Government pauses local government reorganisation in LLR

Plans to reorganise local government in Leicester, Leicestershire and Rutland have been paused. 

Secretary of State for Housing, Communities and Local Government, Angela Rayner MP, announced a review of Local Government Reorganisation in the House of Commons this afternoon.

She told MPs that the 'rapid review' comes in light of new legal advice and will review the programme as a whole.

Angela Rayner said: “As we are now more determined than ever to devolve power closer to the people we represent, it’s only right that as a new secretary of state I make sure that everything we do is working towards that plan to change Britain, without delay.

“The prime minister told the House last week, he was prepared to look at local government reorganisation and he asked me as his Communities Secretary to do that.

“In that context, in light of legal advice, I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law. And secondly, I want to fully test whether our proposals for local government reorganisation meet the priorities of a new administration and a new prime minister and any additional considerations.

“I do not take this lightly. I recognise the huge amount of work that has already gone into progressing reorganisation in each of these areas, and I am very grateful for it.”

A cheer erupted in the chamber as the Secretary of State announced that Leicestershire is among the areas to be reviewed. Tory MPs have been vocal in their opposition to LGR plans in Leicester, Leicestershire and Rutland. Peter Bedford MP for Mid Leicestershire, Dr Luke Evans MP for Hinckley & Bosworth, Neil O Brien MP for Harborough, Oadby & Wigston, and Alberto Costa MP for South Leicestershire, were in the House to hear today's statement.

Reacting to the news, Scott Knowles, Chief Executive of East Midlands Chamber, said: "The pausing of Local Government Reorganisation should not prevent devolution moving forward at pace in Leicester, Leicestershire and Rutland. 

"While LGR is important, the priority in LLR must be securing a devolution deal that allows the region to elect a mayor tasked with securing investment, driving growth and putting it back on an equal footing with devolved areas. 

"We saw last week that council leaders across LLR back devolution. I hope Government remains receptive to this approach and that LGR does not distract from devolution."

Sue Tilley, Chair of Leicestershire Business Voice, added: "Local government reorganisation must not be allowed to delay devolution or the investment our region urgently needs.

"Leicester and Leicestershire is a £23 billion economy with the assets, ambition and business capability to contribute far more to UK growth. Governance structures matter, but they must not become a barrier to progress. We need clarity, pace and a firm commitment that our region will not be left behind.”

Leicester, Leicestershire and Rutland is one of 14 areas where LGR has been paused. 

The announcement means that changes including the expansion of the city’s boundary will be postponed. 

Leicestershire County Council has previously said it was open to exploring legal action related to the decision which was communicated by letter to local leaders in July. 

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