What we know so far about local government reorganisation for Peterborough

Cambridgeshire and Peterborough are poised to undergo significant changes as part of the UK government’s Local Government Reorganisation (LGR) plans.

In February, Jim McMahon, the local government minister, wrote to all council leaders asking them to create a new “simpler, more sustainable” local government structure.

The letter asked the leaders of all seven councils in Cambridgeshire and Peterborough to submit their initial reorganisation plans by March 21, with a full submission by November 28.

The region’s council leaders, including Peterborough City Council leader Dennis Jones, issued a joint response to Mr McMahon on March 21, noting that “further work will be required” following the local elections in May to “reach a shared understanding” of how best to progress with the plans.

What is LGR and how will it affect Peterborough?

Local Government Reorganisation aims to change the structure and responsibilities of councils across the country, including Cambridgeshire and Peterborough.

This would see a move to unitary councils that provide all the services currently shared between the county and district councils.

Peterborough City Council is already a unitary council, but is still included in the LGR plans.

The authority is affected by the plans as the government wants the new unitary councils to serve a larger area of around 500,000 people, which is more than the 220,000 the city council currently serves.

There are approximately 700,000 residents across the rest of Cambridgeshire.

This means that residents in Peterborough may see a shift in how services like planning, housing and waste collection are managed once LGR has taken place.

The potential centralisation of these services may affect the city’s autonomy in its decision making.

Peterborough City Council leader Dennis Jones said: “Quite a few people wrongly assume that it won’t affect Peterborough because we are a unitary authority already, but that is not the case.”

He added: “We don’t yet have a preferred option to present to government, but further work will take place after the elections to reach a shared understanding of how best to progress our proposals.

“Although it’s natural to have reservations about change, we’re all approaching it with an open mind and with the best interests of our residents at the forefront of our minds. There will be public engagement and consultation in time.

“For residents, our intention is that they see little change. Their bins will still be emptied, care will still be provided for those who need it, and streets will still be cleaned. It may just be a council with a different name and footprint that provides those services.

“I am committed to working together with my fellow council leaders to achieve the best outcome possible for our residents and every community in Peterborough and Cambridgeshire.”

There is a risk that the size of the new unitaries means that they will be more ‘remote’ from residents than they are currently, as they will serve many more people.

Councillors may struggle to represent their residents in the way that they currently do.

The new council structure could see a single unitary authority covering the whole area, or multiple unitary authorities.

While an exact answer has not yet been decided upon, it is likely there will be fewer councils each covering a larger area compared to the existing district and city councils.

Further details on LGR plans for Peterborough and the wider county are to be finalised in the months following the local elections.

A joint statement from Cambridgeshire and Peterborough council leaders reads: “We look forward to further discussions with each other and with government, and when the time is right, with residents, Members of Parliament and our partners including the police, NHS, fire service and town and parish councils.”

Stephen Moir, in charge of Cambridgeshire County Council, anticipated that creating the new unitary councils would cost the region more than £18 million, a cost which may have to be covered by the existing authorities.

Cambridgeshire and Peterborough already have a combined authority with a mayor, which receives an annual budget devolved from government and has powers to spend money on large projects in the region.

What next?

Peterborough City council says it is “continuing to work closely and effectively” with council leaders from across Cambridgeshire, “meeting regularly to develop a shared evidence base that can inform proposals”.

Any substantive proposals for reorganisation will be brought back to full council for discussion.

The government expects that full proposals for LGR are submitted by the council leaders by November 28.

Following this, elections for new ‘shadow’ unitary councils are expected to take place in April/May 2027 with the official establishment of the new unitary councils proposed for April 2028.

Council leaders’ LGR response letter in full – sent on March 21

Dear Jim

Thank you for your letter of February 5. Cambridgeshire and Peterborough is in a unique position in relation to the Government’s proposals.

We are the only Mayoral Combined Authority area with two-tiers of local government, which also includes a unitary authority. All authorities in Cambridgeshire and Peterborough have set legal budgets for 2025/26.

Looking ahead, both upper tier authorities are at risk from the current uncertainty surrounding the future of the high needs block statutory override due to expire in April 2026, and the anticipated business rates reset and Fair Funding review will put funding in the area at further risk of reduction. Cambridgeshire and Peterborough, with its three cities (Cambridge, Peterborough and Ely), is a diverse area with a large rural population, three economic areas and a number of challenges including an ageing population, significant infrastructure gaps, high growth areas, demand for housing and extreme housing affordability challenges in some areas.

Around 25% of the population of Cambridgeshire and Peterborough live in areas that are below the national median for indices of multiple deprivation, with areas across Fenland and Peterborough that are within the 10% most deprived areas nationally. Cambridge and Peterborough are two of the fastest growing cities in England, and the government has given Cambridge a prominent role in its national plans for sustainable economic growth and innovation.

Leaders from Cambridgeshire and Peterborough have been working closely and effectively together and have been meeting regularly with Chief Executives to work through the various options in relation to local government reorganisation (LGR). A working group of officers from all our authorities is also meeting regularly to develop a shared evidence base that can inform subsequent proposals.

We are entering into LGR with an open mind and spirit of wanting the best for all our residents and for the local area as a whole. Not all of us would have chosen this path but we accept that it is the path we are on.

We are not currently in a position to respond to all the points raised in your letter in the time available. Our Councils have been focused on setting legal budgets, driving efficiencies and improving services.

Pre-election period begins on March 25 and local attention is now turning to Mayoral and County Council elections which may have a bearing on the development of our LGR plans. Currently leaders are considering different unitary scenarios.

However, further work will be required following local elections to reach a shared understanding of how best to progress these to the next stage/business case. These scenarios will take account of historic community identities, the interests of residents, economic geographies, and local politics.

A strong economic base is a priority for us to counteract the significant pressures around Children’s services (including education) and Special Educational Needs, Adult Social Care and Housing. We will be spending the next few months considering the options, using data to inform our thinking, and using the LGR structures at officer and political level that have been put in place to enable a collaborative approach based on a jointly developed evidence base.

We are focused on ensuring that any proposals ensure that future unitarities are financially sound – this is a shared principle amongst all leaders. This may require us to look at boundary changes for districts although this is not our preference.

We recognise that any new council configurations will reduce the number of leaders compared with our current arrangements for the Mayoral Combined Authority, which under the government’s plans would become a Strategic Mayoral Authority. There is a risk this could have an impact on democratic accountability across our area which will need careful consideration.

We welcome a further meeting with MLCHG where we can work through the areas where we would appreciate more support.

Yours sincerely Cllr Anna Bailey, Leader, East Cambridgeshire District Council Cllr Sarah Conboy, Leader, Huntingdonshire District Council Cllr Mike Davey, Leader, Cambridge City Council Cllr Dennis Jones, Leader, Peterborough City Council Cllr Lucy Nethsingha, Leader, Cambridgeshire County Council Cllr Bridget Smith, Leader, South Cambridgeshire District Council