A planned merger that would see Lancaster City Council and Lancashire County Council scrapped has been withdrawn - said the Government - but not axed altogether.
The Government said today that its review into Local Government Reorganisation (LGR) - which was paused in Lancashire in September - will continue into early 2027 and all options remain on the table.
It was announced in July that the Government had confirmed its preferred option for LGR with the existing Lancaster City Council area joining forces with Preston and Ribble Valley.
This was part of plans to replace all 15 councils in Lancashire with four larger unitary councils by April 2028.
It was announced today that this original decision has been withdrawn.
But a government spokesperson said: "The Government remains committed to the reorganisation programme.
"Ministers will consider the best way forward for all remaining areas in the programme – 15 in total, including the nine areas which had reorganisation paused in September and which now have their decisions withdrawn (including Lancashire).
"Withdrawing these decisions does not mean reorganisation has been cancelled in these areas. All options and proposals remain under consideration in these areas and every area will have an outcome by early next year."
Local elections will go ahead in May 2027 on existing council boundaries, and new councils will be established for 2029, with elections to shadow councils in May 2028, said the Government.
Welcoming today's update, a Lancashire County Council spokesperson said today: "Lancashire's LGR Programme Delivery team has already reviewed implementation plans to prioritise the work that can be progressed while the Government concludes its review - work that is not dependent on a particular future council structure or implementation timetable.
"This work will continue to keep Lancashire in a good position to ensure that we are well prepared for the next stage of the programme when we have the outcome of the government's review."
A map of the originally proposed new unitary authority areas
Mark Wynn, the Senior Responsible Officer for LGR in Lancashire, said: "It's helpful to now have confirmation from Government of the timetable for its review of LGR in Lancashire.
"Since the review was announced, the Programme Delivery Office and councils across Lancashire have reviewed implementation plans to identify the activity that can continue while the review is undertaken.
"This includes work that is not dependent on a particular future council structure or implementation timetable, helping to ensure that progress continues while avoiding unnecessary expenditure or abortive work.
"By focusing on these priorities, Lancashire will remain in a strong position to respond quickly and effectively when the outcome of the government's review is known.
"We will continue to work collaboratively with councils, elected members, staff and partners to ensure that we are well prepared for the next stage of the programme."
But Councillor Caroline Jackson, leader of Lancaster City Council, said: "Having previously been told that Lancaster, Preston and Ribble Valley would form one of four new unitary councils in Lancashire, it is deeply frustrating and disappointing to see that decision withdrawn.
"The earliest that the government minister will make a new decision is December, so we face months of further uncertainty. It further delays a process which has already required a significant amount of effort and resource and is taking time from our local Lancaster district priorities.
“We strongly supported the Lancaster, Preston, Ribble Valley proposal because it reflected natural connections between our areas and struck the right balance between operating at sufficient scale while retaining a strong sense of local identity.
“We will, of course, engage constructively with the next stage of the process; the minister has made it clear that he wishes to hear from us during the review and after any future decision. We will continue to make the case for an outcome that works for the Lancaster district and our communities and welcome further input from our residents as to any key changes that might be made."
The plans for LGR had proven controversial, including sparking a row locally over what a new unitary authority should be named, with Lancaster City Council wanting it to be called 'Lancaster, Preston and Ribble Valley' - a wish echoed by Preston City Council and Ribble Valley Borough Council.
Prior to the review, current Lancashire councils were due to continue to operate until March 31 2028 when all of them – including Lancaster City Council and Lancashire County Council – would have been scrapped, under original proposals.
The plan was for the new unitary authorities across the county to provide all council services in their area, and for them to formally come into being on April 1 2028, existing in shadow form from May 2027.
This change was part of the Government’s plan set out in its 2024 White Paper to abolish two-tier (county and district) councils and replace them with unitary authorities to deliver all local services.
The Government said this was to devolve more powers to regions and streamline local governance by delivering all services in one place.
Currently Lancashire County Council provides services like social care, education, roads, and libraries; and District councils (e.g. Lancaster City Council) manage bin collections, planning, housing, and leisure.
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