Huge shake-up of major councils scrapped by Angela Rayner after legal hurdles in ‘humiliation’ for No10

CONTROVERSIAL plans to shake up councils across England have been scrapped. Labour’s local government secretary Angela Rayner yesterday confirmed a scheme to reorganise Essex, Hampshire, Norfolk and Suffolk into unitary councils have been put on ice. Housing Secretary Angela Rayner confirmed the shake-up has been shelved Credit: Shutterstock Editorial Her predecessor Steve Reed has been accused of concocting the scheme to win more votes for Labour Credit: Alamy Other changes to 14 areas have also been pulled – with the sudden U-turn coming after what ministers reportedly described as “update legal advice” as part of a judicial review process brought by some of the affected councils. The biggest shake-up in more than 50 years would’ve seen England’s smallest county – Rutland – abolished and replaced by a larger authority stretching around Leicester. Sign up for the Politics newsletter Thank you! Unearthed evidence revealed Ms Rayner’s predecessor Steve Reed had rejected civil servants’ advice on the rejig and allegedly, according to critics, simply selected options that would favour Labour elections. The government’s plan to scrap the two-tier system of county above district councils, arguing it is inefficient, would have seen unitary authorities created across the country. Essex, for example, would’ve seen five unitary authorities in place of the current 15 district, borough, town, city and county councils – overseeing 1.9million people, as per Mr Reed’s plan. However, a letter sent by lawyers to Essex county council showed the ex-local government secretary had been advised against the five-council proposal, with it described as not “financially viable within five years”. They added it would risked forming councils that are at a “significant disadvantage” and said health officials had “low confidence” of making savings as a result. The Department for Health and Social Care, meanwhile, had a “strong preference” for four councils, and the Department for Education favoured three – with both raising concerns about plans for five. Most read in The Sun However, Mr Reed pushed ahead regardless, arguing it would increase housebuilding around cities. His critics said it essentially created councils in urban areas the party was most likely to win votes – with similar criticisms arising from similar overhaul plans in Hampshire, Norfolk and Suffolk. As part of the judicial review process, ministers faced having to hand over all internal docs about the decision. One local government source told The Times “it is a monumental climbdown”, adding: “There is no way they are going to be able to do this before the next election now as they will have to entirely re-run the process for Essex, Hampshire, Norfolk and Suffolk.” Ms Raynor assured MPs there was “no suggestion of wrongdoing” – though ex-Tory minister Steve Barclay said it was “gerrymandering”. A spokesperson for Mr Reed denied he had ignored legal advice, stating it had been “followed at every stage”. Reform UK leader Nigel Farage called the reorganisation an “unmitigated disaster”, while Sean Matthews, chair-elect of the County Councils Network, welcomed the U-turn. Essex county council leader said: “This unwanted, unnecessary and financially unhinged reorganisation of Essex’s councils is over. “Now we’ve succeeded in curtailing the government’s plans, we can now get back to what residents elected us to do — reforming Essex, providing the best possible services at the lowest possible cost.” Comment now