Local Government Reform

Will Forster Excerpts

Wednesday 10th June 2026 Westminster Hall

[Mr Will Forster (Woking) (LD)]

It is a pleasure to serve under your chairship, Dr Murrison. I thank the hon. Member for Harborough, Oadby and Wigston (Neil O’Brien) for securing this important debate. It is obvious that LGR is the Government running before they can walk. On so many issues, we Liberal Democrats push the Government to go further and faster—but not on this. Even McLaren, from my constituency, would think that the Government are going too fast and too furious.

Local government reorganisation has charged ahead without listening to councils and while ignoring residents. A layer of our local democracy is being removed and silenced. It very much feels as if Labour is reorganising local government for the sake of it, without rhyme or reason. Severe funding pressures are pushing local services to the brink. Vulnerable children, the elderly and the safety of our roads are suffering because of years of Conservative mismanagement and neglect, but rebranding and changing the face of the problem does not affect the way that something works—or, more importantly, the way it does not work. The Liberal Democrats believe that we need to fix our public services first and involve local people before we even think about redrawing lines on the map.

Of course, we still do not know why the Government have chosen to push ahead with LGR. Organisations, whether charities or businesses, always have a fully costed business case; they do not change the way they do things without one. I sit on the Housing, Communities and Local Government Committee, and it was clear from yesterday’s meeting that the Labour Government simply have not outlined their business case.

What we have here is an overly ambitious plan to reform all local government by 2028. There seem to be no reason other than creating “efficiencies”. In the meeting yesterday, when I asked the Minister how much money reorganisation would save, she said, “It is challenging to answer that question,” and, “Unitary councils tend to be more effective. I can’t give a direct answer.” I was surprised to hear that. That was the answer for a flagship Labour policy that would involve the largest change to local government for over half a century.

[Lewis Cocking]

I, too, sit on the Housing, Communities and Local Government Committee. Does the hon. Gentleman agree that the reason the Government are struggling to answer that question is that local government reorganisation will not save a single penny?

[Mr Forster]

We missed the hon. Gentleman at yesterday’s meeting. I agree; I fear that it will not save any money. The lack of evidence and a business case is a concern for me and the Liberal Democrats, and we expressed that at the Committee yesterday. I am sure he will be able to do the same next week when he joins us.

[The Minister for Local Government and Homelessness (Alison McGovern)]

Would the hon. Gentleman like to continue with the rest of what I said?

[Mr Forster]

I can do, but obviously I am going to pass over to the Minister in a bit.

If there are to be such monumental changes to the way we operate and run our society, we need to consult local people. Repeatedly, through this entire process, local views have been disregarded. Back in April, hundreds of people staged a protest against plans that would split the New Forest area into two mega-councils, as has already been referred to. More than 13,000 unhappy residents signed a petition calling for New Forest district council to take legal advice and pursue a judicial review. Local government reorganisation should be driven by councils and local areas, not dictated to by London. We are told that LGR is about efficiency and a fresh start, but the reality on the ground looks like absolute chaos. If anything, it is a setback.

We need look no further than Woking. Surrey county council was planning to make Arnold Road and Eve Road in Maybury safer and nicer, but the scheme has been kicked into the long grass and the council will not engage with me or the local residents it consulted about the plans. It has been palmed off on West Surrey council, which is being created next year. That is shocking. The situation is a prime example of how local government plans are grinding to a halt. Essential infrastructure is on pause as Ministers and civil servants reshuffle the system. LGR is causing delays and frustrating the lives of local people, who should not have to watch their community services decline while councils try to guess the future. That is all happening with no leadership or direction from the Ministry of Housing, Communities and Local Government.

The issues are rife elsewhere too. Shropshire council spends 80% of its budget on social care. It is a prime example of the financial pressure facing local services. Alongside underfunding, it has also had its funding cut. Care for the elderly is such a huge burden, because 25% of its population is over 65, and the lack of transport and other local services makes the provision of social care even harder.

The Government’s LGR is making it more difficult for areas to build homes, as councils are having to concentrate on LGR rather than the national housing crisis. My local authority, Wokingham borough council, has just started to draft a new local plan where local people get to decide where we build the homes we need. But next year it will be abolished. Labour’s manifesto pledged to build 1.5 million homes. Now it is making it more difficult for local areas to build and risk reneging on that manifesto promise.

Alongside the local plan, since coming to power in Woking, the Liberal Democrats have been trying to fix the mess left by others. Last year I helped secure a £500 million debt write-off from Woking’s debt that we inherited from the Conservatives.

[Damian Hinds]

Half a billion pounds?

--- Later in debate ---

[Mr Forster]

Half a billion pounds. We have had that debt write-off and we have also had exceptional financial support—known as EFS. The lack of understanding of that issue was apparent in yesterday’s Select Committee. The Minister says that they want to get through the fair funding review so that they have a better idea of what money local councils need, to fully enable local authorities to have multi-year funding settlements. I am fine with that, but it does not get rid of the need for cash and being aware of the lack of it. Referring to my earlier point that the Minister did not know how much money could be saved from reorganisation, it has already been mentioned by the hon. Member for Broxbourne (Lewis Cocking) that the Government do not have an assessment of how much this will save. That is not acceptable.

Councils need money, but we cannot put the money we save from local government reform back into services if we do not know how much will be saved in the first place. Councils have not been properly supported for the transition and, try as they may, they are without leadership from London, mainly because, as the Minister says, Labour is not in full possession of the information that it needs to make a success of it.

In Surrey we are the canary in the coalmine. The elderly, vulnerable and children are already suffering and Surrey county council is refusing requests under the guise of LGR. The whole system is breaking. The Minister and Government are making all this effort with these changes, yet are not actually addressing the problem. Ministers do not know how much to invest or what the savings will be. That is not solving a problem; it is creating new ones.

I understand that they have their work cut out—it is a big job and it is never easy. However, in that discussion yesterday, there are critical questions that needed answers. Looking ahead, addressing those challenges will be essential for anyone hoping to secure a role under Andy Burnham. If the Mayor of Greater Manchester becomes Prime Minister, he will be looking for a Local Government Minister who can answer these questions. I was disappointed with the Minister’s answers yesterday, but we still do not have an answer on how much money local government reorganisation will save, or why the Government have bulldozed through local democracy. I wonder if the Minister will tell Parliament the answers to those questions right now.