Government confirms creation of 16 new unitary councils in major local government overhaul
Reforms will reshape Essex, Hampshire, Norfolk and Suffolk with single-tier authorities
A total of 16 new upper-tier councils will be created across four areas under the next stage of a wholesale reorganisation of local government, it has been confirmed.
In a statement on Wednesday, Communities Secretary Steve Reed said 17 proposals had been received from the six areas invited to submit plans last year, with those approved set to establish single-tier councils to replace lower-tier districts.
Five unitary councils will be created across Essex, which is currently covered by a county council and unitary councils in Thurrock and Southend-on-Sea.
Mr Reed also confirmed the Government’s commitment to repay £200 million of Thurrock Council’s debt this year accumulated by historic borrowing and investments.
He said: “This is a significant and unprecedented commitment which reflects an assessment of value for money for national and local taxpayers, given the significant unsupported debt at the council linked to historic capital practices.”
Hampshire will also be covered by five new councils, with the Isle of Wight remaining a separate unitary authority.
The cities of Southampton and Portsmouth will be integrated into the new South West Hampshire Council and South East Hampshire Council respectively.
Both Norfolk and Suffolk will be covered by three unitary councils.
Norwich will combine with areas of south Norfolk to form a Greater Norwich Council.
In Suffolk, Ipswich will form part of Ipswich and South Norfolk Council.
Mr Reed said he had not made a decision on proposals for East Sussex, Brighton and Hove and West Sussex due to unspecified “concerns regarding all four of the proposals I received”.
He added: “I am considering modifications that could address my concerns, including an option for potential modification of the proposals for further consultation.
“I have set out further details in a letter to council leaders this morning.”
The Government will now allocate the £63 million transition funding announced in February, with at least £900,000 for each new unitary authority.
Mr Reed said this would “help establish effective services and governance arrangements, ensuring funding is provided fairly, consistently and as quickly as possible”.
The Essex area will receive £4.5 million in total, Hampshire, Portsmouth and Southampton £3.6 million, while Norfolk will be allocated £2.7 million and Suffolk £2.7 million.
Mr Reed said: “This approach reflects the differing levels of complexity involved across areas and allows for a small central reserve to be used later for targeted support if needed.
“Funding will be issued through established, flexible grant mechanisms and my officials will be in touch with councils to confirm next steps.”
He added the Government remains committed to elections taking place at the new councils in May 2027, ahead of them “going live” and delivering services in April 2028.
A total of 14 other areas are currently going through the reorganisation process.
Mr Reed said: “I would like to emphasise that the decisions taken here, and previously in Surrey, do not set any precedent.
“Decisions will be taken individually, based on the published criteria referred to above, the merits of each proposal we receive and the local context.”