Early proposals for a new council structure have been outlined for Leicester, Leicestershire and possibly Rutland. These could see the end of districts and boroughs in the county.
The potential expansion of Leicester’s borders into the county is also on the table. Moreover, Rutland could be brought back within the Leicestershire fold.
The proposals follow Government calls for simpler council structures in areas such as Leicestershire where there are two levels of authorities running side by side. The announcement has been met with mixed reactions from residents, MPs and local political leaders.
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But what changes could these plans bring about locally? Why are they being put forward? What is this ‘devolution’ which has been long-promised locally? And, perhaps most importantly, what will it mean for you as Leicester and Leicestershire residents? We have set out to answer these questions below.
What is the current political structure for Leicester, Leicestershire and Rutland (LLR)?
Currently, there are 10 councils across LLR. In the county, there is a two-tier set up with power shared between the county council, which has responsibilities for areas including highways, education, waste sites and planning decisions on major infrastructure projects, and the seven district and borough councils, which take on duties such as bin collections, local planning decisions, including new housing, and parks.
The political set up in Leicester and Rutland is simpler. Each area has one council, known as a unitary authority, which holds all the local political decision-making power for that area.
What are the proposed changes?
Leicestershire County Council announced on Thursday, January 9, that it would be requesting the 2025 local elections be postponed so it could look at creating a new political structure in Leicestershire. This is expected to mean the end of the district and borough councils.
Early expectations are that there would be a unitary authority set up for Leicestershire in their place. Alternative suggestions are that the county be divided between two new unitary authorities to keep the footprint of them smaller.
There is also a possibility that Rutland could be included in a new Leicestershire authority, but this has not yet been decided. Current thinking is that Leicester city would remain separate and under the control of Leicester City Council as it currently is.
However, political leaders have said they believe city borders must expand into the county for the city council to remain viable should that approach be taken. This is particularly relevant in terms of its budget position, with finances long reported to be on a “cliff’s edge”.
Expanding the boundaries would allow the council to collect council tax from residents currently outside of its borders, many of whom would be on a higher band. Again, no decisions have been made yet on which areas would be incorporated in the new city make-up if that option is taken.
Why are the plans being put forward?
Deputy PM Angela Rayner says the plan will save money
(Image: Dominic Lipinski/PA Wire)
These proposals are being put forward in response to the Labour Government’s plans to reorganise local authority structures across the country. The English Devolution White Paper, published in December 2024, set out the Government’s intention to merge two-tier council areas, such as Leicestershire, into a single organisation, preferably with an elected mayor to lead them.
Deputy prime minister Angela Rayner said at the time this would “streamline” processes and save money. The Government added it would “expect all two-tier areas” to develop proposals for their mergers, saying it would deliver the reorganisation “as quickly as possible”. Where needed, the Government said, it would use “legislation” to ensure progress was made.
What is ‘devolution’?
The Government’s plans also set out its intention to hand more decision-making power to local areas in a move known as devolution. Those devolved powers could also be accompanied by additional cash. However, to unlock this, councils would have to comply with the Government’s White Paper proposals.
This is not the first time devolution has been spoken about for Leicestershire, however. Similar plans were drawn up by the previous Conservative Government, with some local areas invited to negotiate what was then called a “County Deal” with Westminster.
In February 2022, Leicestershire was among the first local authority areas to have been offered the opportunity to strike such a deal by the last Government. This would have given greater decision-making power placed in the hands of local leader, and if a deal had been struck, it was expected to be backed by around £1 billion in additional funding for the area.
Sir Peter Soulsby rejected previously proposals for a devolved Leicestershire
(Image: Darren Staples/Getty Images)
However, negotiations hit a snag when it came to light that the highest level of funding could only be unlocked if Leicestershire county joined with the city and Rutland as a combined authority – and if the three areas accepted one mayor be elected for all of them. The combined authority would have been expected to be an umbrella authority over the top of the existing structure in a similar set up to the East Midlands Combined Authority made up of Nottingham, Nottinghamshire, Derby and Derbyshire.
City mayor Sir Peter Soulsby faced backlash from some in the county after he refused to agree to this. He also at the time branded the £1 billion figure expected to be received through a local deal as “pure illusion”, saying the Government “hasn’t promised a single penny”, and questioned the value of having another tier of local Government created.
When could the changes happen?
No concrete timeline has yet been given publicly for when a new political structure could be set up locally. The proposals would need to first be put to the Government, and then approved by ministers.
Local councils have until May to set out their plans, however. The Government has also said that it wants all two-tier authorities to be merged by the end of this parliament.
What could the changes mean for you?
With plans in the early stages, it is difficult to say precisely what the local impact could be. However, Sir Peter said anyone who finds themselves as new Leicester residents from the boundary changes would be “part of the city in every sense”.
They would have Leicester City Council providing their services and would be able to vote on who they want representing them on the authority. Their council tax payments would also go to the city.
Leicester’s borders could expand into the county as part of the plan
Some have raised concerns that the new city boundaries will mean higher taxes for those who fall within the new border. Fears over house prices falling and insurance costs rising have also be expressed. There are further worries that the new borders would lead to green spaces at the edges of the city being built on as Leicester City Council attempts to meet its housing targets and beat a local housing crisis.
However, Sir Peter said he believes any new city resident would not see a noticeable difference. He told LeicestershireLive: “Most people who live either side of the boundary will tell you that the levels of service that they get are broadly comparable.
“In a number of parts of the city, I think even the people who live there, have difficulty telling you where those boundaries are and it’s certainly not any difference in services that mark them.”
Those out in the county have also responded to the proposals, with some fearing the creation of one large unitary authority would result in local politics becoming too remote for some local people. Others believe the plans make sense as it would “unify” decision making and result in a more “efficient” council system.