Lancashire's two council shake-up proposal analysed
The potential option for the outcome of a government-ordered shake-up would see the most radical changes in more than 50 years.
Just two new councils should be created to serve the whole of Lancashire when the county’s 15 existing local authorities are abolished, Lancashire County Council is set to argue.
The authority has published its preferred option for the outcome of a government-ordered shake-up that will usher in – by April 2028 – the most radical changes to the council landscape in Lancashire in more than 50 years.
Under the county’s council’s vision, two new ‘unitary’ authorities – North Lancashire and South Lancashire – would be created, with the River Ribble broadly being the dividing line between the two.
North Lancashire would bind together the six areas currently covered by Preston, Blackpool, Fylde, Wyre, Lancaster and Ribble Valley councils – a total of more than 722,000 residents.
Meanwhile South Lancashire would combine the eight council areas of South Ribble, Chorley, West Lancashire, Blackburn with Darwen, Burnley, Hyndburn, Rossendale and Pendle – assuming responsibility for a population of just under 888,000 people.
The ruling Reform UK on Lancashire County Council is opposed, in principle, to so-called local government reorganisation (LGR), but the authority has nevertheless had to answer a call from ministers to draw up its preference for the changes.
County Hall claims that its proposal is the only one that will ensure “a fair deal for every community in Lancashire”.
All 15 Lancashire councils have been going through the same mapping process, with the deadline for submissions looming on 28th November.
It is expected five proposals will be put forward to create anything between two and five new councils – including two different versions of a four-council option.
However, in its 200-page proposal, the county council makes the case for a straight north-south split on the basis that it will generate greater savings – one of the government justifications for the streamlining process it has set in motion – than any of the other options on the table.
The authority’s analysis suggests the new arrangement would save £391m over current local government costs in Lancashire over the first five years of its operation. From 2032/33, it is judged that recurring annual savings of £140m would be realised.
The assessment concludes that the two-council option is the most financially resilient of any of the proposed models – while also being “the least complex and lowest risk”.
The proposal argues that creating new authorities for North and South Lancashire “minimises the inevitable service disruption” that will be caused by the “considerable complexity” of splitting up of “key demand-led services” – such adult and children’s social care, highways and education.
The two new neighbouring councils would, according to the document, “both champion Lancashire” and ensure that there is “sufficient capability and capacity to carry out significant transformation activity” over a short period of time.
The blueprint highlights that Lancashire is a “county of contrasts” – including between urban and rural, affluent and more deprived, and all with “varying levels of demand for services throughout”.
Lancashire County Council’s executive director for resources, Laurence Ainsworth, told a meeting of the authority’s community, cultural and corporate services scrutiny committee last week that there was a need to avoid concentrating either “challenges or…opportunities” within the same new council areas.
He said it was important to have “coherent” councils, so that “you have the resources to connect need with opportunity”.
The proposal document highlights that while all corners of Lancashire “share resilience and ambition, they do not yet share equally in our success”.
Thirty-two percent of neighbourhoods sit within the 20 percent most deprived nationwide – with high concentrations of deprivation in Blackpool, Blackburn with Darwen, Burnley, Hyndburn, Pendle and Preston.
According to the latest deprivation statistics, 10 of the 20 most deprived localities in England are all within Blackpool. Pendle has moved from the 36th to the 13th most relatively deprived local authority area in the 2025 Index of Multiple Deprivation analysis.
Life expectancy can vary by more than a decade between Lancashire’s healthiest and least healthy communities, leading to pockets of concentrated demand for public services.
As part of an assessment of the data underpinning the county council’s reorganisation proposal, a “balance analysis” was conducted which found that a two-council option was the most balanced model overall and across a range of individual measures – including economic indicators and demand for children’s and adult services.
All 15 councils commissioned a third party to provide them with a common dataset on which to base their individual proposals. In spite of having the same starting point, a range of suggestions have nevertheless come forward, because of the “significant element of judgement” involved in interpreting the data, Laurence Ainsworth explained.
“How you weight various factors within the data …and the political judgements that you make mean you can look at exactly the same piece of information and come up with a very different conclusion.
“There is a line of argument where you can say a large local authority, that covers a large area, will have the capacity to really direct resources to areas of need. Another argument is that if there is a really deprived area within Lancashire, we should have the smallest possible council that we can in order to wrap our services around it,” Mr. Ainsworth added.
‘IF IT WERE UP TO ME…’
Lancashire County Council leader Stephen Atkinson – who pressed the government for a legally-binding referendum on the forthcoming local authority changes, but was refused – stressed his continued opposition to the overhaul.
He said: “It is no secret that I am opposed to the wholesale reorganisation of local government in Lancashire, particularly the speed at which these changes are being proposed.
“At a time when finances across the sector are stretched incredibly thin, the cost of abolishing 15 councils and replacing them with new unitary authorities will place a significant burden on council taxpayers. With years of increasing council tax, we need a robust financial solution which avoids residents paying the price.
“However, government policy is clear. Change is considered necessary, and as a county council, we have a duty to put forward a proposal that serves the best interests of local people.
“This business case has found the proposal for two new authorities offers the most effective and sustainable solution for Lancashire.
“It also suggests this is the best option in terms of delivering high-quality services for residents, investing in our communities and building a stronger, more resilient future for everyone.”
‘WE’LL BE OVERLOOKED AND IGNORED’
Outlying areas that are not either side of the “central belt” division between the proposed new North and South Lancashire councils are at risk of being left behind and left out under the proposed new arrangements, a county councillor has warned.
Joanne Ash, who promotes the Rossendale South Division for Reform UK, told last week’s community, cultural and corporate services scrutiny committee meeting: “We’re going to be overlooked…ignored…neglected – and that’s the problem with making the new councils such big areas.
“How do we guarantee…that the outer areas…away from people’s eyes – those that are in charge – …get the services they deserve?” County Cllr Ash asked.
Laurence Ainsworth acknowledged the concern, but re-emphasised the balancing act that reorganisation required.
“If the new authorities are too small, you may well have a strong sense of identity …but you don’t necessarily then have the resources to protect…services.
“And quite soon…you will see a position whereby you are only in a position to run your statutory services such as children;s and adult social care …which are very important… but a huge proportion of the population aren’t using them day-to-day. So there’s then a sense of disconnect around what people might be paying their council council tax for, versus what they receive,” Mr. Ainsworth explained..
Meanwhile, Conservative opposition group leader and former cabinet member Aidy Riggott said he was yet to be convinced that the sweeping new council areas constituted “sensible economic areas”.
“It’s very easy to show the big east-west connection, but how much of that is actually a reflection of how communities function?” County Cllr Riggott queried.
COUNCILLOR CULL
While no suggestions have yet been made about the number of councillors each of the new North and South Lancashire authorities should have, it is expected the government will cap the total for any new council at 100.
If that maximum were agreed, it would see the number of elected local representatives serving Lancashire cut by more than two thirds, down from the approximately 650 that currently sit across Lancashire County Council, the 12 districts – Preston, South Ribble, Chorley, West Lancashire, Fylde, Wyre, Lancaster, Ribble Valley, Burnley, Hyndburn, Rossendale and Pendle – and the two standalone councils for Blackpool and Blackburn with Darwen.
The county council’s Liberal Democrat opposition group leader, John Potter, warned that democracy must remain intact on the other side of the shake-up.
“In my county council division Preston West, there are six district councillors and one county councillor. If that goes down to, say, one or two, that’s a big drop in democratic accountability,” said County Cllr Potter, who also warned that there had to be enough councillors to ensure key council functions, such as the scrutiny process, could operate.
Laurence Ainsworth agreed that such a drop “could be perceived as a democratic deficit” and said it would be vital that resources were available “to really support elected members” if they were going to represent much larger patches.
A boundary review of the wards or divisions within each of the new council areas is expected to be carried out shortly after the authorities have come into operation.
‘WE SAID ‘NO’
A county-wide survey carried out in September came back in favour of retaining Lancashire’s current council arrangements – with 63 percent of more than 13,000 respondents preferring the status quo to any mergers.
In the absence of a referendum, Lostock Hall and Bamber Bridge division representative Simon Gummer said that response meant Lancashire should be going to the government not with a list of different options for new local authorities, but a simple “no”.
“We’ve got to do what’s best for the residents of Lancashire and if…they don’t really want it, then I don’t think we should move forward,” the Reform UK politician said.
However, Laurence Ainsworth said that approach – given that reorganisation is government policy – risked cutting the county council out of a vital conversation.
“Another council’s] proposal could well be successful and then our opportunity to influence the situation …could be diminished,” he warned.
WHAT HAPPENS NEXT?
The final decisions on the proposals to be put forward by each council for the number and shape of the authorities they want to replace them will be a cabinet decision — to be taken by each one before 28th November. Several authorities will also debate their preferred option in meetings of the full council, which for the county council, will take place next Thursday (20th November).
In an attempt to avoid clashes between different areas – at least for now – over the suggested new council cartography, it is expected that all 15 Lancashire authorities will submit a joint letter to the government, with each of their options outlined within it.
Ministers will then decide which of the suggestions it wants to put to a formal public consultation early in the new year – before choosing, next summer, which proposal to actually implement.
The new authorities will come into being in shadow form in May 2027, when elections to them will be held, before the existing authorities are disbanded and replaced in April 2028.
That would mark the end of the age-old ‘two-tier’ split under which responsibility for different local services is divided between the county council and the dozen district authorities across most of Lancashire. Instead, the new councils would be ‘unitaries’ – just as those Blackpool and Blackburn with Darwen already are – responsible for delivering all local authority services in their areas.
NEW-LOOK LANCASHIRE
Lancashire County Council’s proposal for two new authorities includes a pitch summarising the benefits of each:
The case for North Lancashire
“North Lancashire is a dynamic, outward-looking economy that connects world-class innovation with inclusive, sustainable growth. Stretching from Blackpool and the Fylde Coast, through Wyre to Lancaster, Preston and the Ribble Valley, it would combine national energy infrastructure, leading universities and a thriving visitor economy with coastal, rural, and urban communities that work together as one system.
“North Lancashire would continue to build on its strengths as a leader in clean energy, advanced engineering and digital innovation. Its diverse economic base, which includes BAE Systems at Warton, Springfields Fuels and Heysham Power Stations, will anchor national capability in aerospace, nuclear and defence, supported by a growing ecosystem of supply-chain businesses and innovation assets.
“The area’s strategic location, with the M6, West Coast Mainline and Blackpool Airport, will underpin strong north–south connectivity and link local industries to national markets.
“With 33.4 percent of the working-age population qualified to degree level, North Lancashire will attract high-value employers and provide the talent pipeline for emerging industries. Continued housing delivery – averaging 3,600 homes a year – will sustain population growth and create vibrant, well-connected communities.
“North Lancashire will be at the forefront of the UK’s clean growth transition. Planned investment in offshore wind, Small Modular Reactors (SMRs) and the Silicon Sands AI Growth Zone will generate high-quality green jobs and supply-chain opportunities.
“Lancaster University and the National Nuclear Laboratory will anchor research and innovation in energy, AI and advanced materials, while Myerscough College will strengthen agri-tech excellence across rural Lancashire.
“There are significant challenges and opportunities for public services in North Lancashire, with significant pockets of deprivation and wide disparities in outcomes across the area. Targeted investment in health, housing, skills and transport will help to tackle the root causes of deprivation in Blackpool, Fleetwood and Morecambe, with a focus on preventive, integrated approaches to service design and delivery.
“This will ensure that all residents can benefit from new economic opportunities and outcomes improved across the population, from early years to end of life care. Improved east–west connectivity and enhanced public transport will link rural communities to jobs, education and services, addressing historic barriers to inclusion.”
Source: Lancashire County Council
The case for South Lancashire
“South Lancashire would be the industrial and commercial powerhouse of a future-ready Lancashire – a region where manufacturing heritage, innovation and enterprise drive inclusive growth.
“More densely urbanised than the north, it will be centred around the large towns of Blackburn, Burnley, Chorley and South Ribble, as well as the boroughs of Hyndburn, Rossendale, Pendle and West Lancashire.
“This part of the county will continue to build on its proud industrial legacy, shaped by textiles, engineering and manufacturing, while expanding into new technologies, logistics and clean growth. South Lancashire would strengthen its position as one of the UK’s foremost advanced manufacturing and engineering regions. The area’s strong industrial base will continue to underpin local prosperity and national competitiveness.
“Major employers such as Rolls-Royce (Barnoldswick), Safran (Burnley) and Emerson & Renwick (Accrington) will anchor high-value production and innovation across East Lancashire, forming a manufacturing corridor supported by leading technical colleges and R&D assets.
“South Lancashire’s proximity to Greater Manchester and the Liverpool City Region would remain a key strength, enabling businesses to benefit from cross-regional supply chains, shared labour markets, and access to ports and global trade routes.”
“South Lancashire would be at the forefront of industrial renewal and urban regeneration, transforming long-standing manufacturing towns into thriving hubs of innovation, creativity and enterprise. Major regeneration projects, including the Blackburn Town Centre Masterplan and Burnley Bridge employment zone, will reinvigorate urban centres, create high-quality jobs, and improve the quality of place for residents and businesses alike.
“The sub-region will lead the next generation of industrial innovation, linking its advanced engineering strengths with the growing digital and AI economy. The National Cyber Force (NCF) headquarters at Samlesbury and the Blackburn Cyber Skills and Education Campus will position South Lancashire asa national centre for cybersecurity, AI and data-driven industry, forming a vital part of the North-West Cyber Corridor. This fusion of manufacturing and digital innovation will drive productivity and strengthen resilience across local supply chains.
“South Lancashire would modernise and diversify its economy by embracing advanced manufacturing, clean growth and digital transformation, reducing its reliance on traditional sectors vulnerable to automation and global market shifts. Collaboration with Greater Manchester, Cheshire and Warrington, and the Liverpool City Region will unlock shared investment opportunities in logistics, skills and innovation.
“Persistent deprivation in neighbourhoods in Blackburn, Burnley and Pendle would be addressed through targeted investment in early years, skills, health, housing and regeneration to improve outcomes across the whole geography. By taking a preventative, integrated locally responsive approach to service design and delivery across South Lancashire, all communities from the west to the east can share in the opportunities and benefits of growth.
“A stronger focus on education and skills alignment would address the current mismatch between workforce qualifications and employer demand – with only 31percent of residents educated to degree level compared to 37 percent nationally. Expanding technical education, apprenticeships and lifelong learning will ensure local people can access skilled, future-focused careers.”