Local Government Reorganisation in Leicestershire: What It Means for Businesses

Leicestershire is undergoing significant changes to its local government structure following the English Devolution White Paper published on December 16, 2024. This reorganisation will impact how public services are delivered and how businesses operate within the region.

What's Happening?

The government aims to replace the current two-tier system (county and district councils) with new unitary councils, each serving a population of at least 500,000. These unitary authorities would then form Strategic Authorities, potentially with elected mayors. The goal is to improve public services, stimulate economic growth, and streamline decision-making.

Different Positions:

• Leicestershire County Council: Proposes a single unitary authority for Leicestershire (excluding Leicester City and Rutland). They believe this will improve services, save money, and simplify the system.

• District and Borough Councils (including Charnwood) & Rutland County Council: Favor a three-council set-up. This would create a North Leicestershire and Rutland council, a South Leicestershire council, and maintain Leicester City's existing boundaries. This approach aims to retain a strong sense of local identity and community connection.

• Leicester City Council: Is expected to remain a separate unitary authority, potentially with expanded borders.

Implications for Businesses:

• Strategic Authorities' Role: The reorganisation emphasises the role of Strategic Authorities in the business ecosystem. This includes integrating Growth Hub funding into Integrated Settlements and partnering with organisations like the Office for Investment.

• Local Growth Plans: Mayoral Strategic Authorities will be required to produce Local Growth Plans, which will set long-term visions for growth and identify investment opportunities.

• Skills and Employment: Strategic Authorities will have joint ownership of Local Skills Improvement Plans, ensuring skills and employment provisions are relevant to local jobs.

• Partnership Forums: The Department for Business and Trade will establish strategic partnership forums with Mayoral Strategic Authorities to align national and local policymaking and drive local growth priorities.

• Business Support: There will be continued integration of Growth Hubs into Mayoral Strategic Authorities, with these authorities taking the lead in managing and focusing local business support.

How to Make Your Voice Heard:

• Engage with Councils: All levels of local government are expected to play a part in bringing improved structures to their area through reorganisation.

• Provide Feedback: Councils are carrying out widespread engagement to help develop proposals.

• Participate in Consultations: The government aims to carry out public consultation around proposals for local government reorganisation in early 2026.

• The local Councils have opportunities for online feedback.

Key Dates:

• Interim Plan Submission: March 21, 2025.

• Full Proposals Submission: November 28, 2025.

• Government Decision: Expected by summer 2026.

• Most New Unitary Authorities in Place: By 2028.

Stay Informed:

• Register for updates from the councils.

• Follow local news and updates from the Leicester and Leicestershire councils.

• I will try to post information here and on LinkedIn to give you the tools to monitor the issue and have your say.

By staying informed and actively participating in the consultation process, business leaders can help shape the future of local government in Leicestershire and ensure that the new structures support a thriving business environment.