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 sees the creation of new strategic or combined authorities overseen by a directly elected Mayor. This body oversees 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 (see devolution and information about Cambridgeshire and Peterborough Combined Authority above).

Local Government Reorganisation is a process where all county, 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 provides services that cover the whole of their area - such as education, roads maintenance, rubbish disposal, children's services and adult social care.

District councils such as Cambridge City Council 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 – we don’t have parish or town councils in Cambridge, but they are 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.

Four options have been submitted to government by the seven Cambridgeshire councils.

This includes 'option B', which along with East Cambridgeshire and South Cambridgeshire district councils, Cambridge City Council has backed as being the best way to reorganise Cambridgeshire's seven councils into two new unitary councils. These would be:

• one for Greater Cambridge (Cambridge and South Cambridgeshire)
• one for North Cambridgeshire and Peterborough (East Cambridgeshire, Fenland, Huntingdonshire, and Peterborough).

Government is consulting on all four options. Take part in the consultation - closes Thursday 26 March. Government will then make the final decision on which option is selected. It is expected they will announce the outcome in summer 2026.

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

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 council, impacts on retention and recruitment of council staff during a transition implementation costs.

Following the government consultation in February/March 2026, the government will make the final decision on which option is selected. It is expected they will announce the outcome in the summer.

New unitary councils are due to begin operating in April 2028. In advance of them legally coming into force, the new councils will exist in a shadow capacity so officers and councillors can help prepare, plan, make transitional decisions needed for day one and provide recommendations to the new authority. This phase would begin from May 2027.

Find out more about consultations.

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 councils 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.

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

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

Benefits include the potential for improved services through more functions ‘under one roof’, clearer accountability for residents and businesses, and potential financial savings – which are explicitly expected by the government. In total £43 million is expected to be saved if Option B, our preferred option, is progressed.

However, significant risks exist, including potential loss of local representation, due to the increase in size of any new unitary authority compared to the current district council, possible council workforce instability during changes, substantial implementation costs, and setting a single Council Tax charge across an area which has previously had multiple councils all setting their own Council Tax charges.