Transitional governance arrangements during local government reorganisation: Learning from previous examples

This note is designed to complement guidance from MHCLG about their expectations about implementation bodies in relation to Structural Changes Orders in this round of reorganisations.

During local government reorganisation (LGR), a Structural Changes Order (SCO) is made for an individual area. It will specify the transitional governance arrangements that will be used to prepare and oversee the transition to a new unitary council/s.

During the transition period, existing councils retain all statutory duties and carry on delivering their current services until vesting day, whilst preparing to transfer all assets, functions and staff to the new unitary/ies. The existing councils do not decide which model of governance will be used, although MHCLG will seek representations on transitional arrangements from existing councils.

In the past, SCOs have implemented one of two common transitional governance models:

This note represents the LGA’s own understanding of transitional governance during local government reorganisation. Authorities should also seek their own advice.

For more information about transitional governance during LGR, see MHCLG guidance about implementation bodies during the LGR transition period. Further resources can be found in the appendix.

A list of short definitions of key terms. For more detail, see the full information in the relevant sections.

• Existing councils or predecessor councils: Two terms for the councils which will be abolished on vesting day, unless a preparing council model is used.
• Implementation body: An umbrella term used to describe a body established by a Structural Changes Order during the transitional periods to prepare for the transfer to new unitary authority/ies. These bodies operate for a defined period and with a specific remit, set out in the Structural Changes Order. There are different types of bodies that may be put in place, depending on the transitional governance arrangements agreed for an area and the stage of transition.
• Implementation executive: A sub-committee of the preparing council’s executive, which facilitates transitional arrangements and prepare proposals prior to the election of the preparing council.
• Implementation team: A team of officers from the predecessor councils which will support the transfer of functions, staff, property, rights, liabilities and information from predecessor councils to the new unitaries. This team is in place during the entire transition period.
• Joint committee: A group of councillors from all councils in an area which facilitates preparations for transition prior to the elections to a shadow authority. The requirement for a joint committee is set out in the SCO and one joint committee is formed for each new council. Councils can decide to form an informal or voluntary joint committee before an SCO is made (see below definition for voluntary collaboration arrangement).
• Preparing council or ‘continuing authority’: An existing council which is designated to become the unitary council on vesting day and is granted the transitional functions to oversee this process. Councillors who are elected to this council in the transition oversee the structural change to a new unitary council, alongside their duties in relation to the business as usual. This model is an alternative to a shadow authority or shadow council.
• Shadow authority or shadow council: A new legal entity which will become the unitary council on vesting day. Councillors are elected to the shadow authority to oversee the structural change to a unitary authority throughout the transition phase. This model is an alternative to a preparing council or continuing authority.
• Shadow executive: The cabinet of the shadow authority, which is permitted to take specific decisions on behalf of the full shadow authority related to the transition to a new unitary authority.
• Structural Changes Order (SCO): A statutory instrument made by the Secretary of State which will abolish existing county and district councils in an area and transfer these councils’ functions to one or more unitary authorities. The SCO will include provision for transitional governance arrangements (‘implementation bodies’) which will discharge transitional functions in the transition period.  
• Voluntary collaboration arrangement: This is a voluntary or informal form of collaboration prior to any formal arrangement required by the Structural Changes Order. This could be a (voluntary) joint committee or other arrangement.

A voluntary collaboration arrangement, for example a voluntary joint committee, will start work preparing for reorganisation, which may include designing a draft implementation plan and supporting LGR readiness activities, including work on collating data.

The terms of reference for the West Surrey voluntary joint committee can be found here. In West Surrey, the terms of reference note that the voluntary joint committee will be responsible for the following:

1. Preparing, reviewing and revising as necessary the implementation plan, including budgets for transition.
2. Formulating proposals for the code of conduct for the shadow authority.
3. Taking preliminary steps to enable the (formal) joint committee to make recommendations to the shadow authority for the appointment of interim statutory roles.
4. Preparing, facilitating and subsequently formulating proposals for a members’ allowance scheme.
5. Agreeing the process for an independent review of a scheme of members’ allowances for the West Surrey / East Surrey Council shadow authority.
6. Agreeing proposals for a West Surrey / East Surrey Council shadow authority Constitution.
7. Overseeing the preparation for the smooth transition of all matters civic and ceremonial.
8. Taking all preparatory steps to support the returning officers for West Surrey / East Surrey Council in calling the first meeting of the shadow authorities.

In West Surrey and East Surrey, the councils in the area have established the voluntary joint committee in line with the governance arrangements set out in the SCO. As such, the voluntary joint committee will become the formal joint committee after the SCO comes into force. The terms of reference will remain the same for the formal joint committee but will have to be reapproved by that formal committee after the SCO comes into force. Where arrangements mirror the formal requirements, this will support the swifter development of new ways of working once the SCO comes into force.

It is for local determination who should sit on a voluntary joint committee. We would expect councillors to sit on this committee, but in some previous rounds of LGR, officers have also attended this informal group. In any case, areas will need to adhere to any requirements set out in the SCO for their area around joint committee membership, once the SCO comes into force.

In the past, existing councils and the voluntary joint committees have discussed and provided input into the content of the parliamentary SCO, including preparatory activity, governance arrangements and collaborative resourcing. This was the case for the voluntary joint committee of Bournemouth, Christchurch and Poole council during the reorganisation in Dorset in 2018. The meeting minutes of the BCP joint committee can be read online. For more information about preparing for an SCO, read this briefing by LGiU.

Some areas may choose to have a different kind of voluntary arrangement prior to the SCO coming into force.

Shadow authority model

A formal joint committee, made up of elected representatives from all relevant councils in an area, will prepare the grounds for the matters that need to be in place prior to the establishment of a shadow authority.  

In Cumbria for example, the formal joint committee was responsible for the following decisions, which had to be reviewed and approved by the shadow authority after its establishment:

1. Prepare and manage an implementation plan, including plans, timetables and budgets necessary for the transfer of functions to the new council on vesting day.
2. Establish the implementation team.
3. Prepare a code of conduct for the shadow authority.
4. Prepare executive arrangements.
5. Prepare a members’ allowances scheme.

Preparing council model

The implementation executive is established as a sub-committee of the preparing council’s executive and is responsible for transitional functions until the fourth day after elections to the preparing council (‘continuing authority’).

For example, the North Yorkshire terms of reference for the implementation executive established that the implementation executive would be specifically responsible for:

1. Appointing and providing a political steer to the officers’ implementation team.  
2. Collectively providing political oversight for the workstreams identified in the implementation plan.  
3. Receiving regular updates from the officers’ implementation team.  
4. Ensuring that there are robust plans for a smooth transition to new service delivery arrangements.  
5. Ensuring that there is adequate consultation across all eight councils.  
6. Preparing the implementation plan. 

Shadow authority model

The explanatory memorandum attached to the Cumbria SCO explains the function of the shadow authority as follows:

The main function of each shadow authority will be to make all necessary preparations in advance of [vesting day], including adopting governance arrangements, a code of conduct and scheme of members’ allowances, appointing statutory officers, keeping under review an implementation plan, and setting the budget and council tax for 2023/24 for the unitary councils.

Typically, the shadow authority should ensure that the following actions are completed in the below timelines:

As is usually stated in the SCO, with the exception of the functions that are typically reserved for the full shadow authority such as setting a budget or adopting a constitution, all other transitional functions conferred to the shadow authority by the SCO are delegated to the shadow executive.

The decisions taken by the shadow executive often include:

1. Reviewing, revising and agreeing the LGR implementation plan.
2. Agreeing a new council design, including access points to the council, council visual identity and branding, and office arrangements.
3. Broader financial strategy, including issuing of grants, agreeing pay terms and conditions, and setting good financial practice policies.
4. Disaggregating services and establishing shared service agreements.
5. Designing service delivery, including procurement and issuing new policies and strategies.
6. Developing emergency and risk plans.
7. Establishing neighbourhood governance arrangements and service devolution.
8. Making localised spending and planning decisions.
9. Approving district and county strategic plans.

Preparing council model

The explanatory memorandum attached to the North Yorkshire SCO explains that the main function of the preparing council (‘continuing authority’) is for,

facilitating the transition to the new single tier of local government including preparing for the transfer of the district councils’ functions, property, rights and liabilities.

It must ensure that the following functions are undertaken before vesting day:  

1. Prepare and facilitate the economic, effective, efficient, and timely transfer of the predecessor councils’ functions, property, rights, and liabilities to the new unitary authority.
2. Exercise all executive and non-executive functions of the existing continuing authority, as exist on the date that the SCO comes into force.
3. Prepare, review, and revise an implementation plan with the timetables, budgets, governance structures, and strategies necessary for the transfer on vesting day.
4. Regulate its own proceedings, deciding matters by a majority vote.

In addition to the functions held by the implementation executive prior to the elections, the preparing council and its executive usually gain the functions relating to setting up community governance reviews and electoral arrangements. In the North Yorkshire SCO, these functions are listed under Article 7.  

The preparing council must ensure that the following actions are undertaken before vesting day:

Note that unlike a shadow authority which must establish a new constitution and code of conduct for the shadow period, in past LGRs the existing policies of the preparing council were generally retained during the transition period. Typically, a section was added to the constitution outlining the responsibilities of the council for supervising the implementation of LGR, as set out in the SCO.  

The preparing council may delegate any of its functions to its executive committee, except those which legislation reserves to the full council.

Structural changes orders

Meetings of shadow authorities

Meetings of shadow executives  

Meetings of implementation executives

Further resources about transitional governance structures

See MHCLG’s explanation of the local government reorganisation progress and guidance about implementation bodies and SCOs.  

For more information about Structural Changes Orders see the following resources: