Angela Rayner today halted Labour‘s shake-up of councils, plunging the Government’s controversial reorganisation of local authorities into fresh chaos.
The Ministry of Housing, Communities and Local Government (MHCLG) said it had withdrawn decisions to streamline councils across a swathe of areas as it announced a review of plans.
It follows ‘updated and privileged’ legal advice and the review will allow ministers to ‘ensure the process is robust and aligns with the new Government’s plans to rewire the state’, the department said.
At least eight councils have launched legal challenges or were considering doing so over decisions announced while Keir Starmer was prime minister.
MHCLG said decisions on the reorganisation of councils in Essex, Hampshire, Norfolk and Suffolk have been withdrawn in light of new legal advice.
Plans for 14 other areas, which were only announced in July by Ms Rayner’s predecessor Steve Reed amid accusations of Labour ‘gerrymandering’ – along with Cambridgeshire & Peterborough and West Sussex – will also be reviewed and paused while this is carried out, the department added.
Angela Rayner today halted Labour’s shake-up of local authorities
Ms Rayner said the review of existing plans was requested by the new PM Andy Burnham
MHCLG confirmed that local elections in May next year will go ahead on existing council boundaries.
Reorganisation in Surrey will not be affected by the review and the two new unitary authorities – East and West Surrey – will be created in April next year.
Labour is bidding to abolish the two-tier system of local authorities, in which areas are controlled both by county councils, and district, borough or city councils – in favour of new unitary authorities.
In July, on the last sitting day in the House of Commons before Sir Keir quit as PM, the Government announced the latest changes that would have seen 134 councils streamlined into 38 unitary authorities across 14 areas.
But the Tories said the new council boundaries were ‘clearly gerrymandered’ as they accused Labour of redrawing the electoral map in its own favour.
Ms Rayner, who returned to her role as Communities Secretary when Andy Burnham replaced Sir Keir in July, told MPs in the House of Commons on Monday that the review of existing plans had been requested by the new PM.
She said: ‘As we are now more determined than ever to devolve power closer to the people we represent, it’s only right that as a new Secretary of State I make sure that everything we do is working towards that plan to change Britain, without delay.
‘The Prime Minister told the House last week, he was “prepared to look at local government reorganisation” and he asked me as his Communities Secretary to ‘do that’.
Ms Rayner added: ‘I understand that feelings run high and people naturally have strong views but in different directions.
‘In that context, in light of legal advice, I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law.
‘And secondly, I want to fully test whether our proposals for local government reorganisation meet the priorities of the new administration and the new Prime Minister and any additional considerations.
‘With those two considerations in mind, I have decided to withdraw the decisions made in March this year for Essex, Hampshire, Norfolk and Suffolk and – where necessary – their neighbouring unitary authorities.
‘I have also decided to conduct a full review of the local government reorganisation programme, including the decisions that were announced in July of this year for a further 14 areas – and those two areas where decisions have not yet been taken – and asked that reorganisation activity be paused.’
Ms Rayner continued: ‘I do not take this lightly. I recognise the huge amount of work that has already gone into progressing reorganisation in each of these areas, and I am very grateful for it.’
She later admitted it was ‘disappointing’ she had had to deliver her statement to MPs.
David Simmonds, the Conservatives’ local government spokesman, on Monday demanded Ms Rayner offer an apology for Labour’s ‘betrayal of local democracy’.
He said: ‘I appreciate she has returned to this role after others have been stewarding it, but will she apologise to all of those councillors, all of those local government officials, all of those political candidates and activists, all of those businesses that have engaged in good faith with this Government’s process.
‘All of whom have been shamefully let down by this betrayal of local democracy.’
James Cleverly, the Tories’ former shadow communities secretary who is now running for London mayor, branded the Government’s now-paused plans as ‘gross gerrymandering and political opportunism’, as well as ‘gross incompetence and stupidity’.
‘She has only just returned… so it can’t really be her fault. So who screwed up? Who is it that has wasted the time, effort and money of people in Essex and other parts of the country?,’ the Braintree MP asked Ms Rayner.
Reform UK-led Kent County Council is set to consider a judicial review at a meeting on Tuesday after it did not receive a response from the Government to a letter setting out concerns.
The party also leads county councils in Norfolk, Suffolk and Essex, which all launched legal challenges to reorganisation.
Reform leader Nigel Farage said: ‘Reform UK not only argued that this Government’s plans for local government reorganisation were an unmitigated disaster, but we once again put our money where our mouth is.
‘Earlier this year we took on the Government and forced them to give the vote back to millions of people after Labour tried to cancel democracy.
‘Now, thanks to our judicial reviews in affected Reform-led councils, the Government has backed down on their plans yet again.
‘Only Reform had the backbone to stand up to these reckless plans. This is yet another embarrassing defeat for Labour. Only Reform backs real democracy.’
Mr Simmonds said: ‘This is yet another total humiliation for this Labour Government, who have once again been exposed breaking the law in an attempt to force their top-down programme of local government reorganisation on communities.
‘Ministers are only backing off because they have been found out in the face of relentless Conservative opposition to their gerrymandering.
‘Their behaviour shows that Burnham and Rayner’s promise to empower local communities is completely hollow: their intention was always to dictate downwards.
‘Labour should come clean and put all non-privileged documentation about this process in the public domain. The public have a right to know the truth.’
Sean Matthews, chair-elect of the County Councils Network, said: ‘Since the reorganisation programme was announced, the County Councils Network (CCN) has been clear that it would support reorganisation where it generated significant savings, protected local services, preserved local identity and provided a strong impetus for economic growth.
‘Many of our members had serious concerns and felt the decisions taken over the last six months would not deliver any of these aims – with the previous Starmer government shifting substantially from its own criteria to create new authorities covering populations of 500,000 or more.
‘Others were concerned how decisions were made, the robustness of the process and the underpinning evidence.
‘The CCN called on the new administration in government to take ownership of the programme – reviewing the decisions made and only proceeding with proposals that can deliver sustainable councils and protect services.
‘We are pleased they have taken ours, and our councils’ concerns on board by announcing a pause and review of the programme today.’
Zoe Franklin, the Liberal Democrats’ local government spokesman, said: ‘This is an embarrassing and chaotic climbdown, which has resulted in already cash-strapped councils wasting huge sums on plans the Government told them were legally watertight.
‘Many local authorities, on the front line of delivering vital services such as adult social care and SEND support, were relying on this reorganisation to survive financially.
‘Many are now left with nothing, potentially putting essential services and vulnerable people at risk.
‘This episode has caused serious democratic harm, and Angela Rayner must urgently explain what comes next for communities left in limbo.’
Unison said pausing the planned overhaul of local government leaves employees in ‘even greater limbo’.
Mike Short, the trade union’s head of local government, said: ‘There have been question marks over this process from the outset.
‘This pause prolongs the uncertainty felt by local government employees. Their jobs, futures and the services they deliver are in even greater limbo.
‘Staff should always be at the heart of a reorganisation of this scale. Stronger authorities are only made possible by a skilled, experienced and motivated workforce.
‘The review’s full impact on workers won’t become clear until the results are published, but every effort must be made in the meantime not to cause them further distress.’


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