The Government has confirmed the next phase of local government reorganisation, setting out detailed proposals for the remaining areas still operating under two‑tier arrangements. The announcement, published on 16 July 2026, confirms that 14 further areas will move towards streamlined unitary structures designed to reduce duplication, simplify governance and strengthen the foundations for deeper devolution.
The reforms expand the national LGR programme, which will ultimately consolidate 134 councils into 38 unitary authorities. Ministers say the changes will improve accountability, deliver clearer and more efficient services, and enable savings to be reinvested into local priorities such as social care, highways and housing.
LIST OF AREAS AND THE DECISIONS TAKEN
- Gloucestershire: 7 councils being reorganised into 1 unitary. This will unite the Gloucester-Cheltenham growth corridor and Golden Valley cyber cluster under one council, with reorganisation expected to deliver savings by reducing duplication across services and leadership.
- Derby and Derbyshire: 10 councils being reorganised into 2 unitaries. This will let Derby expand in all directions while reflecting the county’s distinct north/south geographies and creating two strong partners in the East Midlands Combined County Authority.
- Warwickshire: 6 councils being reorganised into 2 unitaries. This will allow each new council to focus on the specific needs of its communities, tackling health inequalities in the north and improving access to services for older and rural residents in the south.
- Worcestershire: 7 councils being reorganised into 2 unitaries. This will reflect the county’s different economies and identities in the north and south, balancing scale with staying connected to communities.
- Oxfordshire: 6 councils being reorganised into 3 unitaries. This will address Oxford’s housing constraints, better reflect the city’s economic geography, and ensure Oxford has its own seat at the table when regional powers and funding are agreed with government.
- Hertfordshire: 11 councils being reorganised into 4 unitaries. This will reflect the county’s distinct economic areas, keeping public services organised around where people live, work and travel.
- Leicester, Leicestershire and Rutland: 10 councils being reorganised into 2 unitaries. This will expand Leicester’s boundary to reflect how the city actually functions, unlocking around 30,000 homes and 67 hectares of employment land, and creating a stronger platform for future devolution.
- Nottingham and Nottinghamshire: 9 councils being reorganised into 2 unitaries. This will bring most of Nottingham’s urban area under one council, supporting the Mayoral authority’s growth ambitions and creating a more balanced urban-rural mix.
- East Sussex and Brighton and Hove: 7 councils being reorganised into 2 unitaries with boundary modifications. This will expand Brighton and Hove’s planning footprint and tax base to tackle housing unaffordability and support growth across connected communities.
- Staffordshire and Stoke-on-Trent: 10 councils being reorganised into 2 unitaries. This will support Stoke’s growth opportunities across a natural north/south split, minimising service disruption and achieving strong financial sustainability.
- Lancashire, Blackburn with Darwen and Blackpool: 15 councils being reorganised into 4 unitaries. This will reflect Lancashire’s diverse urban, rural and coastal communities, aligned with existing economic areas and transport links, with a clear structure for future devolution.
- Kent and Medway: 14 councils being reorganised into 4 unitaries. This will align councils with housing markets and local need, support the whole area’s growth, and maintain locally responsive services while strengthening local voices through neighbourhood committees.
- Devon, Plymouth and Torbay: 11 councils being reorganised into 4 unitaries. This will align boundaries with economic geography to unlock housing and infrastructure growth, supporting Plymouth’s defence sector and Exeter’s expansion as key urban engines.
- Lincolnshire, North Lincolnshire and North East Lincolnshire: 10 councils being reorganised into 4 unitaries. This will give Lincoln the space to grow while striking the best balance between urban and rural service delivery and securing Lincoln a distinct voice in devolution.
Nationally, the Government says LGR will reduce bureaucracy, improve service quality through unified decision‑making, strengthen local leadership and unlock economic growth through streamlined governance. Consultations remain open in several areas, with ministers encouraging residents, businesses and organisations to contribute views on the proposed models.
IoL Chief Executive, Paul Adams, said:
“Local government reorganisation presents both challenges and opportunities for licensing services. As councils plan for new unitary arrangements, it is essential that licensing is recognised as a statutory public protection function that supports community safety, safeguarding and economic growth. The Institute of Licensing stands ready to support authorities and practitioners through the transition to ensure services remain effective, resilient and legally robust from day one.”
IoL National Chair, Kate Nicholls OBE, said:
“Local government reorganisation and devolution present both challenges and opportunities for licensing services. As councils plan for new unitary arrangements and prepare to take on greater devolved responsibilities, it is essential that licensing is recognised as a statutory public protection function that supports community safety, safeguarding and economic growth.
“The success of these reforms will depend not only on new governance structures, but on the professional, skilled and experienced officers who deliver services on the ground. Licensing practitioners provide the specialist expertise, regulatory judgement and local knowledge needed to ensure that services remain effective, legally robust and responsive to local communities throughout this period of change.
“The Institute of Licensing stands ready to support authorities and practitioners through the transition and to help ensure that licensing continues to play its vital role in protecting the public while supporting thriving local economies.”
The Institute of Licensing has updated its LGR & Devolution Hub to support licensing professionals through the transition. The hub provides national updates, guidance documents, including the IoL’s Local Government Reorganisation (LGR) Guidance, and access to the dedicated LGR Special Interest Group.
