Local Government Reorganisation decision withdrawn

Government has today announced it has withdrawn its decision on Local Government Reorganisation in Leicester, Leicestershire & Rutland. 

In July 2026 a plan to create two new unitary councils - one for the city covering an expanded footprint and another for the rest of Leicestershire and Rutland - was approved by ministers.

In September, Government announced that decision and those impacting other areas, were to be placed under review. 

Today, Minister for Local Government, Devolution and Regional Growth, Jim McMahon OBE, updated Parliament on the results.

He said: “Yesterday’s budget showed that we are committed to giving local leaders, local councils and local communities the tools to shape their own future. 

“The decisions that we take now will be the building blocks for how this country is governed for generations to come.”

He confirmed that withdrawing the decision does not mean reorganisation has been cancelled and proposals remain under consideration. Every area will have an outcome by early next year.

East Midlands Chamber Chief Executive, Scott Knowles, said: “Today's decision for the vast majority of Local Government Reorganisation decisions made earlier in the year to be withdrawn, including for Leicester, Leicestershire and Rutland, should now allow yesterday's announcement following regarding a Strategic Mayoral Authority for the city, county and Rutland to be the sole focus of driving enhanced future investment into the region.

“Devolution Leicestershire and its partners have always considered that Devolution and Local Government Reorganisation are two distinct processes - Government's announcement to withdraw recent LGR decisions ratify that the two programmes are not wedded to each other, as has been proven elsewhere.”

Local elections in impacted areas will go ahead in May 2027 on existing council boundaries, providing what the MHCLG describes as ‘certainty’ for local leaders and communities.  

New councils will be established for 2029, with elections to shadow councils in May 2028.

Following the announcement, Leicester City Mayor Sir Peter Soulsby told the BBC: "I'm very disappointed the government is continuing to delay the decision on local government reorganisation for our area.

"This uncertainty will make it very difficult for us to proceed with the work needed to create a mayoral strategic authority."

In an update shared online by Leicestershire County Council leader, Dan Harrison, said: “It’s true that reshaping local councils can offer huge benefits. I remain convinced that the proposal we submitted to Government, simplifying services, saving £40m a year and empowering communities, offers the best solution for the future.

“But national decision making has been shambolic at best. The Government asked councils to draw up proposals, agreed them, paused them, backtracked and now says there’ll be updates later this year. You couldn’t make it up.”

He added: “Yesterday’s announcement about devolving powers to our area is a step in the right direction. It offers an opportunity to build a better Leicestershire. 

“A new mayor offers new money and a new Mayoral Strategic Authority is the strongest platform for growth and investment for the people of Leicester, Leicestershire and Rutland.”