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Analysis paper

Reorganising district councils and local public services: options and challenges

How should councils approach local government reorganisation?

Oxford city centre
District councils, such as Oxford City Council, will be replaced through a new round of local government reorganisation.

This report highlights potential risks and opportunities for local government as leaders embed these new authorities and transform local public services

The government has embarked on the largest wave of local government reorganisation (LGR) in England since 46 unitary authorities were established between 1995 and 1997. It is doing this at a time the sector is not in a resilient position. After more than 15 years of financial strain, many local authorities are grappling with budgetary and staff pressures and limited strategic capacity. This will limit the ability of councils to manage the demands of delivering business-as-usual services, from planning to waste collection, alongside LGR.

This report is based on detailed research, including interviews with senior decision makers involved in earlier rounds of LGR at the district level (including nine in our three case study areas – Cumbria, North Yorkshire and Northamptonshire). It focuses on the challenges and options facing local leaders as they aggregate district council functions onto a new unitary footprint. The report makes recommendations to help local leaders and central government minimise disruption and maximise the benefits of LGR. 

A briefing summarising the report's main findings can be found below (PDF).

 Figure 1 District councils and unitary authorities undergoing local government reorganisation September 2025

Reorganising district councils and local public services

Challenges and options

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Reorganising district councils and local public services

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