Local government reorganisation
The Chambers continues to be engaged in the proposed devolution from central government to a Greater Essex combined authority, led by a mayor, of certain powers and funding. Linked to the devolution process, under which an Essex mayor will be elected in the Spring of 2026, is a separate process of local government reorganisation (LGR).
Devolution is about pushing powers down to county level, to a strategic authority embracing the county council, Southend and Thurrock. LGR will bring about more fundamental change, abolishing the county council, Southend and Thurrock councils and all twelve district councils in Essex and replacing them with new unitary authorities. There will therefore be a single tier of local government in Essex rather than two tiers (although Southend and Thurrock are already single tier areas but they are small compared to the government’s guideline of 500,000 people per unitary authority and therefore will not retain their current shape).
Whilst all the fifteen local councils agree the need to reorganise, inevitably there is no agreement on exactly what that should look like. Instead, Essex councils are putting forward to government four separate proposals. It is worth looking closely at what each would involve and you can do so here.
Government will choose which proposal it prefers, we expect before Christmas, and begin a process of public consultation, with a view to a new structure being in place by 2028. An enormous amount of work will need to be done to bring about transformation - but this should ultimately deliver a cheaper, more cost-effective and higher-quality level of service delivery.
Essentially the choice will be between three, four or five new unitary authorities, although confusingly there are two four-unitary proposals. All of the proposals combine existing council areas i.e. no council area will be split between new authorities but will be absorbed wholly into one or another.
Taking Southend as an example, the possible outcomes are absorption into:
- Option 1: a South Essex unitary made up of Southend, Rochford, Castle Point, Basildon and Thurrock (proposed by the county council as part of a 3-unitary model).
- Option 2: as Option 1 but without Rochford (proposed by Rochford as part of a 4-unitary model).
- Option 3: as Option 1 but without Thurrock (proposed by Thurrock as part of a different 4-unitary model).
- Option 4: a new unitary made up of Southend, Rochford and Castle Point (proposed by Southend as part of a 5-unitary model).
At heart there is a tension, or a balance to be struck, between (i) having a smaller number of authorities e.g. three which should help achieve cost savings and consistency of service delivery and (ii) a larger number of authorities, maybe five, which could be more costly to run but would retain a closer link between people and businesses and their local council. The three unitary model seeks to address this by introducing local place-based committees.
There is a lot to think about here, well covered in the detail of the proposals. At Essex Chambers we want to see a structure that works well for business and residents and delivers appropriate levels of growth and prosperity for the whole county so we will be studying the proposals closely before coming to our own view.
Budget 2025
Ahead of the Budget on Wednesday 26 November we have an opportunity to make representations to HM Treasury. The British Chambers of Commerce (BCC) will be making a submission and anyone can do so if they wish using the portal here.
If you wish to make a submission you have until 15 October. If you prefer please submit any comments or suggestions to our Head of Policy, Iain McNab, and we will include them in our own submission.