LGR funding – Government confirms £7.6m to support proposal development
On 3 June, the Government confirmed that £7.6 million will be distributed to the 21 areas currently developing proposals for local government reorganisation (LGR).
Each area will receive a flat £135,000, plus an additional 20p per resident based on the latest ONS population figures. The funding, known as Local Government Reorganisation Proposal Development Contributions, is designed to support local areas as they shape their cases for change.
Details of individual allocations are available here.
But while the funding is no doubt welcome, it raises an important question - how far will it actually go?
The short answer: not far enough.
The work involved in preparing a robust, evidence-led LGR proposal is substantial. It requires detailed modelling, legal and governance advice, service disaggregation plans, community engagement, and alignment with future devolution ambitions. In that context, these contributions are modest - helpful, but far from sufficient.
It’s worth remembering that LGR is not just a structural exercise. The implications for service delivery, accountability, local identity and funding sustainability are profound. For proposals to be successful, they must be both technically sound and politically supported – and developing that kind of blueprint takes time, collaboration, and meaningful investment.
What this funding does signal, however, is a continued intent from Government to support areas through the process, at least in principle. With deadlines approaching, councils will need to think carefully about how to make the best use of available support while ensuring their proposals are fit for purpose.
Preparing for local reform?
From governance models to funding and community voice, the pace of change is accelerating. Get in touch with Mark Heath in our Government & Public Services to discuss how we can support your organisation in navigating Local Government Reorganisation and the wider devolution agenda.
