Government “minded” to proceed with local government reorganisation in five county areas

The Government has confirmed it is “minded to” move forward with local government reorganisation (LGR) proposals in five county areas, marking an important step in its programme to replace two-tier local government structures with new unitary authorities.

In a ministerial update published on 29 October, ministers concluded that the overall LGR policy and its decision-making criteria are robust and indicated that they are “minded” to proceed with previously announced proposals for East Sussex, Gloucestershire, Oxfordshire, Warwickshire and Worcestershire. Local authorities in those areas will now be given a period of at least three weeks to make representations before final decisions are confirmed, which the Government expects to take place late in 2026 or early in 2027.

For licensing authorities and the licensed trade, the announcement provides greater clarity on the future shape of local government in several areas, while confirming that wider uncertainty remains for many councils still awaiting decisions.

Among the proposals, Gloucestershire is set to move to a single county-wide unitary authority covering Cheltenham, Cotswold, Forest of Dean, Gloucester, Stroud and Tewkesbury. The Government is also minded to proceed with reorganisation proposals creating new unitary structures in East Sussex, Oxfordshire, Warwickshire and Worcestershire.

The Government has also withdrawn previous decisions relating to the remaining 15 county areas under review. Ministers say they intend to issue further “minded to” decisions across those areas by early 2027, with another statement expected before the end of 2026 covering some of those authorities. All affected councils will have an opportunity to make representations before final decisions are made.

Importantly, ministers confirmed that the implementation timetable will remain the same across all 20 areas currently included in the programme, with shadow elections scheduled for May 2028 and the new authorities formally taking over responsibilities on 1 April 2029. District and unitary council elections due in May 2027 will proceed as planned, and there will be no shadow authority elections in 2027.

The Government has also confirmed the release of implementation funding for most affected areas. Most new unitary councils will receive an initial allocation of £450,000, representing half of the previously announced £900,000 implementation funding package, with the remainder expected following final decisions.

For licensing services, the move towards larger unitary councils raises important questions about governance arrangements, service integration, licensing policy harmonisation, enforcement structures and workforce planning. Authorities will need to consider how licensing functions are brought together as part of wider organisational transition programmes, while ensuring continuity of service for businesses, residents and communities.

The Institute of Licensing continues to support practitioners navigating these changes through its dedicated Local Government Reorganisation and Devolution Hub, which provides updates, resources and sector-specific guidance on one of the most significant local government reforms in recent years.

The topic will also be explored in depth at the Institute of Licensing’s National Training Conference 2026, where a panel session titled Local Government Re-Organisation and Devolution – Impact on Licensing. The discussion is expected to examine the practical implications of structural change for licensing authorities, governance arrangements and service delivery across England.