Local government reorganisation

The UK Government's English Devolution White Paper also sets out plans for county and district councils throughout England to be replaced with a smaller number of new unitary authorities. Neighbouring smaller or failing unitary councils have also been invited to develop proposals for reorganisation.

Unitary councils provide the same services as both county and district councils. The Government envisages that most new unitary councils should be the right size to achieve efficiencies, be financially resilient and improve capacity. The Local Government Minister has requested that new unitary councils should aim for a population of 500,000 or more.

In Hampshire, local government services are currently provided by one county council and 11 district and borough councils.

For example, if you live in Havant, some services such as adults' and children's social care, education, highways and countryside services are the responsibility of Hampshire County Council. Others, such as planning and waste collection, are the responsibility of Havant Borough Council.

Local government reorganisation (LGR) would completely change the landscape of Hampshire’s local councils by replacing the current two-tier council system and neighbouring Unitary Councils of Southampton, Portsmouth and the Isle of Wight with a number of large new unitary (all-purpose) councils. This change aims to simplify how councils are organised and run, creating large and financially resilient unitary councils that are more efficient, effective and deliver better value for money for taxpayers.

Proposals for LGR need to be submitted to Government in September 2025.

County, district and borough councils, alongside our neighbouring Unitary Councils, will be replaced by a small number of new unitary councils. Services currently provided by the current councils will transfer to the new unitary councils. For example, if you live in Havant, the services currently provided by Hampshire County Council and Havant Borough Council will be provided by one single unitary council.

Although there are already three unitary councils in our region, Southampton, Portsmouth and Isle of Wight Councils have been asked by the Government to develop proposals to expand their geographic footprint. Council Leaders across Hampshire, Isle of Wight, Portsmouth and Southampton are currently in discussions about what local government reorganisation will look like in our region.

The Government has asked for councils to submit final proposals for LGR by September 2025. Final decisions will then be taken by Government ministers.

These proposals will be informed by wide engagement with residents, local partners and other stakeholders. Once a proposal has been submitted, it will be for the Government to decide on whether a proposal is taken forward, and to consult on the proposal.

The new unitary councils are expected to become operational from 2027 or 2028.

What the local government landscape could look like in Hampshire after reorganisation

Strategy

Before and after reorganisation.

Strategic Authority
Sets the strategy for the area

Local services

Before reorganisation:

• Hampshire County Council
• 11 District Councils

• Portsmouth City Council
• Isle of Wight Council
• Southampton City Council

• Town and Parish Councils

After reorganisation:

• Unitary authorities
  Deliver local services. Unitaries cover a wide range of responsibilities previously held by county and district councils. We don't yet know how many unitaries Hampshire will have. Government expects most new unitaries will serve a population of 500,000 or more.

• Town and Parish Councils

It is not currently known how many councils there will be in Hampshire after reorganisation.

Hampshire County Council will work closely with district and borough councils and Isle of Wight, Portsmouth and Southampton Councils in the coming months to develop proposals that meet the criteria for new unitary councils that will be set by the UK Government. Our collective responsibility is to deliver a structure of new Councils that meet the Government's criteria and ensures the best delivery of public services for our residents and communities.

The Government has asked for final proposals for new unitary councils to be submitted in September 2025.

The final decision on the shape of local government reorganisation in Hampshire lies with Government Ministers.

Once final proposals for reorganisation are submitted, the Government will decide how to proceed and launch a consultation. More information will follow.

Devolution will deliver financial benefits for our area. For example, through the potential of greater freedoms and flexibilities, investment funding and the ability to raise local taxation or precepts. The Government's devolution white paper contains a summary table of functions that will be devolved to Mayoral areas (see pages 86 to 90).

Hampshire County Council's previous budget consultations have stated that moving to a 'one-tier' system with a single unitary authority that is responsible for all council services could achieve annual savings of at least £40 million. This could be achieved by, for example:

• removing duplication
• having fewer Councillors and senior managers
• reducing back-office functions
• disposing of surplus buildings and equipment
• finding opportunities for economies of scale in purchasing goods and services

It is important to note that neither devolution nor local government reorganisation will stabilise the financial position of the local government sector without wider funding reform. This is something Hampshire County Council has consistently asked the Government for over the past five years.

Town and parish councils have not been invited by Ministers to reorganise and will therefore not be affected structurally by local government reorganisation.

In its English Devolution White Paper, the Government confirmed that it wants to strengthen the relationship between town and parish councils and the new unitary councils. Further information is awaited from Ministers on these plans.