Labour has unveiled plans for a major restructuring of local government in England, aiming to simplify the system by replacing the current two-tier structure of district and county councils with unitary authorities. The proposals, set to be outlined in a government paper, include empowering elected metro mayors with enhanced authority over planning to accelerate housing and infrastructure projects. Labour argues the changes will improve efficiency, reduce costs, and unlock greater investment for local communities.
The redesign would see dozens of district councils abolished, merging their responsibilities into larger councils under the leadership of metro mayors. This move is part of Labour’s broader ambition to extend devolution deals across the country, ensuring more regions benefit from enhanced local powers by 2030. Deputy Prime Minister Angela Rayner is expected to champion the initiative as a pathway to economic growth and improved living standards, positioning devolution as a default approach for governance.
Critics, including the District Councils’ Network, warn that creating "mega-councils" could centralise decision-making, undermining local representation. They also raise concerns about the potential for disruption, arguing it may distract councils from delivering vital services like housing and healthcare. However, supporters, such as the County Councils Network, argue that reorganisation is essential for financial sustainability and to unlock increased funding from central government.
Labour has already secured several new devolution deals, primarily in northern and rural areas, but the appetite for reform remains weaker in the south-west and East Anglia. The proposals mark a significant shift in the governance landscape, with a focus on fostering collaboration and efficiency in planning transport, housing, and infrastructure projects nationwide.
