Three Cambridgeshire council leaders have publicly backed Option B as the preferred model for reorganising local government in the county, arguing it offers the strongest financial case, better service delivery and a fairer balance between north and south Cambridgeshire.
In a joint statement issued by Cambridge City Council, South Cambridgeshire District Council and East Cambridgeshire District Council, the leaders set out why they believe Option B should be adopted ahead of rival proposals — just weeks before the Government is expected to launch a county-wide public consultation.
The move comes as Cambridgeshire faces one of the most significant changes to local governance in decades, with the potential abolition of the current two-tier council system.
What is happening to Cambridgeshire councils?
The proposals form part of the Government’s Local Government Reorganisation (LGR) programme, set out in the English Devolution White Paper published in December 2024.
In counties like Cambridgeshire, where responsibilities are currently split between county councils and district or city councils, ministers want to replace the system with fewer, larger unitary authorities. These councils would deliver all local services under one organisation — from social care and education to housing, planning, waste and highways.
Cambridgeshire currently has seven councils:
- Cambridgeshire County Council
- Peterborough City Council
- Cambridge City Council
- South Cambridgeshire District Council
- East Cambridgeshire District Council
- Fenland District Council
- Huntingdonshire District Council
By November 2025, councils were required to submit full reorganisation proposals to Government. A single county-wide agreement was not reached, resulting in four competing options being submitted.
What is Option B?
Option B, sometimes referred to as the north–south split, proposes the creation of two new unitary councils:
🔹 Greater Cambridge
Covering Cambridge City and South Cambridgeshire
🔹 North Cambridgeshire and Peterborough
Covering East Cambridgeshire, Fenland, Huntingdonshire and Peterborough
Supporters argue this model reflects existing economic geographies while avoiding the creation of one dominant authority.
According to the councils backing the proposal, both new unitaries would be financially sustainable, with projected savings of up to £43 million per year, which they say would be reinvested into front-line services.
“A once in a lifetime opportunity”
Cllr Cameron Holloway, Leader of Cambridge City Council, said Option B would allow councils to be redesigned around residents rather than bureaucracy.
“Option B makes the most of a once in a lifetime opportunity to revolutionise services you rely on — from social care to bin collections,” he said.
“Both councils will have similar sized economies, each with different strengths vital to the nation — supporting a shared prosperity, rather than one area running ahead while the other struggles.”
He added that the aim was to create modern, responsive authorities.
“We’re committed to working closely with residents, businesses, volunteers and public sector colleagues to design councils fit for the future — not faceless bureaucracies.”
Financial savings and service delivery
A central argument for Option B is its financial case.
The councils say independent modelling shows it would deliver greater long-term savings than any other locally developed proposal in Cambridgeshire. Savings would come from:
- Removing duplication across seven councils
- Streamlining management and governance
- Integrated commissioning of services
- Shared IT, procurement and back-office functions
Cllr Anna Bailey, Leader of East Cambridgeshire District Council, stressed the cross-party support behind the plan.
“Three local councils run by three different political parties all think option B is best,” she said.
“It creates two strong, financially secure councils, saving up to £43 million every year, to reinvest into your community’s services, such as social care where demand is high.”
She added that residents would benefit from simpler local government.
“You’ll deal with one council for everything — from planning to potholes to public health.”
Economic balance between north and south
Supporters of Option B argue that it avoids a long-term north–south imbalance by creating two economically comparable councils with different strengths.
Greater Cambridge would centre on the internationally significant science, technology and biomedical economy, anchored by the University of Cambridge, the Biomedical Campus and major global employers.
The North Cambridgeshire and Peterborough authority would combine urban Peterborough with extensive rural and agricultural areas, manufacturing, logistics and market towns — described by backers as an industrial and agricultural powerhouse.
The councils also argue that a smaller Greater Cambridge authority would be better placed to work closely with key institutions such as Cambridge University Hospitals and the University of Cambridge, particularly on health and innovation.
Existing partnerships cited
The three councils say Option B builds on existing joint working, particularly between Cambridge City and South Cambridgeshire, which already share services including planning and waste and are jointly developing the Greater Cambridge Local Plan.
Together, the two councils also manage around 13,000 council homes, while none of the northern councils hold council housing stock — a difference supporters say strengthens the logic of the split.
For rural communities in the north, the councils say the new authority would be structured to recognise local differences, allowing services to be tailored rather than centrally imposed.
Other options still on the table
Option B is not the only proposal being considered.
- Option A, led by Cambridgeshire County Council, proposes a different two-unitary split with more evenly balanced populations.
- Option D, backed by Peterborough City Council, focuses on a Greater Peterborough model.
- Option E, promoted by Huntingdonshire District Council, explores a three-unitary solution.
The competing submissions highlight divisions over scale, identity, financial risk and democratic accountability.
What happens next?
The Government is expected to launch a public consultation in February 2026, allowing residents, businesses and organisations to comment on all four proposals.
Ministers will then decide which option to implement. If approved:
- New unitary councils would operate in shadow form from May 2027
- Full powers would transfer by April 2028
Town and parish councils would remain unchanged.
Cllr Bridget Smith, Leader of South Cambridgeshire District Council, said the decision would shape the county for decades.
“This is a once in a generation opportunity to be ambitious, creating stronger public services for Cambridgeshire and Peterborough,” she said.
“We’d create councils the right size to thrive — local enough to care.”
