Agenda item

The Minister of State for Local Government and English Devolution invited Essex Leaders, to develop and submit a proposal for a single tier local government.  Following extensive work on a range of options, this report seeks Cabinet’s support for a submission making the case for establishing five new unitary councils for Greater Essex.  One of those unitaries being North-East Essex Council, in which Tendring would merge with Braintree and Colchester, along with the disaggregation of Essex County Council.

 

The support for this option over others is based upon Key Principles for Tendring as expressed by elected Members:-

 

  • Keeping local government as local as possible and embedding local accountability;
  • Sense of place and recognising the geographical linkages;
  • The structures of existing partnerships within North-East Essex and joined up decision making;
  • Ensuring on-going delivery of high-quality services; and
  • The option is financially sustainable.

 

The evidence seen by this Council indicates that “The proposal for growth: five new Unitary Councils for Essex” option meets the statutory criteria and is viable financially across Greater Essex, with the unitary authorities proposed being sustainable, based on good stewardship.  The ‘five new Unitary Councils’ option would also support devolution and ensure all areas of Greater Essex were equitably represented on the Mayoral Combined County Authority.

Decision:

RESOLVED that Cabinet, in response to the formal invitation from the Minister of State for Local Government and English Devolution to submit proposals for a single tier of local government for Greater Essex by 26 September 2025, in accordance with the statutory criteria as set out in the invitation:-

 

(a)  supports the principles of the case for five new unitary councils for Essex, with the District of Tendring forming part of the proposed new North East Essex Unitary Council based on:

 

(i)              keeping local government as local as possible and embedding local accountability;

(ii)             sense of place and recognising the geographical linkages;

(iii)            the structures of existing partnerships and joined up decision making;

(iv)            ensuring on going delivery of high quality services; and

(v)             the option is financially viable and sustainable on the basis of good stewardship by the future unitary councils; and

(vi)            the statutory criteria have been addressed.

 

(b)  agrees that Tendring District Council is included as a supporting council to the Final Plan for Local Government Reorganisation “The proposal for growth:  Five new unitary councils for Essex” for submission in response to the Minister’s invitation;

 

(c)   agrees that it may be necessary for the Leader, upon receipt of and detailed consideration of additional information following Cabinet’s decision, to make a further decision before submission within the deadline given by the Secretary of State, based upon the Key Principles for Tendring;

 

(d)  in respect of (c) the Leader will inform all Members and consult the Chief Executive, prior to any such decision being made;

 

(e)  notes that in response to the statutory consultation stage to undertaken by Government, formal decisions will be taken by the Leader, in consultation with the Chief Executive, without reference to Cabinet/Council but following notification to all Members of his proposed draft response; and

 

(f)    supports the Leader and Chief Executive continuing to provide periodic briefings to Members (and reports as necessary) as the agenda around devolution and local government reorganisation develops locally, acknowledging the extensive detail they will need to convey as this process proceeds.

 

Minutes:

Cabinet recalled that, on 5 February 2025, the then Minister of State for Local Government and English Devolution (“the Minister”) had confirmed acceptance of the request from Essex County Council, Southend City Council, and Thurrock Council to join the Priority Devolution Programme and had invited all the Council Leaders in Greater Essex to develop a proposal for Local Government Reorganisation (LGR).  The invitation was attached as Appendix A to the Leader of the Council’s report.

 

Cabinet was aware that the Secretary of State would decide on the final shape of LGR (expected in March 2026), informed by those proposals and a government-led statutory consultation in the Autumn of 2025. 

 

Criteria for Unitary Local Government

 

It was reported that the Government’s Devolution and LGR agenda outlined a clear ambition for sustainably simplifying local authority structures, enhancing local democratic accountability and driving economic growth.  Guidance within the Schedule to the Secretary of State’s LGR invitation letter had set out the Criteria for unitary local government which included as follows:

 

1.     A proposal should seek to achieve for the whole of the area concerned the establishment of a single tier of local government.

2.     Unitary local government must be the right size to achieve efficiencies, improve capacity and withstand financial shocks.

3.     Unitary structures must prioritise the delivery of high quality and sustainable public services to citizens.

4.     Proposals should show how councils in the area have sought to work together in coming to a view that meets local needs and is informed by local views.

5.     New unitary structures must support devolution arrangements.

6.     New unitary structures should enable stronger community engagement and deliver genuine opportunity for neighbourhood empowerment.

 

The Interim Plan

 

Members were informed that the invitation had required that an Interim Plan be provided to Government on, or before, 21 March 2025, setting out progress on developing proposals for LGR in line with the criteria and guidance.  The invitation had set out a list of matters the Interim Plan should cover.

 

The Interim Plan submitted for Greater Essex had set out the progress made as at 21 March 2025, by local authorities in developing proposals for LGR within the area.  The Interim Plan had been submitted to full Council on 11 March 2025 (Minute 117 referred).

 

The Interim Plan had been developed by councils across Essex, with this Council taking the lead, working collaboratively, both to explore new unitary structures, and the working arrangements required to enable the development of full reorganisation proposals, in the interests of local residents.  Feedback had been received from MHCLG in their letter dated 7 May 2025, which was included within Appendix B to the Leader’s report.

 

Development of final LGR proposals:

 

It was reported that, following submission of the Interim Plan and MHCLG’s feedback, two workstreams had commenced. One had focused on the five unitary authority (5UA) model lead by Southend-on-Sea City Council and a second focused on alternative options, being led by Essex County Council.  Two individual councils had subsequently sought to pursue differing cases for four unitaries across Greater Essex.

 

Whilst the Government’s stated preference was to see a single submission for LGR from councils in Greater Essex based on a common data set, an authority responding to the invitation could either make its own proposal or make a proposal jointly with any of the other authorities invited to respond.

 

Cabinet was reminded that the Leader, Chief Executive and other officers within Tendring District Council had contributed to both workstreams (namely those led by Southend City Council and by Essex County Council) as initially developed, in line with the decision of this Council.  The emerging options were considered to ensure that the District of Tendring was in its best possible position through LGR, as required by the decision of Council on 21 January 2025.  Over time, Essex County Council had reduced wider involvement on their emerging proposal for three unitary councils and both four unitary council options were based on localised issues, albeit Rochford District Council had provided some information to Essex councils which was referred to within this report.  To date nothing had been provided by Thurrock Council.

 

Throughout the process the Minister or MHCLG had issued further communications to the Chief Executives providing various updates, one being to Parliament on Local Government Reorganisation on 3 June 2025, included as Appendix C, which had set out the position regarding Neighbourhood Area Committees (referred to within the Background Section of the report).  Another communication from the Minister to the Leaders on 25 July 2025 had provided further information, included as Appendix D, and attached ‘considerations for partnership working in social care for new unitary authorities’, ‘summary of LGR process’ and ‘an explanatory note on financial decisions before LGR’.  Reference had also been made to the information on the LGA hub and its updated FAQs.  

 

Government to decide on the final shape of LGR in Greater Essex

 

Ultimately, the decision on the number and shape of unitary councils under LGR for Greater Essex would be taken by the Secretary of State, which was expected in March 2026 following a statutory consultation exercise. A Structural Changes Order would then be submitted to both Houses of Parliament. More detail and the milestones were set out within the Leader’s report. 

 

Strong working relationships to continue with Partner Councils in Essex:

 

Members were advised that, whichever proposal was ultimately chosen; the Councils would need to work together to implement the best outcome for Greater Essex.  The future success of LGR was dependent upon how the new unitary councils were managed to ensure sustainability within a positive organisational culture.  Irrespective of which option was pursued by the Secretary of State, the outcome for the new unitary council, in which the current District of Tendring would sit, would include disaggregation of services and functions currently delivered by Essex County Council (ECC), therefore the relationship with the North East Essex Councils and the ECC should continue to remain strong to ensure a smooth and efficient transition of services with minimal disruption for the users and the District of Tending.

 

‘Key Principles for Tendring’ underpin recommendations to Cabinet on the preferred option

Cabinet was cognisant that the proposal for LGR for the Greater Essex area included a huge amount of documentation based upon gathered evidence. Consequently, Cabinet was requested to support the concept of the five unitary council case, based upon the Key Principles for Tendring, as set out within the report, and that evidence base. 

 

Cabinet was aware that one of the Key Principles expressed by elected Members was to ensure that the supported option was financially sustainable.  Assurance on this important consideration had been taken from the extensive work of Grant Thornton, PeopleToo and CIPFA (referenced later in the finance section of the Leader’s report) who had all affirmed that the options were financially sustainable.  Although the decision to be made either at this Council’s Cabinet level or ultimately by the Government would not be a so-called ‘accountants’ decision, the new unitary authorities would need to identify and consider some challenging decisions as part of delivering their long-term financial sustainability. 

 

Therefore, the proposal for five new unitary councils in Greater Essex was recommended to Cabinet for its formal support. The proposed Submission had concluded with the following statement which aligned with the Key Principles for the District of Tendring:

 

represents a bold, evidence-led response to the challenges and opportunities facing the region. We offer a pragmatic and future-ready model that balances strategic scale with local identity, enabling more efficient, accountable, and responsive governance.

 

By aligning with the Government’s criteria for reorganisation, the five unitary authority model ensures continuity of high-quality services, unlocks significant financial efficiencies, and empowers communities through stronger local leadership. It avoids the risks of over-centralisation, preserves civic pride, and supports tailored solutions to complex issues such as housing, social care, and economic growth.

 

With widespread collaboration, robust public engagement, and a clear roadmap for transition, this proposal lays the foundation for a simpler, stronger, and more sustainable system of local government.  This proposal is rooted in place, driven by local needs, and equipped to deliver for the people of Greater Essex for generations to come.”

 

The Leader’s report highlighted that further significant information could become available following its publication and possibly after Cabinet’s decision, therefore it was considered necessary to include an endorsement recognising that the Leader, might make a subsequent decision based on any significant new information that impacted on the Key Principles for Tendring, with details being circulated to all Members beforehand.

 

Implementation of LGR

 

It was reported that, in addition to seeking Cabinet’s support for the proposal being submitted to MHCLG the next steps had been highlighted, together with a programme of actions in response, to prepare for the implementation of those proposals and plans for reorganisation.  Considerable work was necessary for Tendring District Council as an outgoing council to ensure, with the shadow authority, that the new unitary would be, at the very least, “safe and legal” on Vesting Day – the day when the new authority took on its powers and became operational.  The risks and milestones sections of the Leader’s report addressed those requirements. However, the management of this process would involve Cabinet, individual Portfolio Holders and the Council’s senior management and leadership team, with updates being presented to the Audit Committee (through monitoring of the Annual Governance Statement) and all Members through the All-Member Briefing process.

 

Access to the main LGR proposals and commentary

 

The Foreword & Executive Summary of the final proposed submission had been included as Appendix E to ensure that Cabinet could support the principles of the proposal for five new unitary authorities.  The full and final proposed submission is accessible through the link provided within the Background Papers section of the Leader’s report.

 

A paper prepared by PeopleToo entitled “Local Government Reform – An Adult and Children’s Service’s Lens” presented to all Chief Executives by the District Council Network (DCN) in July 2025, supported the premise of LGR being ‘a genuine opportunity, despite its challenges’. The PeopleToo paper was attached as Appendix Fand was referenced within the risk section of the Leader’s report.

 

The reasoning behind the Cabinet’s decision (as set out below) was as follows:-

 

“In accordance with the decision of Council in January 2025, all viable models were carefully considered against meeting the Key Principles for Tendring, keeping local government as local as possible and embedding local accountability; a sense of place and recognising the geographical linkages; the structures of existing partnerships within North East Essex and joined up decision making; ensuring on going delivery of high quality services; and the option is financially sustainable.

 

Following this consideration the five unitary council model emerged as the most balanced, deliverable, and future-proof configuration, because: 

 

  • is fully aligned to the Ministry of Housing, Communities, and Local Government’s (MHCLG) six criteria and provides appropriately sized councils to achieve efficiencies, withstand shocks, and support devolution without losing the critical ability to address local issues;
  • resists over-centralisation, preserves recognisable identities and familiar geographies, and will provide better local outcomes through coherent strategies delivered in partnership with both our residents and local partners; and
  • is best aligned to the natural geographies, socio-economic areas, communities, infrastructure corridors, and the vital sense of local identity and place that underpin effective local government within Greater Essex.

 

This view is based upon what is best for Tendring, reinforcing the Key Principles set out earlier, and the Greater Essex area and its systems as a whole, for example, ‘Focusing on localism, locality and a sense of place, representing diverse communities and their needs, acknowledging the geography setting, building on existing strong partnership working and joined up decision making across borders.  Recognising that all the new Unitiaries established through LGR must be financially sustainable in the way that they are managed in the future with positive culture and relationships working across the sector.’

 

Larger, overly complex authorities risk diluting governance, as Senior and statutory officers may be too stretched to maintain the necessary visibility, responsiveness, and control across all service areas and the whole geography of the authority.  A structure based on five unitary councils strikes a pragmatic balance: each authority is substantial enough to be resilient and efficient, yet sufficiently contained to enable robust, hands-on governance by its statutory leadership.”

 

It was moved by Councillor Stephenson, seconded by Councillor Hendersonand:-

 

RESOLVED that Cabinet, in response to the formal invitation from the Minister of State for Local Government and English Devolution to submit proposals for a single tier of local government for Greater Essex by 26 September 2025, in accordance with the statutory criteria as set out in the invitation:-

 

(a)   supports the principles of the case for five new unitary councils for Essex, with the District of Tendring forming part of the proposed new North East Essex Unitary Council based on:

 

(i)                 keeping local government as local as possible and embedding local accountability;

(ii)                sense of place and recognising the geographical linkages;

(iii)              the structures of existing partnerships and joined up decision making;

(iv)              ensuring on going delivery of high quality services; and

(v)               the option is financially viable and sustainable on the basis of good stewardship by the future unitary councils; and

(vi)              the statutory criteria have been addressed.

 

(b)   agrees that Tendring District Council is included as a supporting council to the Final Plan for Local Government Reorganisation “The proposal for growth:  Five new unitary councils for Essex” for submission in response to the Minister’s invitation;

 

(c)   agrees that it may be necessary for the Leader, upon receipt of and detailed consideration of additional information following Cabinet’s decision, to make a further decision before submission within the deadline given by the Secretary of State, based upon the Key Principles for Tendring;

 

(d)   in respect of (c) the Leader will inform all Members and consult the Chief Executive, prior to any such decision being made;

 

(e)   notes that in response to the statutory consultation stage to undertaken by Government, formal decisions will be taken by the Leader, in consultation with the Chief Executive, without reference to Cabinet/Council but following notification to all Members of his proposed draft response; and

 

(f)     supports the Leader and Chief Executive continuing to provide periodic briefings to Members (and reports as necessary) as the agenda around devolution and local government reorganisation develops locally, acknowledging the extensive detail they will need to convey as this process proceeds.

Supporting documents: