Local Government Reorganisation

(Urgent Question): To ask the Secretary of State for Housing, Communities and Local Government if he will make a statement on local government reorganisation.

Where is he?

I thank the right hon. Gentleman for tabling the urgent question and you, Mr Speaker, for the—[Interruption.] I am always happy to be at the Dispatch Box; I do not know what the right hon. Gentleman is talking about. I would like to thank you, Mr Speaker, for the opportunity to set out the latest steps in local government reorganisation.

For too long, many areas have been served by complex two-tier structures that divide responsibilities, slow down decisions, duplicate costs and blur accountability. The Government’s aim on local government reorganisation is simple: clearer structures, stronger councils, quicker decisions, more homes and better services for local people. We are getting on with delivering that aim.

Yesterday the Secretary of State announced the next steps on local government reorganisation in six areas of England. He has decided, subject to parliamentary approval, to implement proposals for 15 new councils in Essex, Southend-on-Sea and Thurrock; Hampshire, Southampton and Portsmouth; Norfolk; and Suffolk. In addition to the Isle of Wight, that will see 16 councils operating across these areas in place of the current 44. The proposals are supported by two thirds of councils within these areas and many local communities. They will help to expand key towns and cities, deliver housing and growth, and simplify public services for residents. We will bring forward the secondary legislation to implement the proposals for the new local councils in due course.

On East Sussex and Brighton and Hove, and West Sussex, we have carefully considered the four proposals submitted alongside the views expressed during the consultation, but no final decision has been taken at this stage, reflecting the need to address a number of important matters. Proposed modifications will form the basis of a further technical consultation to be carried out after the May local elections, which will allow councils and partners to provide focused views before any final decisions are taken. Taking the time to get this right now provides the strongest foundations for delivery, supporting improvements to people’s lives in the places where they live and enabling councils to operate effectively from day one.

People will ask whether this is an act of gross gerrymandering and political opportunism or an act of gross incompetence and stupidity, but I can inform the House that it is both. There is no mandate for this; there was nothing in Labour’s manifesto. It is an imposition from Whitehall. If the Government were so proud of this work, why did they try to sneak it out in a written ministerial statement and have to be dragged to the Dispatch Box to justify their decisions?

Unlike the hon. Lady, I have spoken to local government leaders in the areas affected. They were presented with a plan and told to comply—the outcome was predetermined. This is a stitch-up. Labour is redrawing boundaries from the centre and overriding local identity and local consent to maximise party political advantage.

The Government have announced £63 million for this transformation, yet it turns out that that is the same £63 million that they have already committed to deal with the consequence of their botched attempt to cancel local elections. How can they now claim that that money will fund wholesale reorganisation?

The Government are telling well-run councils to subsidise poorly run councils. Money that should be filling potholes will actually be filling black holes; resources that should be for collecting waste and supporting vulnerable residents will instead be diverted into restructuring and bureaucracy. Estimates point to a borrowing requirement because of these changes running into the hundreds of millions of pounds, potentially approaching £1 billion, all to fund their vanity project, and the cost will fall on local people.

I have some questions for the Minister. How can she claim that this reorganisation is locally led when it is being imposed on communities? Why are Ministers determining the boundaries rather than the independent boundary commission? What estimates will be made of the total borrowing requirement? How much money has been set aside for the inevitable judicial reviews that will flood out after this announcement?

Nobody could accuse the right hon. Gentleman of not saying what he really thinks about the proposals; I am glad that he had the opportunity to do that. He asked about proposals being locally led. Of course, all the proposals have been put forward by the areas they affect. Residents and others had their chance to feed into the consultation, and we weighed those consultation responses alongside other factors that he will be aware of. He mentioned some of them, including finances.

The right hon. Gentleman asked about the Boundary Commission. Officials have engaged with it extensively. I have met it to talk through the process, and I am confident that it can do the work needed to make the process a success. Finally, on finances, I have spent the past six months or so listening, day after day, to councils that have deficits caused by a failure in the special educational needs and disabilities system, a failure in children’s care and a failure in adult social care, presided over by a Government of which he was an active part, so if I was him, I would be cautious about lecturing other people about council borrowing.

Just to let people know, normally Front Benchers would not speak during an urgent question, but for those whose constituency is affected by this issue, and who have direct involvement, there is a dispensation today.

I welcome the Government’s move to reorganisation, which will benefit cities such as Exeter. Yesterday, the Minister may have seen official communications from Devon county council that said that reorganisation will

“put the lives of vulnerable people at risk”.

Notwithstanding the fact that, according to Ofsted, children’s services and SEND services in Devon have been failing for many years, does the Minister agree that such comments are irresponsible and not true? Should reorganisation happen in Devon—I hope that it will—will it not be up to authorities to ensure that services are safely and effectively moved to new structures?

I agree wholeheartedly with my hon. Friend. I have been working closely with the Under-Secretary of State for Education, my hon. Friend the Member for Whitehaven and Workington (Josh MacAlister), and other Ministers in the Department for Education to improve our children’s services. We will ensure that we do that through this reorganisation process. Nothing matters more than the fortunes of our kids, and it is up to us in central Government and local government to work together to deliver good childhoods for all of them.

I call the Liberal Democrat spokesperson.

It is deeply disappointing that this matter is being addressed today through an urgent question, and was not addressed yesterday through a proper statement from the Government. As I have said, the Liberal Democrats support devolution and reorganisation where that strengthens communities, but changes must be locally led, properly consulted on, adequately funded and never top-down.

In recent months, I have spoken to local government leaders across the country, and their really clear and consistent message is, “First, trust us. Secondly, work with us to fix the broken local government funding system,” which is leaving councils struggling to meet rising costs and needs. While the decisions announced for Essex, Hampshire, Norfolk and Suffolk provide clarity—even if areas remain concerned about viability and sustainability—they fail to address those fundamental issues. In the case of Sussex, the Government have essentially dismissed the local proposals, and have instead chosen to consult on their own plans, leaving the county in another period of uncertainty. Does the Minister recognise that that approach undermines trust between national and local government? Has her Department fully assessed the financial consequences of the proposals for reorganisation in those areas and across the country? Will she commit to a cross-party piece of work, carried out with local leaders, on creating a fair, adequate and long-term funding settlement for councils?

I thank the hon. Lady for those points. On the announcement process, we followed the precedent set by the previous round of reorganisation in 2021, under the previous Government. In relation to Sussex, it is really important that we get this right. We had concerns about the proposals not sufficiently addressing the criteria, particularly on economic growth, service disaggregation, community identity and financial sustainability. We will work quickly with Sussex, so that we can enter into that period of intense discussion and consultation after the local elections. That will not affect the overall timings of the programme, with new unitaries going live in 2028.

The hon. Lady also mentioned working with local government on its overall finances. Having just dealt with the fair funding review, I can honestly say that in the months since I was appointed, I have spent most of my life talking in detail, along with Members from across the House, about financial sustainability for councils. I have no doubt that she and I will engage on the subject many times in the future.

I genuinely welcome the fact that my hon. Friend stresses the need for locally led decision making. She will know that there is widespread support across the Thames valley for a foundation strategic authority for Berkshire, Oxfordshire and Swindon, and that a bid along those lines is with her ministerial colleagues at the moment. She will also know that there is genuine concern about a different proposal, wholly unacceptable to local leaders, that is being mooted. Will she reassure me and colleagues across the House that when it comes to FSAs, MSAs, SDSs or any initialism that she chooses, there will always be priority given to locally led decision making?

I thank my hon. Friend for making his way through the alphabet soup of devolution. I will make sure that the Minister for devolution hears his points. She will have read his letter and I am sure will respond to it. The next stage of our plan is to make sure that all places in this country have a plan for growth, and we will listen to what he says as we move forward.

I call the Father of the House.

Lincolnshire is such a huge county geographically that there is no enthusiasm for abolishing districts. Be that as it may, the Government are determined to override local residents. There is a rumour coming out of the Labour-controlled City of Lincoln council that the Government will go with a Greater Lincoln. That would be a disaster for West Lindsey, and would leave Gainsborough out on a limb and carve us out of the county. Before the Minister makes any final decision, will she please meet me, so that I can put to her the concerns of West Lindsey district council? We could live with the central Lincolnshire idea—the whole of Lincolnshire—but not Greater Lincoln.

I am always glad to meet the Father of the House. We will just make sure that it is done within the process for taking decisions.

How does the Minister expect local authorities in Essex to be ready for elections for unitaries in a year’s time, while at the same time undertaking local government reorganisation, creating a new Greater Essex integrated care board for the NHS, dealing with unprecedented demand for social care, and implementing the Children’s Wellbeing and Schools Bill? As Essex county council has said, the breakneck speed of change across the board is simply unmanageable. Will the Minister even now rethink this proposal, and call off elections for the new unitaries next year?