Devolution and local government reorganisation

Devolution is a process that aims to transfer more power and decision-making from the highest levels of national government, down to local areas. The current government has made this a priority and wants to create a new network of strategic authorities for the whole of England by 2029. These new authorities will be led by elected mayors and encompass multiple local council areas.  

Strategic authorities will have a population of at least 1.5million people and responsibilities for things like transport and local infrastructure, skills and employment, housing and strategic planning (not deciding planning applications), economic development, health and wellbeing and public safety. 

The Government shared these plans in an English Devolution White Paper, which explains what councils must do.

As part of its plans for devolution, the Government has started a programme of local government reorganisation to replace all two-tier county and district councils and small unitary authorities with much larger unitary councils. 

These larger unitary structures would then join together in groups to form strategic authorities with an elected mayor.
December’s Devolution White Paper indicated that new unitary councils should have a population of 500,000 or more, with possible exceptions to ensure new structures make sense for an area. 

Councils have since been told that the Government will consider populations of between 350,000 and 700,000.

The Government wants to complete this process as quickly as possible and has said it will use legislation to ensure progress, if needed. This means that ‘no change’ is not an option. All councils must follow the roadmap that is mandated in December’s White Paper.

Rutland was included in three different interim plans for local government reorganisation, submitted to national government on 21 March 2025:

• a three-unitary model covering the Leicester, Leicestershire and Rutland area, which could see us form part of a new council serving North Leicestershire and Rutland
• one of several options in the Greater Lincolnshire area interim plan, which could see us join with North Kesteven, South Kesteven and South Holland
• an option being tabled by Leicester City Council, which could expand the city boundaries and include Rutland in a single Leicestershire unitary

After publishing its Devolution White Paper, national government sent a letter to the local authorities who make up Leicester, Leicestershire and Rutland, asking that we work together as an 'invitation area' to make plans that would reduce our total number of councils. 

Rutland County Council responded to this Statutory Invitation by working with Leicestershire’s district and borough councils to bring forward the North, City South interim proposal. 

Having been instructed by national government to work together, we believe the joint plan that has been prepared by Rutland County Council and Leicestershire’s district and borough councils is the best option for the Leicester, Leicestershire and Rutland shared area, rather than being placed into a single large council for Leicestershire with a population of nearly 700,000 residents.

Councils in Greater Lincolnshire, including Lincolnshire County Council and two unitary councils to the north, received a separate letter inviting reorganisation proposals for their area. Among the current interim proposals for that area is one supported by North and South Kesteven, covering North Kesteven, South Kesteven, South Holland and Rutland.

Rutland County Council is continuing to hold discussions and share data with Leicester City, North Kesteven, South Kesteven and South Holland, as they too work towards submitting full and final proposals to the Government in November. We don’t yet know when or how they might seek to engage Rutland residents on their proposals, as part of this next stage.

Regardless of which proposal is eventually chosen by the Government, Rutland will become part of a much larger unitary structure because of local government reorganisation. This does not mean the County must lose its historic name, identity and civic functions, such as having a Lord-Lieutenant. Rutland County Council has made it clear that any plan which includes Rutland must keep the County’s historic name and identity.

At this stage, it is not possible to say where new councils will be headquartered after local government reorganisation, or exactly how local services would be delivered. However, final proposals can recommend a council operating model that goes beyond the size and shape of new unitary structures and is informed by feedback gathered during this next engagement phase.

Local government reorganisation means that Council Tax rates will need to be amended in areas with new authorities. This equalisation process means that rates may go up or down, depending on where people live.

Rutland County Council is asking for people’s priorities and concerns as interim plans are refined – to help inform our discussions with all the other local councils involved. 

Residents, businesses and community groups can share feedback via a short online survey, before Sunday 20 July 2025.

Councils have until 28 November 2025 to submit full and final proposals for local government reorganisation to the Government. 

The Government has said it will carry out public consultation around proposals for local government reorganisation in early 2026, if required. 

The final decision will also be taken by the Government. This final decision is expected by summer 2026.