Your LGR questions answered

Local Government Reorganisation is the process by which the government is replacing Lancashire's current 15 councils with four new unitary councils.

These new councils will be responsible for all local services in their area, such as education, social care, waste collection and planning.

At this stage, we are continuing to plan and prepare in line with the current Local Government Reorganisation timetable.

We understand that national priorities can change, and that staff may have questions about cost, value for money and the impact of running shadow councils during the transition. However, councils need to keep preparing because of the scale of the change and the need to make sure services continue safely.

If the government position changes, or if there are any formal changes to the process or timescales, staff will be updated as soon as possible.

There are currently no plans to transfer large numbers of staff or services from Lancashire County Council to the Combined County Authority.

The Combined County Authority and Local Government Reorganisation are separate programmes. They have different roles.

The Combined County Authority provides strategic leadership for areas such as transport, economic growth, skills and employment. Councils will continue to deliver most day-to-day services.

The names of the new councils have not yet been confirmed.

The names that have been reported in the media have been taken from the successful proposal for four unitary councils, which the government announced was its preferred option.

Councils in Lancashire have until 17 August to respond to Ministry of Housing, Communities and Local Government (MHCLG) on preferred names. We will keep you informed when those names have been agreed.

Current government policy is that costs are met locally. Lancashire has asked government to contribute and awaits a response.

Key digital system decisions need to be made early enough so new councils are ready for day one.

Work is taking place with services and councils across Lancashire to identify what is needed for essential systems. This includes payroll, social care, HR, finance, email and other services used by residents.

In some areas, more than one system may need to run at first. The new councils will then decide which system they want to use in the longer term.  

We will continue to deliver the transformation projects set out in our Council Plan and budget. Doing so will help ensure we hand over the strongest possible position to the new authorities.

The only caveat is that, in some cases, we may need to review some aspects of our transformation programmes to make sure they are aligned with the needs of the new unitary councils. However, delivering transformation remains a key priority, and it is important that we continue to make progress in these areas.

Staff will transfer to the new councils on 31 March 2028 on their current terms and conditions. Most people are expected to do broadly the same work they do now.

Now the areas for the four new councils are known, planning is underway to decide where services, teams and roles will sit. No decisions have been made yet about individual staff or teams.

This work is based on how services are delivered now and is not about making decisions about individual people at this stage.

Where there is no clear geographical link, a fair process will be developed and shared with affected staff.

Workforce allocation principles will be developed over the coming months and shared with trade unions and, later, the shadow councils. The aim is to share with staff early information by spring or summer 2027 about where roles may transfer.

Staff will be kept informed and will know their future employer well before transfer.

The new councils may review structures after transfer. Any future changes would need to follow the appropriate consultation process.

Staff will be able to discuss their personal circumstances with their manager. This could include preferences, reasonable adjustments, caring responsibilities, travel and work location. These will be taken seriously, but any decisions will need to support service needs, business continuity and available budgets.

Some work locations may change in future, but no decisions have been made yet. If your role is based at a specific site, such as a library, your location is less likely to change.

Supporting staff remains a priority, including colleagues with workplace adjustments. Reasonable adjustments are expected to carry forward into the new councils. These should be clearly documented as part of transfer planning, so the new employer understands what support is already in place and staff continue to get the support they need from day one.

No redundancies are planned as a direct result of LGR when staff transfer on 31 March 2028. The only exception would be where a role is already part of an agreed savings proposal.

The focus is on keeping services running and making sure staff move safely and smoothly to the new councils. The services we provide now will still be needed.

The four councils will be new organisations. No existing council has an advantage over another, and no decisions have been made about future staffing structures after transfer.

The new councils may review services in the future, but it is too early to say what this could mean for staff. Any changes affecting staff would need to follow the right consultation process, with staff involved and supported.

There is still a lot of planning to do before vesting day, when the new councils start operating. We will share more information with staff as soon as we can.

Staff will transfer to the new councils on their existing contractual terms.,

TUPE, which stands for Transfer of Undertakings (Protection of Employment) is designed to protect employees’ terms and conditions at the point of transfer. This includes contractual entitlements such as annual leave, continuous service, maternity and paternity-related rights, pay and formal flexible working arrangements.

Because councils currently have different pay scales, some people may initially be doing similar work on different pay. Any pay harmonisation (where pay scales are aligned), and later changes to terms and conditions, would be for the new councils to consider, in consultation with trade unions.

If you are a member of the Local Government Pension Scheme (LGPS), your membership will continue when you transfer to the new council. Your pension benefits will remain protected and your continuous service will transfer with you.

AVC arrangements are separate from your main LGPS pension and do not automatically transfer. Staff with AVCs will be given further information about what this means and any action they may need to take.

The detailed arrangements for administering the scheme after reorganisation are still being developed. These will be confirmed during the shadow year (2027) and staff will be updated when more information is available.

If you have a formally agreed working pattern or flexible working arrangement, this will be included in the information used as part of the transfer process.

If it is not clear whether an arrangement forms part of your contractual terms, managers should seek advice from HR so this can be confirmed before transfer.

Staff should continue to book and manage annual leave as normal.

Banked leave arrangements are being worked through. Staff will be updated as soon as there is a clear answer.

Employees sponsored under a Skilled Worker visa will be considered as part of workforce planning.

Skilled Worker visas can transfer under TUPE, but the new employer must have a valid UKVI sponsor licence. This will be considered through the workforce workstream as part of planning for service continuity.

Employee benefit schemes, including car lease arrangements, are being worked through as part of the planning for the new councils.

If any changes are needed, staff will be told as early as possible.

Any active dispute, grievance or disciplinary process will transfer with the employee to the new councils.

The intention is that apprenticeships, including degree apprenticeships, will continue when staff transfer to the new councils.

Investment in skills and development will be considered as part of transfer planning.

Services need to continue during the transition, so vacancies will usually continue to be filled where they are needed to maintain service delivery.

There are no plans for a recruitment freeze because of LGR.

Retaining staff is a priority during the transition. The knowledge, experience and commitment of existing staff will be essential to maintaining services and supporting the new councils from day one. The value staff will bring to the new councils should not be underestimated.  Having in place clear communication, regular engagement and giving staff the opportunities to raise views, questions and concerns will also be important.

At this stage, we do not yet know how individual traded services, or the staff who work in them, will be allocated across the four new councils.

Some services operate across a wider area than the proposed council boundaries. They support customers both within and outside Lancashire. Because of this, there is no automatic assumption that staff will transfer based on where they currently work, where they live, or where the schools or customers they support are located.

Detailed work is starting to decide how countywide and traded services will operate in future. This will include looking at service needs, customer relationships, commercial arrangements and how services can continue to run effectively after vesting day.

Decisions about future service and team arrangements will be made before staff are allocated to a new council. It is too early to say whether a service will sit within one council, be shared across councils, or operate in another way.

The aim is to provide clarity well in advance of transfer, and staff will be kept informed as detailed planning progresses.

Small, specialist and countywide teams will be considered as part of the work to decide how services transfer to the new councils.

Where teams are large and resilient enough to be split across the new councils, this may be the most likely approach.

Where this is not practical, there will need to be discussions about whether the service should be shared, hosted by one council, or organised in another way.

Teams affected by these decisions will be involved in discussions. The impact on service delivery will be considered before any decisions are made.

Staff should keep their personal information up to date in Oracle. This is the main source of workforce information used for transfer planning.

Staff should continue to raise questions and check areas such as, such as the intranet, staff website and managers, for the latest information.

We will continue to communication and engage throughout the transition. There may be times when there isn't much to say as planning is happening, but work is continuing.

All 15 councils are working together so information is shared consistently with staff, residents and partners. Staff expertise will be important at key points to test proposals, understand the impact on services and help shape practical decisions.

We understand that staff may feel anxious while there are still unanswered questions.

Questions and concerns will be fed into the relevant workstreams, and updates will continue to be shared as the programme develops.

Engagement forums, staff networks and short surveys may be used to understand staff concerns, support morale and help shape the culture of the new councils.

Existing staff networks, including change influencer networks and forums, are expected to play an important role during the transition.

The new councils will decide what networks they will have, but effective existing networks will be highlighted as good practice.

Staff should check the intranet and staff website for the latest information and to avoid misinformation.

Staff can raise rumours or concerns with their manager so they can be checked and clarified.

Heads of service will help share information with all teams, including staff who have limited access to the network.

Legal work needed for a safe and legal transfer will be managed through the programme workstreams.

Existing legal teams and officers will be involved where appropriate. Specialist legal advice will be brought in if it is needed.

Councils are setting aside funding to support this work, while recognising that staff still need to continue with their usual day-to-day work.

Some councils currently outsource services such as HR, finance, revenues and benefits.

The programme will review these contracts to understand what they cover and how they affect staff and services.

Some contracts may need to continue until a new operating model is agreed, as there may not be enough time to change every arrangement before day one.

The new councils will need to understand the assets and liabilities they will inherit. This includes private finance initiative arrangements, contracts and any workforce issues.

Work is taking place to identify these issues so they can be shared fairly and no new council is unfairly disadvantaged.

Historic Lancashire will continue in a ceremonial sense, but assets and finances will transfer to the new councils.

A legacy campaign is also being developed to recognise what has been achieved across Lancashire.

It's too early to say what will happen to County Hall. It would depend on the final structure and needs of the new councils.

The financial position of all councils has been considered as part of planning. Costs, liabilities and debt will need to be understood and allocated to the new councils.

The business cases included assumptions about how financial gaps could be addressed. The aim is to give each new council the best possible start, while recognising that local government finances remain challenging.

The new councils will need to manage financial pressures, while continuing to deliver service that residents rely on. As part of the transition, opportunities will be explored to improve efficiency.

Efficiencies may come from having fewer chief executives and senior managers, fewer buildings, more efficient systems, and better opportunities to join up services such as housing, adult social care, children’s services and leisure.

Services such as adult social care will continue to face significant demand and and the new councils will continue to adapt services to meet the changing needs of residents.

The 2027 election appoints shadow councillors who continue after vesting day. 

There is guidance that the number of councillors each unitary can have should be up to about 100, and depending on that, the size of the area they cover could vary.

A snap election is unexpected although not impossible. Different political parties have different views, including some scepticism, but based on the messages we've had so far, LGR is still expected to go ahead. Once new councils are set up, reversing the process, would likely prove to be difficult and expensive.

Government expects strong neighbourhood arrangements so the details about any additional responsibilities for parish and town councils will be for the new councils.

Shadow councils set up the new organisation but have limited authority over existing councils. County council business continues until March 2028.