County Hall looks at a two-council future for Lancashire

County councillors are being asked to consider a ‘landmark proposal’ to create two new unitary authorities for Lancashire.

Members are set to review a comprehensive 200-page business case that outlines a preferred option to replace the current two-tier system of local government with two new single-tier authorities.

The proposal is being put forward at a full meeting of the council next week.

It is in response to the government’s plans to streamline local government structures across England. The plans would see Lancashire’s 15 existing borough, district, unitary and county councils dissolved.

A statement from County Hall said: “A range of options involving varying numbers of councils were carefully assessed during the development of the business case.

“However, the report concludes that these alternatives would not offer the best value for Lancashire’s residents.

“Instead, the preferred option of creating two new unitary authorities broadly divided by the River Ribble, is described as the most balanced and forward-looking solution.”

The proposed new councils would be responsible for delivering all local authority services, including education, social care, highways, waste collection, planning, housing and leisure.

Councillor Stephen Atkinson, leader of Lancashire County Council, said: “It is no secret that I am opposed to the wholesale reorganisation of local government in Lancashire, particularly the speed at which these changes are being proposed.

"At a time when finances across the sector are stretched incredibly thin, the cost of abolishing 15 councils and replacing them with new unitary authorities will place a significant burden on council tax payers. With years of increasing council tax, we need a robust financial solution which avoids residents paying the price.

“However, government policy is clear. Change is considered necessary, and as a county council, we have a duty to put forward a proposal that serves the best interests of local people.

“This business case has found the proposal for two new authorities offers the most effective and sustainable solution for Lancashire.

“It also suggests this is the best option in terms of delivering high-quality services for residents, invest in our communities, and build a stronger, more resilient future for everyone.

“Next Thursday's full council meeting will provide an opportunity for all members to debate the business case and put forward a recommendation to the council's cabinet.”

It is expected that one submission, with proposals ranging from two to five new councils, will be submitted to central government on behalf of Lancashire’s 15 councils on November 28.

The government is expected to launch a public consultation on the proposals early next year, with a preferred option selected by the summer.

Elections for the new shadow authorities could take place in May 2027, with the new councils assuming full responsibility for services from April 1, 2028.

Local Government Reorganisation (LGR) is separate from the county’s devolution process.

However, the new unitary councils would become constituent members of the Lancashire Combined County Authority (LCCA), which will continue to lead strategic initiatives in transport, innovation, trade, investment, skills, and adult education.

The North and Western Lancashire Chamber of Commerce (NWLCC) is urging the government to approve three unitary authorities for the county – saying it is what business wants and needs.

Hundreds of businesses have backed its proposal following a consultation exercise sparked by the impending re-organisation of local government in Lancashire.

The Preston headquartered chamber’s formal position is that Lancashire should be governed by three unitary authorities.

Its plan would see Fylde, Wyre, Blackpool and Lancaster come together. Preston, Chorley, South Ribble and West Lancashire would make up the second local authority with the councils of east Lancashire combining for the third council area.

The chamber is urging the government to “heed the voice of business in the county” and support its proposals. And it has written to local government secretary Steven Reed setting out its case.

Babs Murphy, chief executive of the chamber, said: “Business has spoken, and the chamber has listened. As a voice of business, we have listened to members concerns and recommendations for all proposals and believe three unitary authorities would be the best for the county.

“A three unitary authority falls within the government’s population guidelines, connects existing councils with similar economic identities and could deliver better services to businesses and residents.

“Having a coastal, central and eastern local authority keeps local identity intact and promotes business collaboration, as well as reducing service duplication as some of these district councils already work together.

“The county requires clarity, accountability and an efficient local government structure which will strengthen our competitiveness. We urge the government to consider the chamber’s proposal to ensure the restructure benefits the entire community and promotes social and economic growth for the county.”

Leaders of the Preston Partnership have thrown their support behind proposals to create a new unitary authority bringing together Preston, Chorley, South Ribble and West Lancashire.