Devolution and local government reorganisation

In December the Government announced a major programme of reform for local government including two related but separate initiatives:

  1.  Devolution: Transferring powers and funding from Whitehall to local areas by creating regional Strategic Authorities with an elected Mayor, covering populations of over 1.5 million in all areas of England that do not already have them.

  2. Local Government reorganisation: Ending two-tier county and district council arrangements by reorganising local government to create new unitary local authorities with populations of at least 500,000.

Local Government Reorganisation – National guidance and sector considerations (August 2025)

As part of the ongoing national programme for Local Government Reorganisation, the Ministry of Housing, Communities and Local Government (MHCLG) has issued a series of letters and guidance documents to council leaders across the region. These materials are intended to support councils in preparing robust, sustainable proposals and do not signal immediate changes to services or staffing.

The guidance includes considerations for partnership working in areas such as adult social care, governance expectations, and financial planning during the development of proposals.

The Isle of Wight Council is already a standalone unitary authority, and this status is maintained in all proposals being submitted for Local Government Reorganisation. This reflects the Island’s distinct geography, identity, and service delivery needs, and has been consistently supported by all 15 councils involved in the process.

Local Government Reorganisation

The Government would like all areas of England that currently have two-tier councils to have one single unitary council instead covering populations of more than 500,000 each

For some areas of the country, this will mean that district and borough councils are likely to disappear and be integrated into new unitary authorities.

However, the Government has also indicated there may be exceptions and they may allow smaller councils, such as the Isle of Wight which is already a unitary authority, to exist in exceptional circumstances on a case-by-case basis.

The Invitation from the Minister to the local authorities in Hampshire and the Solent area inviting proposals for local government reorganisation can be read here

The draft ‘Hampshire and the Solent Local Government Reorganisation (LGR) – Interim Plan‘ agreed upon by all 15 authorities in the Hampshire and Solent area (including the Isle of Wight) has now been published.

This interim plan outlines guiding principles, such as financial sustainability, a clear sense of place and identity, and community feedback.

It also seeks an early indication from government that the Isle of Wight will be allowed to remain a separate unitary authority.

The interim report was considered and supported by Full Council on Wednesday 19 March 2025 and approved by Cabinet on Thursday 20 March 2025. The Cabinet report is available to view online

Further work will take place collectively over the coming months to agree on final proposals to be submitted in the autumn.

These proposals will need to reflect key criteria set by the government, such as prioritising high-quality and sustainable public services, achieving efficiencies, improving capacity to withstand financial shocks, and enabling stronger community engagement.

The final proposal for local government reorganisation in Hampshire and the Solent area will be considered by Full Council later this year.

The Leaders have now written to the government with the interim plan.

Following the submission of the interim plan for Local Government Reorganisation (LGR) across Hampshire, the Isle of Wight, Portsmouth, and Southampton, we have received early feedback from the Ministry for Housing, Communities and Local Government (MHCLG).

More information

If you wish to know more, further information including helpful videos and FAQs, is available on the Local Government Association website.

Devolution

Devolution is where powers that currently sit with the national government are given to a local area so local decision makers can have more of a say in what happens in their area. It is important because it ensures that decisions are made closer to the local people, communities and businesses they affect. The Government is keen to do this through something called Strategic Authorities.

 Devolution could mean:

  • Better co-ordination of transport across the whole region
  • Better support for skills development for our residents because money will be spent locally rather than by national government
  • More strategic control over planning and housing
  • A stronger voice for our region with central Government

Devolution would see a Strategic Authority created covering the whole of Hampshire and The Solent, but local councils would still exist and be members of it. Separately to devolution, the Government is keen on Local Government Reorganisation, but that is a separate issue.

The Isle of Wight Council would still have the responsibility for setting local priorities and delivering them and the services you will be familiar with. Our elected councillors would remain accountable to the Island electorate. This would be similar to existing arrangements across the country such as Manchester where Andy Burnham is the Mayor of the Manchester Combined Authority and all the councils in that area still having council Leaders.

On 10 July 2025, the council received a letter from Minister of State for Local Government and English Devolution Jim McMahon OBE MP regarding the introduction of the English Devolution and Community Empowerment Bill to Parliament. 

Hampshire and the Solent devolution bid

On 6 February 2025, the Government announced that Hampshire County Council, Portsmouth and Southampton City Councils and Isle of Wight Council had been successful in their joint bid for inclusion on the Government's fast-track Devolution Priority Programme (DPP).

A regional Mayor will be elected to head up a new Strategic Authority across the wider region. The mayor will be responsible for driving local economic growth, strategic planning and infrastructure, strategic transport, and other areas. Their powers and funding will be transferred from government departments.

Elections for a mayor are expected to be held in May 2026.

To enable our region to progress devolution to the most ambitious timeframes, the Government has confirmed that local elections for the Isle of Wight Council will be postponed until May 2026. They were due to take place in May 2025.

Town, parish, and community council elections are still planned to go ahead this year.

Devolution plans move forward – July 2025 update

Plans to establish a new Mayoral County Combined Authority (MCCA) for the region have taken a significant step forward, following confirmation from central government that the necessary legislation will be brought forward.

Subject to agreement by the constituent authorities and subsequent approval by Parliament, elections for the new Mayor will take place in May 2026.

The Isle of Wight Council, alongside Southampton City Council, Portsmouth City Council, and Hampshire County Council, continues to work closely with government to shape the legislative framework that will underpin the new powers and formally establish the MCCA.

Local councillors will have the opportunity to review and consider any proposed devolution arrangements later this year.

A copy of the Ministerial statement issued on Thursday, 17 July 2025 is available on the UK Parliament Written Statements page

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