Agenda item

That the update report be received and noted.

The Chief Executive introduced a report updating Cabinet on Local Government Reorganisation (LGR) following the announcement made on 16 July, 2026.

The Government had indicated its intention to replace the current two-tier local government system in Staffordshire with two new unitary authorities from 1 April, 2028 – subject to parliamentary approval.

Newcastle-under-Lyme would become part of a North Staffordshire Unitary Authority alongside Stoke-on-Trent and Staffordshire Moorlands Councils and bringing in parts of Staffordshire County Council’s functions.

The report set out the opposition to the proposal and the Leader of the Council’s ongoing representations to Government.

The Leader stated that it had been a ‘dark day’ for the Loyal and Ancient Borough of Newcastle-under-Lyme when the decision was announced.  The previous Administration were thanked for their work in gathering over 11,000 signatures on the ‘Save our Borough’ Petition.

The Leader had written to the Prime Minister and Secretary of State and responses were awaited.

The Leadr asked the Service Director for Legal and Governance/Monitoring officer if there was a timeline for the receiving of legal advice ahead of the Special Council Meeting scheduled for 2 September, 2026.  The Service Director stated that a Brief was sent to leading counsel on or around 23 July with a response being requested by 20 August, 2026.

The Leader, stating that the Service Director had already looked at some of the decisions taken by Essex & Harlow and asked what the framing was for those judicial reviews at this moment in time. The Service Director stated that the first issue would be ‘did we have grounds’; the second issue would be that if we did have grounds, what would be the best way to take them forward – whether it was to join in another judicial review.  There were some doubts about the Essex authorities in that they were claiming different grounds to what this Authority would claim.

The Portfolio Holder for Residents Services and Neighbourhoods stated that this had been a shocking announcement.

The Portfolio Holder for Finance referred to the monumental debt that Stoke City Council had at the moment and stated that, from a monetary point of view, it was an abysmal decision for Newcastle.

The Leader agreed and asked the Service Director for Finance/ Section 151 Officer what money had been set aside for this and what, if any financial support the Council was being given.  The service Director advised that Central Government had announced that there would be £900,000 allocated to each new authority, so £1.8m across Staffordshire.  This Council had set aside £400,000 in a reserve fund for LGR which would be topped up by a further £200,000 in the new financial year.

The Leader asked what portion of the £900,000 Newcastle would receive or was that solely at the discretion of the new authority when it was set up in May, 2027.  The Chief Executive advised that the allocation was yet to reach Staffordshire County Council whose Chief Executive was the senior responsible owner.  However, from the £900,000 would have to come the core costs, for example staff for the programme and associated legal costs so on that basis Newcastle might see a very small proportion, if anything.

The Leader stated that that was of grave concern as there was approximately £783m of outstanding debt associated with Stoke City Council alongside £69.5m of exceptional financial support.  The Leader stated that he intended to  write to all council leaders with in the North Staffordshire proposed area to see if they would join with him, alongside all of the local MP’s, to send a clear letter to Government stating that if LGR was going ahead, the debt must be cleared.

Elections would take place in May, 2027 for 84 councillors for the new authority. The Council’s Administration would remain in post until 1 April, 2028. 

Resolved:    That the update report be received and noted.

Watch the debate here