Local government reorganisation plan halt adds to confusion for business – Chamber

The decision to halt local government reorganisation in the UK, including Staffordshire, will add to the confusion for businesses and residents, according to business leaders in the area.

Local Government Secretary Angela Rayner announced the halt yesterday following legal advice which suggested the plans might not comply with the law.

Alongside Staffordshire, local government reorganisation has been paused in 13 areas while a review is carried out.

Proposals to merge smaller councils to form larger authorities in Essex, Hampshire, Norfolk and Suffolk have also been withdrawn.

Reorganisation in Surrey, where councillors for two new unitary authorities were elected in May, will not be affected by the review.

The government also confirmed local elections in May 2027 would go ahead on existing council boundaries.

Ruth Fleet (pictured), senior policy adviser at the Greater Birmingham Chambers of Commerce, said: “It is important that the Government gets Local Government Reorganisation (LGR) right, and so the decision to reassess proposals that have proved controversial is entirely reasonable.

“However, this is not the case in Staffordshire, where there has been no formal challenge to the LGR decision set out in July.

“Pausing all LGR plans across the country, including in Staffordshire, just weeks after making a decision can only add to the confusion for businesses and local residents.

“For many businesses these changes may feel procedural, with existing services essentially transferring from one body to another, but LGR is also designed to lay the groundwork for more effective devolution of power.

“The Government needs to act quickly to finalise this decision-making process so that local authorities can work to make this reorganisation as smooth as possible.”