Tonight, Peterborough City Council will meet to consider the future shape of local government across Cambridgeshire and Peterborough, as part of a region-wide reorganisation prompted by the Government’s English Devolution White Paper and the Community Empowerment Bill.
The aim is to replace the current two-tier system with unitary authorities by April 2028, streamlining council structures and extending devolution.
Rina Mistry, head of performance and intelligence, is recommending to the joint scrutiny committee that it:
- Reviews the summary and comparative assessment of each Local Government Reorganisation (LGR) option, taking into account the strengths and opportunities presented by each model.
- Recommends to council and subsequently Cabinet a preferred option, “supported by rationale, to ensure the region’s submission is robust, evidence-based, and aligned with both local priorities and national policy objectives”.
She said the five options are “underpinned by a strong commitment to collaboration and rigorous evidence-gathering across all councils in the region.
“All seven councils—Peterborough City Council, Cambridgeshire County Council, and the five district councils—worked together to build a shared evidence base, drawing on local knowledge, operational experience, and robust data.”
She added that a “collaborative and methodical approach ensured that the five options presented are credible, future-ready, and tailored to the unique needs and ambitions of Cambridgeshire and Peterborough”.
Five options on the table
- Option A: North/South Split (Two Unitaries)
- Divides the region into a northern authority (Peterborough, Fenland, Huntingdonshire) and a southern authority (Cambridge, South Cambridgeshire, East Cambridgeshire).
- Aligns with economic areas and NHS boundaries, supporting integrated services and financial resilience.
- Risks include potential dilution of local identity, especially in rural communities, and concerns about representation.
- Option B: Horseshoe (Two Unitaries)
- Northern authority: Peterborough, Fenland, East Cambridgeshire, Huntingdonshire; Southern authority: Cambridge and South Cambridgeshire.
- Offers scale for strategic investment but creates population and resource imbalances, with the southern authority falling below preferred government size.
- Option C: East/West Split (Two Unitaries)
- Eastern authority: Peterborough, Fenland, East Cambridgeshire; Western authority: Cambridge City, South Cambridgeshire, Huntingdonshire.
- Achieves population balance but faces challenges with deprivation and weak local identity in the east, and misaligned boundaries with NHS and police.
- Option D: Three Unitary Authorities
- Greater Peterborough (Peterborough City and West Huntingdonshire), Mid Cambridgeshire (East Cambridgeshire, Fenland, East Huntingdonshire), Greater Cambridge (Cambridge City and South Cambridgeshire).
- Emphasises local identity and tailored service delivery, but faces higher transition costs, financial sustainability concerns, and risks of service fragmentation.
- Option E: Huntingdonshire Three Unitary Authorities
- Standalone authority for Huntingdonshire, plus two others: Peterborough, Fenland, East Cambridgeshire; Cambridge City and South Cambridgeshire.
- Supports Huntingdonshire’s distinct identity and strategic growth but raises financial resilience concerns and risks of service fragmentation.
Financial and Community Impacts
The two-unitary models promise greater financial efficiencies, with estimated annual savings of £12.1m and a six-year payback period.
The three-unitary models, while offering stronger local leadership, come with higher costs (£41m implementation) and a much longer payback period (over 50 years). All options require significant investment for transition, including legal, ICT, and staffing costs, which must be funded locally.
Community engagement has been extensive, with over 2,400 residents and 767 staff participating in surveys, and a social media campaign reaching 900,000 people. Key concerns include trust, local identity, council complexity, and representation. Residents are broadly supportive of reform but want assurances that changes will improve services.
At present, Cambridgeshire and Peterborough operate within a mixed system: Peterborough is already a unitary authority, whereas the remainder of Cambridgeshire is managed by a two-tier system—
Cambridgeshire County Council alongside five district councils.
The Government seeks to abolish these two-tier arrangements, replacing them with unitary councils. Where existing unitary areas are deemed too small, these too are included in the reorganisation
What Happens Next?
Scrutiny committee members will review the evidence and indicate their preferred option for Cabinet consideration. The chosen proposal will then be submitted to the Secretary of State by 28 November 2025. The decision will shape the future of local government in the region, balancing efficiency, financial sustainability, and community empowerment.
Once submitted, proposals will be reviewed by the Secretary of State. Implementation is subject to consultation—typically involving the public and other councils—though not every proposal will necessarily be consulted on.
Following consultation, the Secretary of State may choose to implement a proposal, with or without changes, via a legal instrument known as a ‘structural change order’.
This sets out the implementation timeline and interim governance arrangements. Interim arrangements usually include the formation of ‘shadow councils’ approximately one year before the new structure goes live.
Elections are held for these councils, and elected members spend the shadow year preparing to assume the functions and assets of the outgoing authorities. It’s common for members to serve concurrently on both the existing and shadow councils.
During this transition period, shadow councils typically have powers to restrict certain decisions by the outgoing councils, particularly: • capital spending above a defined threshold, and • contracts exceeding a set value that extend beyond the go-live date or are capable of extension.
