Agenda item

The Acting Assistant Director of Corporate Services and Transformation presented the Local Government Reorganisation (LGR) update to the Board.

Earlier in the month, Government announced a pause to the LGR process, including in Worcestershire, whilst it reviewed July 2026 decisions on future unitary authority structures. The July decision has not been withdrawn, but implementation activity has been paused pending the outcome of that review.

Worcestershire remained within scope of the review and LGR and devolution continue to be part of Government policy. However, there was limited clarity on the review's full scope, timetable or eventual outcome.  As a result, Worcestershire councils have moved into a preparation and readiness phase. Work linked to any specific future model had been halted.

There was currently no Structural Changes Order in place and no legislation to implement any new council structure. So, it remained unclear what any future proposal would involve.

In light of Government guidance, Bromsgrove had adopted a cautious approach to financial expenditure. Most implementation activity had been paused, including planned spend in some core areas.

Some limited expenditure would continue to maintain critical programme capability, including shared programme management arrangements via the Programme Director but only where it provided value irrespective of the eventual LGR outcome and represented an appropriate use of public funds.

Whilst most implementation activity had paused, disaggregation data and analysis activities would continue within the County Council and readiness work would continue within all councils where each council determined it was beneficial and represented value for money.

Decisions on any shared activity funded through the LGR Implementation Reserve fund would continue to be taken through the agreed countywide governance arrangements.

The current expectation was that any May 2027 local elections would proceed on existing council boundaries, however, longer-term governance arrangements would remain subject to future Government decisions and any associated legislation.

The approach being taken by the LGR Implementation Board was that the Board would be asked to adopt the following principle at their next meeting “Would any work still be useful under any future LGR outcome, or if LGR did not proceed?”  If yes, it should continue; if aligned to a specific LGR model, it is paused.

Examples of work that could continue during the pause, if approved

were as follows:

• Workforce data, structures, contracts and HR records.
• Asset information, registers, compliance and property records.
• Contract inventories, financial analysis and readiness planning.
• Data quality, systems mapping, governance and technology risk.
• Service improvement, productivity, resilience and organisational effectiveness.

The Board was advised that further updates would be provided as the position developed.

The Leader asked whether the Council could access the £900,000 reportedly allocated per unitary authority to recoup transitional expenditure already incurred.  Officers were unable to provide an immediate answer and undertook to investigate further.

Members emphasised that continuing uncertainty created further costs and that the Council should seek to recover expenditure wherever possible. 

The Portfolio Holder also wished to place on record his thanks to the officer previously leading the work and wished her well during maternity leave.

RESOLVED that the Local Government Reform (LGR) update be noted.</AI7>

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