30
Multiple complex local government reforms and reorganisation are happening simultaneously.
Recommendation
Given the range of proposed reforms as well as local government reorganisation, we pressed MHCLG on the timing and sequencing. MHCLG responded that “it is all happening at once”.84 It accepted that funding reform plans may need to be adapted depending on the outcome of the Casey Commission, which is not due to report until 2028. However, newly formed local authorities would not go live until April 2028 and so it was not planning to factor in local government reorganisation into the multi-year settlement from 2026–27.85 We asked MHCLG whether local government is in a fit state to cope with all this change.86 It told us it did not underestimate the complexity and capacity constraints on councils, but the reforms and reorganisation needed to be done to make sure local government could succeed into the future. MHCLG was optimistic about achieving the necessary reform and reorganisation, saying “we need to achieve all of it”, while recognising that it did not have a choice due to the seriousness of the current state of local government.87 78 Q 43 79 Q 54 80 Qq 4, 53, 57 81 Q 45 82 Q 43 83 Q 88 84 Q 89 85 Qq 89, 90 86 Q 110 87 Q 110 20
Government Response
A response document is linked to this report, dated 18 September 2025. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
31st Report - Local Government Financial Sustainability
18 Jun 2025
HC 647
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.2 yr
Report published
18 Jun 2025