate will continue.
Alison Bennett (Mid Sussex) (LD)
Building on the point made by the hon. Member for Crawley (Peter Lamb), the £63 million of new capacity funding is a drop in the ocean compared with the real cost of LGR across the country. We are talking about councils having to merge workforces, IT contracts and outsourced contracts, none of which has been properly funded by central Government. These are authorities that are highly leveraged and do not have the reserves to pay for it. What is the Secretary of State’s assessment of the true cost of local government reorganisation?
Steve Reed
I have announced additional funding. It is very unfair to describe it as a drop in the ocean, because it goes a long way towards supporting councils that need to go through local government reorganisation to remove anomalies, such as that people in two-tier areas have one council that is responsible for leaves above a drain and another that is responsible for leaves below a drain. If residents do not know which council to contact, it is very difficult for them to seek improvements in the services they are using, which is why it is so important that we continue with this process.
Lincoln Jopp (Spelthorne) (Con)
I thank the Secretary of State for his statement. He mentioned Surrey, and he will know that my constituency is going to be in a unitary authority called West Surrey. I have received a huge number of representations from constituents who would like the Secretary of State to consider calling that unitary authority West Surrey and South Middlesex, to take account of the fact that Spelthorne has been in Middlesex for 1,000 years and has never really thought of itself as being in Surrey. Will the Secretary of State meet me, so that I can make further representations on my constituents’ behalf?
Steve Reed
I am always happy to consider proposals made by the hon. Gentleman, and I will ensure that he gets an appropriate meeting on the point that he has raised, either with me or one of my fellow Ministers.
Josh Babarinde (Eastbourne) (LD)
I welcome the news that the people of East Sussex and Eastbourne will at last have the chance to vote to boot out a Conservative-run county council that has attempted to close a learning disability centre for local people, Linden Court; that has attempted to strip back services at Milton Grange for people with dementia; and that has the worst pothole compensation rate of any Conservative-run council in the country. However, will the Secretary of State pledge to not just me or the people of Eastbourne, but the people of East Sussex, that he will not disrespect their right to democracy next year when they are meant to have the right to vote for unitary councillors in our patch?
Steve Reed
I am happy to give the hon. Gentleman the reassurance that he seeks. During recess, I had the pleasure of visiting East Sussex, and from my own experience, I agree with what he has said about the potholes in many parts of that beautiful county.
Richard Tice (Boston and Skegness) (Reform)
The Secretary of State conveniently forgot to mention that he has been caught red-handed trying to cancel elections, and that he has restored them only because of the legal action of Reform UK. I do not expect him to thank us, but could he at least do the decent and honourable thing and apologise for the confusion and chaos caused to hundreds of council officers across the country, apologise to some 5 million voters, and then resign?
Steve Reed
I will not make any apologies for listening to local leaders or for respecting legal advice. If the hon. Gentleman is looking for things that people should resign over, how about the decision to appoint as the leader of Reform UK in Wales a man who was a traitor to his country, and who is now serving 10 years in jail?
Dr Ben Spencer (Runnymede and Weybridge) (Con)
What about the cancelled mayoral elections, such as those in Sussex and Hampshire? Do not the same arguments that the Secretary of State has made apply to those elections, or is he just afraid of our candidates, Katy Bourne and Donna Jones?
Steve Reed
That decision was taken under different legislation and in different circumstances. It is very important that local government reorganisation is completed before going ahead with the mayoral elections, to which we remain committed, so that this happens in an ordered way.
Jess Brown-Fuller (Chichester) (LD)
West Sussex county council should never have been offered the opportunity to postpone for a second year running, effectively gifting the Conservative-controlled administration a seven-year term. Now, with democracy restored, there are just 74 days until the polls, so will West Sussex still be expected to work to the original timescale for the creation of unitary authorities and a combined authority that will sit with the mayoralty, or will that also be delayed? How much additional support will be provided to the council, and specifically to the staff at West Sussex, who are now working to a very tight schedule to deliver elections for their residents?
Steve Reed
We are proceeding to local government reorganisation on the agreed timetable, with no changes envisaged. We have made additional funding available to support capacity needs, to ensure that reorganisation can go ahead as expected, and I am not aware of any concerns from councils about their ability to deliver these elections. Indeed, councils have delivered snap general elections across the whole country in less time than remains between now and the date of the local elections in May.
Mike Martin (Tunbridge Wells) (LD)
This has been a shamefully incompetent episode, and perhaps the most shameful part of it is that the Government have been forced to use taxpayers’ money to pay the claimant’s costs. Could the Secretary of State tell us exactly how much taxpayers’ money has been given to the claimant? Perhaps if he cannot do so, the hon. Member for Boston and Skegness (Richard Tice) could let us know.
Steve Reed
That is certainly not an unusual circumstance in cases that end up in the courts in this way. The costs are still being assessed, so I am afraid that I cannot give the hon. Gentleman an answer to that question at the moment.
Ben Maguire (North Cornwall) (LD)
As recently as 22 January, this Government formally committed to delaying local elections again, but facing defeat in the judicial review, they suddenly realised that the delay was unlawful. This U-turn has cost £63 million at a time when my own local authority in Cornwall faces a massive funding shortfall. Legal advice does not usually suddenly change without a material change in facts, so did the Secretary of State ignore the Attorney General’s legal advice on this matter until it became obvious that the Government would lose, or did the Attorney General provide incorrect legal advice to the Secretary of State? Which is it?
Steve Reed
The hon. Gentleman will be aware that I am unable to discuss the detail of legal advice that was given to the Government, but there is nothing unusual at all about giving fresh ministerial consideration when decisions are revisited after legal advice is received. That is what happened.
Mr Will Forster (Woking) (LD)
Given that the Government have now reversed their decision to postpone the 2026 local elections following legal advice, can the Secretary of State confirm whether the same legal considerations also applied to the elections to Surrey county council—which covers my constituency—that were postponed last year? If he states that the Government do not comment on legal advice, do you not agree, Madam Deputy Speaker, that my Woking constituents have been unlawfully robbed of voting out an incompetent Surrey county council last year?
Steve Reed
As I said in my statement, the unitary council elections will be going ahead in Surrey this year.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for his endeavours. I note that this reorganisation is set to streamline services and save an estimated £2.9 billion over five years. However, from my experience—I am not better than anybody else, but I always try to be helpful—I issue a note of caution. With Northern Ireland 10 years on from our reform of councils, a 2024 Department for Communities report concluded that it is too early to determine whether those reforms have been cost-effective, with the new, larger councils actually spending more than their 26 predecessors. Has the Secretary of State taken into account that report and that uncertainty, and has he ensured that the Government are not promising billions of pounds in savings while actually taking more from taxpayers and ratepayers?
Steve Reed
I thank the hon. Gentleman for his question and his observations, but I remain confident that eliminating duplication where residents are paying for two sets of councillors, two sets of chief executives and two sets of finance directors will save residents money, which can then be invested in the frontline services that matter most to people; for example, it can be used to fix the potholes that we heard about earlier.