Local Government Reorganisation

Baroness Taylor of Stevenage Excerpts

Monday 26th January 2026 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, in 2024, councils were on the financial edge and sat as part of a patchwork map that did not make any sense to anybody—it did not to me, and I have been involved in local government for 30 years. The consequences of that and 14 years of funding cuts were the crisis in social care, the decline of our high streets, and councils not feeling empowered to build homes or grow their economies. Inevitably, this contributed to a decline in trust, and division on our streets, as people felt they had no say in the area they see every day when they walk out of their front door. This is important because, in the past, it had always been true that people had more faith and trust in their local council than in the Government, and that was starting to slip away.

I do not think anyone can dispute that, in July 2024, local government faced a crisis. Across this House, we may have differing views on how local government got to this point, but we cannot just snap our fingers and reverse the last 14 years. We can commit to a better future and to doing something different for that, with local councils empowered to make the right decisions for their communities and with communities really feeling empowered because they have councils that look after the full range of services that support them.

Let me be absolutely clear: this Government do not take lightly the postponement of elections. Democratic accountability is fundamental and of course elections are not optional. The vast majority of elections will be going ahead, but we are undertaking the most fundamental reform of local government for generations, and I think it is important that we are doing so.

These temporary postponements, where they have been requested, are intended to help us move to unitary councils quicker and strengthen local democracy, not weaken it. They apply only where the councils themselves have demonstrated a clear case, where reorganisation is already under way and where holding elections now would risk the transition to new councils by introducing confusion and duplication, and by wasting money.

Governments of all political colours have postponed local elections during periods of structural reform, including under the previous Conservative Government, and there is clearly statutory precedent for doing so. What would be truly irresponsible would be to press ahead with elections for authorities that may shortly cease to exist, and when councils party to those elections have told us they could put at risk services being ready for the transition to new councils.

Some have argued that the Government are acting out of political convenience. That argument does not withstand scrutiny. The postponements are driven by local views and circumstances, not partisan interest. Indeed, Liberal Democrat, Conservative and Labour councils have all come forward with concerns, on which we have acted. We have had that as formal feedback, but I have also had many conversations with local council leaders.

Those of us who have worked in local government know both the direct demands of running elections and the wider organisational impacts, including the diversion of critical senior officer time and focus during the pre-election period. Freeing up that capacity allows councils to prioritise service delivery and manage the reorganisation effectively. Running elections for short-lived authorities while simultaneously preparing for new unitary councils would impose avoidable expense while councils are focused on setting up new authorities and protecting front-line services.

Reorganisation, done properly, offers the opportunity to reduce duplication, clarify accountability and redirect resources to essential public services that have suffered years of neglect. Councillors’ terms are being extended for a clearly defined period, and fresh elections for the new unitary authorities will take place in 2027, once reorganisation proposals are agreed. Residents will have their say on stronger, more coherent councils, with one set of councillors with clearer responsibilities. This is a pragmatic decision, taken in partnership with local government, grounded in precedent and evidence, and focused on delivering better public services for the communities we serve.

I turn to the specific questions that the noble Baroness and the noble Lord asked me. The noble Baroness, Lady Scott, has mentioned the lack of a timetable several times, both here and during debates on the English devolution Bill. There is a very clear timetable. Something is clearly causing confusion here, but I will briefly set out the timetable again. For Surrey, there will be elections to the new unitaries in May 2026. In April 2027, the new unitaries will come into force. For the six devolution priority areas, the consultation is now closed. Decisions for them will be taken by March 2026. In May 2027, there will be elections to the new unitaries. In April 2028, the new unitaries will come into force. In May 2028, mayors will be elected to Sussex, Norfolk and Suffolk, Hampshire, and Essex mayoral combined authorities. For the remaining 14 areas, in February 2026, we will launch our consultation. By May 2026, the consultation will close. Decisions will then be announced around the time of the Summer Recess in 2026. In May 2027, there will be elections to the new unitaries and the new unitaries will come into force in April 2028.

We do not believe in imposing these things on local authorities, which is why we have done it in consultation, rather than sitting in MHCLG, drawing a map and saying, “That’s what it’s going to look like”. We have been working very hard with our local authorities. That is why we did not set the boundaries ourselves. We have asked local authorities to work together on geographies that made sense to them, which was absolutely the right way to go.

The noble Lord, Lord Pack, asked about the delaying of elections and this not being a new phenomenon. I have set out before in the House that this has been done by previous Governments when they were doing reorganisation. We have always set and maintained a high threshold for postponements. As we have done before, we are responding to serious concerns raised by councils in the reorganisation areas that the 2026 elections were putting at risk their ability to deliver on local government reorganisation.

The noble Lord asked me about the funding for elections. Spend on elections is, of course, a matter for local authorities. Our announcement was in response to representations received from councils in local government. Postponement, of course, also avoids the cost of holding elections to councils that are proposed to be abolished.

The noble Lord asked me about the cost to economic growth. We need to take a clear view on this: where councils cover all the services in their area and are empowered to take on economic growth, the delivery of housing, transport powers and all the things that drive the economic growth of their area, the aim is to have councils that are able to deliver that for their communities.

The noble Lord asked me about the Electoral Commission, as did the noble Baroness, Lady Scott. I have had two meetings with the Electoral Commission in the last 10 days or so. We have had discussions. I spoke to the Electoral Commission only last week when the announcement came out about the postponement of elections. I have spoken to the commission extensively about the elections Bill, which is coming forward shortly, and we will work very closely together on that Bill. We have also had some very positive discussions around the capacity issues, because the commission had a view that the capacity issues we were raising were around the capacity of election teams; election teams in local authorities, particularly in district councils, are quite small. It is not that capacity that I think councils and councillors were worried about; it is the wider capacity of local authorities to manage such a significant, once-in-a-generation reorganisation alongside these sets of elections.

I hope that has answered all the questions, but I am happy to take any more.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the noble Lord, Lord Pack, referred to the some 250 councillors who could face seven-year terms under the Government’s plans. Four of the county councils are majority-Tory led, and they last held elections in May 2021. Noble Lords will have to cast their minds right back: Boris Johnson was Prime Minister; since then, we have had two Tory Prime Ministers and, thus far, one Labour Prime Minister; Suella Braverman had only recently been sacked as the Tory Attorney-General—for the first time. Politics is changing fast, and sometimes the Government are asking electoral officials to act fast also. The Gorton and Denton by-election is going to be held on 26 February, on the fastest possible timetable. As a measure of the degree of change in that, I note that, at the last election, the Labour Party got more than 50% of the vote, and a notional calculation for 2019 gives the Labour Party 67% of the vote in that seat, but the bookmakers today have the Green Party as favourite to win that by-election. With politics moving so fast, is this not a particularly dangerous time to be postponing elections and not giving voters a democratic say? Is this not damaging and dangerous, threating the whole concept of democracy by taking it away from people when there is so obviously a desperate desire for change?

[Baroness Taylor of Stevenage (Lab)]

I am certainly not calling the result of the Denton by-election at this stage. I do not think we even have a candidate yet, so I think it would be unwise.

In response to the noble Baroness’s question on timing, we have been clear throughout that elections should go ahead unless there is strong justification otherwise. Many of the local elections that are due to take place in May will take place. We were very clear that if councils said they had no reason for postponement then we would listen to them, but that where a council voiced genuine concerns—we had significant evidence from those councils whose elections have been postponed—we would take it seriously. To make sure that everyone knows that this was not a rubber-stamp exercise, where anyone who asked for a postponement got it, there were two councils where we did not think the evidence was sufficient, Nuneaton and Bedworth and Pendle, and their elections are going ahead. We do not do this lightly. However, with an unprecedented reorganisation going on in local government, it is right that we took account of what local government was saying to us.

[Lord Jamieson (Con)]

Like my noble friend Lady Scott of Bybrook, as a councillor in central Bedfordshire I have already been through unitisation. That did not involve cancelling elections; in fact, we had an additional election after two years. We were able to do that because we had a proper plan that was locally developed and supported by residents. Is not the reason that elections are being cancelled that the Government do not have plan, do not know what is happening, and have not been communicating to councils and leaders what they should do or when they should do it? It is taking too long, and we end up in the difficult situation faced by council leaders of not knowing. Can the Minister commit that the Government will provide a clear timetable, as asked for by my noble friend, for local government reorganisation and for when elections will be held? Democracy matters; it is from where local government derives its authority.

[Baroness Taylor of Stevenage (Lab)]

I am afraid it was the failure to bite the bullet and get on with this kind of radical reorganisation for decades that has meant that we have decided that we cannot go on any longer with a broken system. Services in local government are not sustainable, the finance system is not working, and we now need to make sure that we get local government on the firm footing it deserves, that we are distributing funding more fairly, and that councils are the right size and shape to be effective to deliver efficiently key public services, as the public that we serve deserve, and drive forward our economy, housing and transport in the way that we all want to see, right across the country. The current system results in confusion and waste. We have got to get on with the job. We have had to take this unprecedented step to make sure that we are taking account of what local government tells us about its need for resources.

On the timetable, I have just set it out again. I do not understand the confusion about the timetable. We have been very clear about it and we will move ahead with that. Local authorities are working, and have worked, very well within the timetable we have set out. We work closely with them on that, as on all the other matters related to the reorganisation.

[Baroness Scott of Bybrook (Con)]

I too have been through this process. We are 15 months out from the next lot of elections and the new authorities, but these authorities do not yet know on what geography they are going to be based. To take Essex, it could be five or three, and the same is true with Norfolk and Suffolk, which could be three, four or five. Once you know that geography, I know, and I think leaders who went through what I went through will know, that one year is not a long time to deliver that change, particularly if you do not know what it is going to be at this time.

[Baroness Taylor of Stevenage (Lab)]

As I stated earlier, decisions on the six devolution priority areas will be made by March 2026. Their geographies will be decided by then. We are going out to consultation on the remaining 14 areas, and it is important that we do that. The local authorities have come forward with their proposals. We want to find out what the local views on them are, so they have gone out to consultation. That consultation closes in May 2026, and we will make decisions on the geography of those remaining authorities before the Summer Recess.

[Baroness Bennett of Manor Castle (GP)]

The Minister said, and I very much agree, that the officers, staff and structures of the councils that have asked for extensions are extremely stretched—I declare my position as a vice-president of the Local Government Association. One of the alternatives would have been for the Government to provide the resources to ensure that those councils were able both to hold elections and to continue with the plans for reorganisation. Can the Minister say whether the Government made any calculation for what allocation of funds from the Government here in Westminster would have been necessary to allow those elections to go ahead? What would the cost have been if those resources had been provided?

[Baroness Taylor of Stevenage (Lab)]

With respect to the noble Baroness, putting in new resources at this stage would not really help matters. Councils have their programmes of work under way. They are all working very hard on the reorganisation programme, as they are on the transition. They have an enormous job to do on working out the transition for key public services and on how they are going to drive growth and housing programmes going forward and put new resources into that. When you have new councillors and council officers coming in, it takes quite some time for them to get up to speed and be able to deliver at pace. Councils have considered that very carefully and will have made their own decisions. That is why we had 29 of them submit requests to postpone their elections.

[Lord Jamieson (Con)]

As there is still time, I will come back on a couple of things that the Minister said. The Minister spoke of the need for fundamental reform. Can the Minister answer the following questions that I have asked previously? What real additional powers, and what funding, will come to local government from the Government? Secondly, the Minister said that local government funding was not sustainable, so why, through the Government’s unfair funding proposals, will many councils suffer some of the sharpest cuts that they have seen?

[Baroness Taylor of Stevenage (Lab)]

The fair funding formula that we announced this year has given local government a significant increase in funding. Having spent the 17 years that I was a council leader cutting budgets every year, I know that has been a welcome change for some of our councils.

On the new powers that local councils will get, I know that we are in the process of considering the English devolution Bill and that we will debate it tomorrow afternoon. The seven areas of competence that are included in that are just the starting point for devolution. We want to see a widespread devolution of things that are currently decided in Whitehall; we want to see them being decided in local areas by local people. Once those combined authorities are established, the mayors will be able to apply for further powers that they see as necessary for their areas. It is important that those are driven by mayors. We have seen that existing mayoral areas have different needs. Some areas have a much greater need for powers on skills, for example, while others have greater need for powers on health and transport, and it can be all three. It is very important that that is driven at a local level. The very wide-ranging competences that we have set out in the English devolution Bill will enable local governments to take the powers that they need to drive their local areas forward. That is a huge move forward, and I welcome it.

House adjourned at 8.28 pm.