Hampshire council merger plans branded ‘costly, chaotic car crash’ after Angela Rayner U-turn

The Government has withdrawn its approval of Hampshire’s local government reorganisation plans following fresh legal advice, while Surrey’s transition to two new councils will continue as planned.

The decision has prompted anger from East Hampshire leaders, who have accused ministers of wasting millions of pounds and called for compensation for the resources spent preparing for the shake-up.

Housing Secretary Angela Rayner announced on Monday (September 7) that the Government would review its local government reorganisation programme and withdraw decisions previously made for Hampshire, Essex, Norfolk and Suffolk.

The review will also cover decisions in 14 other areas, with local elections in May 2027 now set to proceed on existing council boundaries while ministers reconsider the proposals.

Surrey is outside the review because its two new unitary authorities have already been established in law. Elections for East and West Surrey took place in May 2026, and the shadow councils are preparing to take over services on April 1, 2027.

West Surrey Council will replace the existing arrangements across Woking, Waverley, Guildford, Runnymede, Spelthorne and Surrey Heath, alongside Surrey County Council’s responsibilities in those areas.

The Government’s March decision would have replaced the existing councils across Hampshire and the Solent with four new mainland unitary authorities, while the Isle of Wight would remain a standalone unitary council.

Most of East Hampshire was due to join Winchester, Test Valley and the New Forest in a Mid Hampshire authority. Horndean, Rowlands Castle and Clanfield would have moved into the South East Hampshire authority.

The new councils had been scheduled to begin operating in April 2028, but that timetable is now uncertain.

The Government said the review was intended to ensure the process was legally robust and aligned with the priorities of the new administration.

Ms Rayner said: “In light of legal advice, I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law.

“And secondly, I want to fully test whether our proposals for local government reorganisation meet the priorities of a new administration and a new prime minister and any additional considerations.”

East Hampshire District Council leader Cllr Richard Millard accused the Government of wasting millions of pounds of public money and said councils should be recompensed for the resources spent on the plans.

“What a colossal waste of tax payers' money. The Government's approach to LGR has been one costly, chaotic car crash.

“It makes me sick to see how much has been squandered on this opaque, flip-flopping idea.

“Angela Rayner is back, and she’s clearly used to having to make excuses. After this costly U-turn, perhaps it’s time she stopped making excuses and started making apologies to the taxpayers left footing the bill.”

Cllr Millard said the work involved in preparing to unify services across Hampshire had been “absolutely astronomical”.

“And now, out of the blue, they call it all to a halt.

“I said on the day the decision was made that the option chosen by the Government was not right for Hampshire, that it did not follow the Government's own criteria and that it was the worst option for Hampshire.

“They didn't listen to any of the Hampshire politicians who said from the outset that it wouldn't work.

“Instead, they arrogantly pressed on, completely disregarding dissenting voices.

“They have ploughed their own furrow, but it is the people of Hampshire that will reap the bitter harvest of this costly fiasco.”

He added: “I will be pushing for compensation for the resources that have been lost to this misguided pie-in-the-sky idea which could have been spent on the people of East Hampshire.”

East Hampshire MP Damian Hinds said he had consistently argued that the Government’s approach would be costly, bureaucratic and risk taking services further away from residents.

“I have consistently argued that the Government’s top-down reorganisation of local government would be a costly and bureaucratic exercise that nobody asked for - and nobody voted for. Worse still, it risked taking local services further away from the people they are there to serve, while increasing costs in key areas.

“So I’m pleased that the Government has finally hit the pause button on this disastrous scheme.”

However, Mr Hinds said it remained unclear whether the announcement would lead to the plans being abandoned permanently.

“It sounds very much like it was legal advice, rather than an actual change of heart, that has produced the pause. So whether this turns into a full U-turn, or simply a pause and reset, remains to be seen.

“For now, at least, East Hampshire stays together.

“But already there has been waste - in time, focus and money - as a result of pursuing an ill-thought-through scheme and then changing the spec part-way through.”

Hampshire County Council leader Cllr Nick Adams-King said the withdrawal demonstrated why the authority had been right to challenge the original decision.

“I very much welcome the Secretary of State’s decision to withdraw the Government’s Local Government Reorganisation decision for Hampshire and the Solent.

“This is the right decision and, frankly, it demonstrates exactly why Hampshire County Council was right to challenge the previous process.”

He said the challenge had not been about defending the existing council structure, but ensuring a major reorganisation was lawful, properly evidenced and financially sustainable.

“The Government now has an opportunity to reset this process.

“My view remains that we should bring Hampshire and the Solent’s councils back around the table, give them the time and information necessary to develop a properly costed and financially sustainable solution, and wherever possible build consensus around it.”

Cllr Adams-King warned that getting the reorganisation wrong could have cost Hampshire residents tens or even hundreds of millions of pounds over the coming decade and damaged frontline services.

He also welcomed confirmation that elections would take place in May 2027 on existing council boundaries.

The Local Government Association said ministers must set a clear timetable and ensure councils are not left to pick up the bill for the review.

A spokesperson said: “Councils need certainty to plan how to deliver vital services to residents and meet demand pressures, and, as we said in July, their expert view needs to be embedded in LGR decision-making.

“Ministers must now set a clear timetable and ensure councils are not left to pick up the bill.

“This review must therefore be used by government to work in true partnership with councils to provide clarity in putting right its own mistakes.”