Leicester and Leicestershire plans to streamline councils explained - and how it could affect Harborough


These could see the end of districts and boroughs in the county - which, of course, includes Harborough District Council.
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.
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Hide AdThe 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 anger by local political leaders in Harborough.
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 Harborough 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 (inlcuding Harborough District Council), 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.
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Hide AdWhat 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”.
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Hide AdExpanding 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?
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.
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Hide AdThis 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.
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.
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Hide AdWhen 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.