East Midlands Chamber has cautiously welcomed the Secretary of State’s decision to proceed with the two unitary council options requested by Nottingham City Council, which would be subject to Parliamentary approval, but called for the process to bring minimal disruption to business.
A Structural Changes Order is being prepared to formalise the reorganisation and is expected to come into force in 2027. It will transfer functions, responsibilities, assets, liabilities and rights from existing councils to the new unitary authorities. Where necessary, the Order will make provision to preserve city status through Charter Trustees. The proposed timetable includes informal legal scrutiny followed by formal Parliamentary consideration.
Ministers have asked affected councils to provide additional information by 17 August to help finalise the Order and will consider any further unanimous representations. The government has also indicated it will develop further legislation to deal with related matters, including local government pensions, housing revenue accounts, ceremonial issues and updates to council membership on various public bodies.
A one-off allocation of £1.8 million will support the effective establishment of the new councils. The funding is earmarked for activity such as service disaggregation and aggregation, investment in digital infrastructure and cyber resilience, setting up programme management arrangements, and preparing to support new councillors and senior officers following elections.
The government will also issue a direction under section 24 of the Local Government and Public Involvement in Health Act to require predecessor councils to obtain consent from shadow councils before entering certain contracts or disposing of important assets, protecting the financial position of the incoming councils.
Joint committees mirroring those required by the Order are expected to meet regularly up to six months before inaugural elections to help coordinate the transfer of services and responsibilities. Ministers say they remain committed to working in partnership with local leaders to deliver new unitary councils that provide excellent public services.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “The clarity on the next steps and funding to support the transition is helpful to have. The Chamber will support businesses and communities across the region as the reorganisation process progresses, working with partners and local networks to help minimise disruption and protect local services that businesses rely on.”
