EY: Independent Analysis of Governance Scenarios and Public Service Reform

This report from EY assesses governance reform options for England’s two‑tier county areas. It evaluates six reorganisation scenarios against financial sustainability, service impacts, practicality of implementation and alignment with wider public service reform. The report analysed a host of different scenarios: Creating 27 single county unitary authorities could save £2.9bn nationwide, on average up to £106million per county. This approach could save 68% more to the other scenario to create two unitary authorities per county, which would create 54 new councils across the country. A third scenario of abolishing county and district authorities and creating three unitaries per county, creating 81 new councils countrywide, could result in a net cost to the taxpayer. Another option analysed, to retain and reform the current two-tier system, through ‘merged districts’ was found to be more cost effective than creating three unitaries per county. Recommendations in the report include: Prioritise single‑tier unitaries where reform is pursued, as it offers the strongest platform for sustainability and service integration. Focus on redesign, not just reorganisation: reshape management structures, service delivery, contracts, assets and digital channels. Protect and integrate care and education services, reinvesting savings into frontline delivery. Strengthen locality and community governance to mitigate reduced political representation. Undertake detailed local analysis before implementation to refine costs, savings and risks.