30 October 2026
5 min
On 29 October, the government announced that Local Government Reorganisation (LGR) in England was coming off pause.
For those in Surrey there's no change as expected. The pause didn’t apply there anyway, with work continuing to build the new unitary landscape and the Single Purpose Pensions Authority (SPPA) for pension officers. But others will now be expected to react.
Five counties have been told the government is ‘minded to proceed’ with LGR in their area and they’ve been invited to make representations about the local plans. These areas are:
The remaining 15 areas remain under review.
With the exception of Surrey, the vesting day for changes has been pushed back to 2029, with shadow authority elections due to take place in 2028 and local elections in 2027 (where they would ordinarily take place in that year).
Fundamentally, for the Local Government Pension Scheme (LGPS) funds affected by LGR, this latest decision gives officers time. For many, lots of work has already been done. However, for those funds that are considering changing operational structure there is plenty to be getting on with. The previous timeframes for making a business case for change to the government were tight. The extra time, assuming these also get moved back at least a year, will be vital to officers seeking to undertake all the discovery required to provide a fully reasoned business case.
The news has wider meaning too. For those areas that thought LGR might not happen or at least be delayed until after the next general election, it gives confirmation that change is coming. Those waiting on a decision won’t have all the details but that won’t prevent them from revisiting project plans and working out what can be done.
Let’s not forget the 2027 local elections. These raise the spectre of potentially brand-new pension committees forming at a crucial time in the LGR cycle. Building knowledge and skills effectively is going to be a key task for affected officers. They’ll need to make sure their fund is well positioned to make effective decisions which are in the best interests of its stakeholders, most crucially the members and beneficiaries.
For those areas which didn’t receive a ‘minded to proceed’ decision, the government has said further decisions will be made before Christmas with all areas receiving a decision early in 2027. With the specific mention of Christmas, this means the next update is less than 2 months away; a relatively short period of time.
For these areas the previous decisions have all been withdrawn, apart from West Sussex and Cambridgeshire/Peterborough which hadn’t received an initial decision.
Given the extra time being taken to consider proposals, it seems likely the ultimate decision for these areas might look a bit different to those that came before. The funds in those locations would be strongly recommended to consider how this might affect both their membership and employer base, not to mention the allocation of assets.
Yes, it did.
On Budget day, the government announced the creation of ten new devolution agreements. Mayoral Strategic Authorities will be formed in the following places:
Cornwall will also become a Single Foundation Strategic Authority with a Strategic Authority being set up to cover Kent and the Medway. More areas are yet to be agreed.
Not all of these new authorities align to areas going through LGR, marking a difference between LGR and devolution in England. However, they give valuable information about who will be the local mayor for funds going forward.
We often hear that this is a hugely busy time for the LGPS; funds should use this gift of extra time to the best of their ability to avoid LGR becoming a race against a deadline. This means revisiting project plans, identifying risk and opportunities, and thinking about what good governance will look like in a reorganised future.
Afterall, it’s better to have the elegant appearance of a swan on the water, whatever may be happening out of sight, than be seen to be a whirlwind of activity and doggy paddling to an end result.
If you'd like to discuss anything further, we would love to hear from you so please get in touch.
This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.
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