Councillors set to consider proposals for local government reorganisation
Councillors will be asked to consider a landmark proposal to create two new unitary authorities for Lancashire at a meeting of the County Council next week.
Members will review a comprehensive 200-page business case that outlines a preferred option to replace the current two-tier system of local government with two new single-tier authorities.
The proposal is being put forward in response to the Government’s plans to streamline local government structures across England. The plans would see Lancashire's existing borough, district, unitary and county councils dissolved.
A range of options involving a varying numbers of councils were carefully assessed during the development of the business case.
However, the report concludes that these alternatives would not offer the best value for Lancashire’s residents.
Instead, the preferred option of creating two new unitary authorities broadly divided by the River Ribble, is described as the most balanced and forward-looking solution.
The proposed new councils would be responsible for delivering all local authority services, including education, social care, highways, waste collection, planning, housing, and leisure.
The report highlights that the two new authorities would:
- Deliver significant efficiencies and improved value for money
- Strengthen financial resilience across the county
- Safeguard vital services for the most vulnerable
- Enable investment in valued local services
- Enhance community identity and ensure local voices are heard
- Provide the strategic capacity to drive economic growth and housing development
- Support more integrated and preventative public services
Cllr Stephen Atkinson, Leader of Lancashire County Council, said: “It is no secret that I am opposed to the wholesale reorganisation of local government in Lancashire, particularly the speed at which these changes are being proposed.
"At a time when finances across the sector are stretched incredibly thin, the cost of abolishing 15 councils and replacing them with new unitary authorities will place a significant burden on council tax payers. With years of increasing council tax, we need a robust financial solution which avoids residents paying the price.
"However, Government policy is clear. Change is considered necessary, and as a county council, we have a duty to put forward a proposal that serves the best interests of local people.
"This business case has found the proposal for two new authorities offers the most effective and sustainable solution for Lancashire.
"It also suggests this is the best option in terms of delivering high-quality services for residents, invest in our communities, and build a stronger, more resilient future for everyone.
"Next Thursday's full council meeting will provide an opportunity for all members to debate the business case and put forward a recommendation to the council's cabinet."
The report to councillors recommends that they request Cabinet endorse the proposal for establishing two unitary councils in Lancashire at its meeting on Thursday, November 27.
It is expected that one submission, with proposals ranging from two to five new councils, will be submitted to the Government on behalf of Lancashire's 15 councils on November 28.
The Government is expected to launch a public consultation on the proposals early next year, with a preferred option selected by summer 2026.
Elections for the new shadow authorities could take place in May 2027, with the new councils assuming full responsibility for services from 1 April 2028.
Notes to Editors:
Formal consultations have taken place with stakeholders and residents. The Lancashire LGR Communications Officers Group commissioned an independent organisation to conduct public and stakeholder engagement in September 2025. Independent analysis of these consultations is included in the business case.
The proposal reflects collective working across all 15 Lancashire councils, including shared data.
Local Government Reorganisation (LGR) is separate from the devolution process. However, the new unitary councils would become constituent members of the Lancashire Combined County Authority (LCCA), which will continue to lead strategic initiatives in transport, innovation, trade, investment, skills, and adult education.
See the agenda Council - Agenda for Full Council on Thursday, 20th November, 2025, 1.00 pm