Agenda item

Local Government Reorganisation Proposals

Report attached.

The full Business Case for the 3 Unitary Authority Model is available by clicking the following link:

https://www.hyndburnbc.gov.uk/download/lgr-the-business-case-for-three-unitary-authories-in-lancashire/

Minutes:

With the approval of the Mayor in advance of the meeting, the following decision was exempted from the Council’s Call-In procedure in accordance with Overview and Scrutiny Procedure Rule C14, on the grounds that the decision was reasonable in all the circumstances and was an urgent decision not subject to Call-In, in view need to finalise the submission of the proposals to the Government by 28^th November 2025.

Members considered a report of Councillor Munsif Dad BEM JP, Leader of the Council, updating Cabinet on preparations to submit a proposal for Local Government Reorganisation to the Government and presenting the business case that had been prepared to support the creation of three unitary authorities in Lancashire (3UA).

The Leader provided a brief introduction to the report, highlighting the overall aim of the proposals, the work undertaken in Hyndburn to date, the key messages from the case for a 3UA model and the disadvantages of the other models being proposed. Councillor Dad also summarised the discussions which had taken place at the Resources Overview and Scrutiny Committee on 11^th November and at the Council meeting on 13^th November 2025. He also outlined the case in favour of postponing the local elections in 2026 and the next steps in the overall processand timescales.

Councillor Kimberley Whitehead spoke in favour of the 3UA model, which was conterminous with NHS and Police area footprints. Councillor Zak Khan noted that most points had been discussed at the Council meeting. He also agreed with the 3 UA model, but his main concerns centred around the consultations and evidence base and a sense that the matter was being rushed through without clarity about what the people of Hyndburn wanted. Information available at the Resources Overview and Scrutiny Committee had only showed the postcodes of consultation respondents. He asked whether more detailed information on views from particular areas was known, whether young people’s views a had been taken into account and whether the 3UA preferred option discussed some 12 months ago had always been the end goal. He also queried the Government’s purpose in asking councils for their views on the local elections, if this was a matter solely for the Government to determine. He expressed a view that councillors serving, even for a short period of time, could still achieve much during their tenure.

Councillor Dad responded that, councillors whose term of office was due to expire in 2026 had been consulted about the elections issue. There were precedents elsewhere for the postponement of local elections due to reorganisation, such as for Surrey County Council in 2025 and in Cumbria (for Cumbria County Council, Carlisle City Council and South Lakeland District Council) in 2021. The decision was for the Government to take. Hyndburn was submitting its comments on this matter and believed that postponement was the right decision. On the question of the 3UA model, this had initially been considered to be the best option and the public and Opposition members had been engaged in subsequent discussions. In addition, the Resources Overview and Scrutiny Committee and Council had been consulted. The Government would carry out its own consultations on their preferred option later in the process. To date, there was no detailed breakdown available of consultation responses by area. However, it was known that some authorities, including Burnley, Pendle and Fylde had undertaken their own additional local consultations.

Approval of the report was not deemed a key decision.

Reasons for Decision

The Minister of State for Local Government and English Devolution had introduced the English Devolution and Community Empowerment Bill on 10^th July 2025, following the publication of the English Devolution White Paper on 16^th December 2024.

The new Bill announced how the Government would facilitate a programme of local government reorganisation (LGR) for two-tier areas and for those unitary councils where there was evidence of failure or where their size or boundaries might be hindering their ability to deliver sustainable and high-quality services for their residents.

The Government had set a timeline for Lancashire councils to produce a preferred option for local government reorganisation by the end of November (28^th), asking for proposals to move from the current two-tier system of a county council, two smaller unitary councils and 12 districts councils, to a simpler model of fewer councils.

The Government’s aim with LGR was to improve efficiency savings, service delivery, provide stronger local leadership, economic growth, community identity and foster effective local partnerships, while not hindering the ability to deliver sustainable and high-quality services for residents.

Government Guidance

Government guidance (the Statutory Invitation) set out the following criteria which would be used to assess proposals for reorganisation:

A proposal should seek to achieve for the whole of the area concerned the establishment of a single tier of local government;
Unitary local government must be the right size to achieve efficiencies, improve capacity and withstand financial pressures;
Unitary structures must prioritise the delivery of high quality and sustainable public services to citizens;
Proposals should show how councils in the area have sought to work together in coming to a view that meets local needs and is informed by local views;
New unitary structures must support devolution arrangements;
New unitary structures should enable stronger community engagement and deliver genuine opportunity for neighbourhood empowerment.

The criteria above were not weighted, but the intention was to provide guidance to areas to develop proposals that addressed the criteria and were supported by data and evidence. Decisions on the most appropriate option for each area would have regard to the guidance and the available evidence.

Under the Local Government and Public Involvement in Health Act 2007, the Council would have to submit a proposal based on whole Local Authority Districts, but could request that the Secretary of State used his modification power in sections 7 and 11 of the 2007 Act to adjust the boundary subsequently. In the guidance, the Secretary of State had also expressly allowed for the submission of proposals that suggested boundary changes.

Proposals

Councils in Lancashire had worked together to identify possible options for reorganisation. The Government had provided funding to develop a shared evidence base across Lancashire councils, including both socio-economic baseline data for the options, a public and stakeholder engagement process and finance data.

It was intended that a joint letter would be sent to the Minister by Lancashire Leaders to accompany the various business cases that were being submitted.

The various cases would be taken to councils throughout Lancashire ahead of the deadline for submission of proposals on 28^th November 2025.

Currently there were five proposals based on the following models:

Model 1 consisted of Lancashire being split into 2 large unitary councils with a North / South divide
Model 2 consisted of 3 unitary councils (Coastal / Central / Pennine)
Model 3 consisted of 4 unitary councils (North / South / East / West)
Model 4 consisted of 5 smaller unitary councils (North / South / Middle / East / West)
Model 5 was the Blackpool proposed four unitary model

The report included colour-coded maps of the five models referred to above and an explanation of the make-up of each of the unitary authorities proposed and population sizes for each model. The 3UA model preferred by Blackburn with Darwen, Fylde, Hyndburn, Rossendale and Wyre would see new authorities based upon the following district council footprints;

Coastal Lancashire (Blackpool, Fylde, Lancaster and Wyre)
Central Lancashire (Chorley, Preston, South Ribble and West Lancashire)
Pennine Lancashire (Blackburn with Darwen, Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale)

Timeline

Delivering LGR in Lancashire would be a complex and far-reaching programme of change. The proposed timeline was intended to allow sufficient time to plan, implement and embed the new arrangements while maintaining service continuity and public confidence.

The indicative timeline below set out the key phases and milestones for implementation. It was designed to ensure a smooth transition from the decision to proceed with reorganisation through to the establishment of fully operational new councils.

The decision on the preferred option had been discussed at Resources Overview and Scrutiny Committee on 11^th November and Council on the 13^th November 2025, with the final decision being considered at today’s Cabinet meeting.

The timeline for Local Government Reorganisation was currently as follows:

· 28^th November 2025: Councils to submit proposals to Government;

· Early 2026: Government-led public consultation on proposals for new unitary councils;

· Summer 2026: Government would select the preferred unitary council option;

· May 2027: Elections would take place for a Shadow Authority for each of the new unitary councils;

· 1^st April 2028: “Vesting Day”, when new unitary councils would start to operate all services and the existing 15 authorities would be abolished.

The report included a pictorial representation of the above timeline in the style of a Gantt chart.

Findings and Recommendations

On 16^th January 2025, following the publication of the English Devolution White Paper the Council had recommended supporting the creation of a Pennine Lancashire Unitary Authority (which included Blackburn with Darwen, Burnley, Hyndburn, Pendle, Ribble Valley & Rossendale).

Currently, the Council’s preferred option was the three-unitary model for Lancashire. The business case prepared in respect of the options suggested that this was the only configuration that met all six of the Government’s criteria for local government reorganisation, while reflecting the way Lancashire’s economy, services and communities already worked and providing the best platform for the future.

The three-model business case had been developed following a detailed options appraisal, including data analysis and assessments of the evidence base.

It was considered that other options all would fall short of what Lancashire needed. A two-council model would be too large and remote, misaligned with key service boundaries and financial risk. A four-or five council model would fragment economic corridors, create uneven capacity and weaken the devolution case.

The business case concluded that only the three-council model aligned with real economics and service footprints, balanced risk, kept decision-making local and met every Government test without compromise.

The benefit of the three-model business case was making services clearer without creating councils that were too large and remote or too small to make a difference. Matching NHS and Police footprints, which none of the other options did, meant a much greater ability to work collaboratively with strategic leadership.

The business case indicated that the three unitary model delivered a sustainable future for Lancashire through a stronger, more balanced financial case than any of the other proposed options, combining credible savings with the capacity to invest in services, work with partners, support economic growth, unlock deeper devolution, and connect at a local level to places people live, work and learn in.

A table was provided within the report summarising the different options by government criteria. As stated previously, the findings indicated that the three unitary model was the only configuration that met all six of the Government’s criteria for local government reorganisation.

The report also set out an infographic, which showed the vision behind the case for three unitary authorities for Lancashire, which included the following statement:

“Our vision is for three new unitary councils, balanced in scale and rooted in real places, to create the capacity and clarity needed to unlock Lancashire’s potential. They will deliver stronger services for geographies that reflect places, communities and key partner footprints, give businesses and government credible partners for growth and devolution, and reconnect decision-making to the places people live, work and learn in.”

Consultations

Communities and stakeholders across the county had been invited to have their say on local government reorganisation in Lancashire. Two surveys had been conducted across September 2025 to understand which council services Lancashire residents saw as most important, priorities for local government to focus on in the future and initial thoughts on moving to larger unitary councils.

The community survey had been promoted across the county to ensure a broad range of voices contributed to the discussion. 13,414 respondents had filled out the survey, including 67,784 individual written comments in answer to the open text questions, showing a genuine interest and high level of engagement from Lancashire.

A total of 409 responses had been received for the stakeholder survey, representing over 200 unique organisations and individuals. Respondents had included parish and town councils, businesses, voluntary and community groups and public sector organisations.

Two reports had been produced, summarising the results of the surveys which had been undertaken by Cratus Group, an independent agency on behalf of Lancashire’s local authorities. This information would now be used to inform the developing proposals for submission to government in November 2025.

What people had highlighted across the engagement was that services that mattered most to local people were those that touched daily life and wellbeing, such as good health and care services, reliable and accessible transport, affordable housing and good schools and opportunities for children. Community identity and connection remained strong. Clarity and simplicity were recurring themes in written feedback. Residents and businesses wanted less duplication, clearer responsibility for services that were more consistent and reliable, and a stronger link between local decisions and visible outcomes. Partnership working and fairness had also been emphasised, with many respondents highlighting the importance of tackling inequalities across Lancashire and ensuring all areas had equal access to good quality local job opportunities, services and investment.

Alternative Options considered and Reasons for Rejection

Models 1, 3, 4 and 5 had been considered but were not recommended for the reasons set out in section 4.8 of the report and in the 3UA business case, which had been circulated separately to members.

Note: With the agreement of the meeting, the Chair invited the Cabinet to vote on the recommendations at Paragraphs 2.1 and 2.2 separately. Both Motions were CARRIED.

Resolved - That Cabinet:

(1) Approves the preferred option to establish a three-unitary authority structure in Lancashire (3UA), and the submission of the preferred option to Government by 28^th November 2025.

(2) Agrees to write to the Secretary of State asking to postpone the local elections due to be held in May 2026 for the following reasons:

i) Members being elected for short terms;

ii) Additional expense and costs to the taxpayer;

iii) Risk of disruption and additional pressure to the council; and

iv) Impact on transition to the new shadow authority;

Supporting documents: