House of Commons · Written Ministerial Statement
Local Government Reorganisation
25 March 2026 · Ministry of Housing, Communities and Local Government
Proposed by Steve Reed Lab Croydon North
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Local government in England will see the end of two-tier systems with the introduction of single-tier unitary councils.
- Six areas have been identified for unitarisation, with the proposals needing Parliamentary approval to proceed.
- A commitment to provide transition funding for the new unitary authorities and to repay 200m of Thurrock Council's debt in 2026-27 has been made.
Issue summary
The statement addresses the reorganisation of local government in England by ending two-tier systems and implementing single-tier unitary councils.
Action requested
The minister announces decisions for six areas proposing unitarisation, with implementation subject to Parliamentary approval. Transition funding is allocated for new unitary authorities, and a commitment to repay £200m of Thurrock Council’s debt in 2026-27 is confirmed.
Key facts
- The government invited councils in 21 areas to submit proposals by 26 September 2025.
- Proposals for Essex, Southend-on-Sea and Thurrock, Hampshire, Isle of Wight, Portsmouth and Southampton, Norfolk, Suffolk were received and decisions made.
- Transition funding of £900,000 is provided for each new unitary authority, with varying amounts allocated based on the number of councils in each area.
- £200m will be repaid as part of Thurrock Council’s debt.
- The government will bring into operation statutory powers to prevent excessive borrowing risks.
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