Local Government Reorganisation (LGR) is the upcoming changes in the structure, responsibilities, and boundaries of local councils in England.

The proposal for this was set out in a government White Paper on English Devolution, published in December 2024.

The plan is for ‘two-tier’ areas such as Cambridgeshire - where there are both district (including city) councils and a county council delivering different services to the same area - to be reorganised so that all services for an area are delivered by a single council, termed a Unitary Authority.  In February 2025, the government wrote to the leaders of councils in Cambridgeshire and Peterborough inviting them to work together to develop proposals for unitary authorities.

In England, devolution is the transfer of powers and funding from national to local government. The purpose of devolution is to bring decisions closer to the local people, communities and businesses they affect.

Devolution will see the creation of new strategic or combined authorities overseen by a directly elected Mayor. This body would oversee key issues such as transport and economic development with powers devolved from the government.

In our area, the seven local councils negotiated a devolution deal in Cambridgeshire and Peterborough in 2017 with central government. The Cambridgeshire and Peterborough Combined Authority was established in 2017 and has a directly elected Mayor and certain specified powers and funding from central government.

Devolution is the transfer of powers and funding from national to local government.

Local Government Reorganisation is a process where all county and district and city councils in an area are reorganised into fewer, unitary councils.

Cambridgeshire is an area which currently has a ‘two-tier’ authority system. This means the key services are delivered by two different councils, a county council and a district or city council. These are known as the principal authorities.

Cambridgeshire County Council provide services that cover the whole county - such as education, roads maintenance, rubbish disposal, children's services and adult social care.

District councils such as Cambridge City are smaller and provide local services including household rubbish collection, benefits, local elections, sports and leisure, planning, housing, homelessness support and environmental health.

Parish and town councils – which we don’t have in the Cambridge City Council area, but they can be found in other districts in Cambridgeshire. Parish councils are the lowest tier of local government but are not principal councils. They are unlikely to be affected by local government reorganisation.

A Unitary Authority is a single tier of local government that takes on the responsibilities of both district and county councils.

This contrasts with the two-tier system, where local government responsibilities are split between county council and district or city councils in the county area.

The terms "Unitary Authority" and "Mayoral Strategic Authority" refer to different types of local government bodies in the UK and they serve distinct functions.

Unitary Authorities deliver all the local services that would usually be provided across district, city and county councils.

Mayoral Strategic Authorities (such as the Cambridgeshire and Peterborough Combined Authority) are partnerships that bring together local authorities across a larger geography to co-ordinate transport, economic development and skills. They have an elected Mayor.

That has not yet been confirmed. Council leaders across Cambridgeshire and Peterborough are meeting to discuss proposals, though there is not yet agreement on a single option.

Cambridge City Council held an Extraordinary Council meeting on Monday 17 March to discuss Local Government Reorganisation.

Council leaders across Cambridgeshire and Peterborough are meeting to discuss proposals, though consensus has not yet been reached on which option (or options) will be submitted in proposals to government.

The final decisions on which new local government structures are put into place in Cambridgeshire will ultimately be made by central government.

As outlined in our report for our Full Council meeting on Monday 17 March, the benefits of Local Government Reorganisation are intended to include:

• making local government arrangements simpler and easier to understand
• making it clearer for residents who is responsible for services they receive
• creating opportunities to improve services for local communities by bringing together and joining up services ‘under one roof’
• increased accountability for residents with Councillors being able to make decisions about all council services in the area
• providing a stronger voice for the local area to raise issues that are of most concern to residents

The government has also been very clear that financial savings are expected through the process of reducing the number of councils. The changes should also make sure that the new councils are financially viable despite rising costs and other pressures.

Overall, the Government White Paper on Devolution says, “If we are going to build an economy that works for everyone, we need nothing less than a completely new way of governing – a generational project of determined devolution.”

Reorganisation presents both opportunities and challenges for Cambridge City Council and our residents and businesses.

Benefits include the potential for integrated and improved services ‘under one roof’, clearer accountability for residents, and financial savings from fewer local authorities. 

However, there are also risks, including potential loss of local representation due to the increase in size of any new Unitary Authority compared to the current City Council, impacts on retention and recruitment of council staff during a transition implementation costs. 

The government asked for an initial response from all councils in England by 21 March 2025 and a final business plan by November 2025.

Council leaders across Cambridgeshire and Peterborough are meeting to discuss what those proposals could be, though there is not yet agreement on a single option. The government’s process does also allow for councils to submit their own proposals, but we are working with the other councils in the area.

We held an Extraordinary Council meeting on Monday 17 March to discuss Local Government Reorganisation – and the Council’s initial response.

Some areas have chosen to fast track their work towards becoming a Unitary Authority, with the aim of having everything in place by May 2027.  

Cambridgeshire is not one of these areas and is working towards having a new Unitary Authority in place by May 2028.

Cambridge City Council previously engaged residents about the Future of Local Government for Cambridge in summer 2024. We published a summary of the engagement findings report in November 2024, which also included recommendations for next steps. These were unanimously endorsed at a council meeting on 28 November 2024.

The key findings from the engagement were:

• almost half of over 500 respondents agreed or strongly agreed that current ‘two-tier’ arrangements could be improved
• nearly 71% agreed or strongly agreed that a unitary authority would serve their and the city’s interests more effectively
• nearly 83% agreed that options for a unitary council for the Cambridge area should be explored

We will engage with residents and partners in shaping the business plan that we need to submit to government by November 2025.

Residents can also engage with their local councillors about any topic – such as Local Government Reorganisation.

Yes. The government has been clear that ‘two-tier’ areas like Cambridgeshire will see city, district and county councils replaced by unitary authorities.

No. All councils in Cambridgeshire will be abolished.

Whatever new Unitary Authority, or Authorities, are created in Cambridgeshire, they will be governed through the new elected members of that council/s.

There is always a possibility that Council Tax could change – it is a key source of funding for council services. Cambridge City Council has set its budget for the 2025/26 financial year.

It is too early to indicate what might happen with regards to Council Tax levels in future years, and for when any new Unitary Authority is in place.

Yes. In 2023, new Unitary Authorities were established in North Yorkshire, Somerset, and Cumbria. Other reorganisations have occurred in Dorset (2019) and Northamptonshire (2021).

Now the government expects all council areas across England where there is currently a two-tier system in-place to be reorganised.