The Ministry of Housing, Communities and Local Government (MHCLG) has announced the launch of statutory consultations on proposals for unitary local government in six areas, following a written ministerial statement to Parliament on 19 November 2025. The consultations cover East Sussex and Brighton and Hove, West Sussex, Essex with Southend-on-Sea and Thurrock, Hampshire with Isle of Wight, Portsmouth and Southampton, and Norfolk and Suffolk. This follows the government's decision on 28 October 2025 to implement two unitary councils in Surrey. The consultations represent the latest phase in the government's programme to end the two-tier local government system affecting approximately 20 million people across England. Final proposals for local government reorganisation in these areas were submitted by councils on 26 September 2025. The government has allocated £7.6m in Local Government Reorganisation Proposal Development Contributions across 21 invited areas to support the transition from the current system where services are split between county and district councils to new single-tier unitary councils.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a technical consultation on proposed regulations to modernise the Local Government Pension Scheme (LGPS) in England and Wales. The consultation seeks views on two draft statutory instruments (SIs) intended to implement policy proposals outlined in the government’s earlier Fit for the Future consultation. It closes on 2 January 2026.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched the National Housing Bank (NHB), a publicly owned subsidiary of Homes England. Supported by £16bn in new public investment and £6bn in existing funding to be allocated over the course of this Parliament, the NHB is designated as a Public Financial Institution. It aims to leverage a further £53bn in private investment to support the delivery of over 500,000 new homes. The NHB is expected to generate long-term returns for government in line with the 2025 Financial Transaction Control Framework. It will facilitate the development of a wide range of sites—including larger projects that often face challenges in securing up front lending due to their inherent risk and complexity—by deploying a combination of equity investments, loans and guarantees to leverage global institutional capital into UK housing. The NHB will also provide a wider range of financial products, including debt, equity and guarantee products to help SMEs accelerate housebuilding and expand their businesses. Additionally, it will assist developers in unlocking large, complex sites through infrastructure finance. A wider programme of investment, including £5bn in grant funding for infrastructure and land through the new National Housing Delivery Fund, will complement capital investment from the NHB.

The Ministry of Housing, Communities and Local Government (MHCLG) has made minor amendments to the National Planning Policy Framework (NPPF). These changes correct cross-references in footnotes 7 and 8 and clarify the intent of the first sentence of paragraph 155. The MHCLG emphasises that the amendment to paragraph 155 does not constitute a policy change from the version published on 12 December 2024.

During a Housing, Communities and Local Government Committee evidence session on 9 June 2026 examining the work of the Ministry of Housing, Communities and Local Government (MHCLG), Minister for Local Government and Homelessness, Alison McGovern, discussed the government's approach to local government reorganisation (LGR), including support for areas moving to unitary authorities. Responding to MPs' concerns about potential impacts on children's services and support for vulnerable residents, McGovern said reorganisation and disaggregation involve risks that require management and highlighted coordination between MHCLG and the Department for Education (DfE). McGovern also defended the government's decision to break up some borough and district councils as part of its wider devolution programme.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a consultation on the future funding arrangements for the Homelessness Prevention Grant (HPG) from 2026/27 onwards. The HPG is provided to all local authorities in England to support their statutory obligations and implement local homelessness and rough sleeping strategies. This consultation seeks views on the grant and the formula used to calculate funding needs, with a focus on refining measures and metrics to ensure accurate assessment of current and relative pressures. The MHCLG has published illustrative allocations to aid consideration of proposed changes, though these are subject to adjustment and should not be regarded as definitive future allocations.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a 12-week consultation on reforms to the Local Government Pension Scheme (LGPS) in England and Wales. The proposals aim to make all maternity, shared parental and adoption leave automatically pensionable, address disparities in survivor benefits between same-sex and opposite-sex partnerships and remove the current age-75 cap for survivor lump sum payments. The consultation, which closes on 7 August 2025, includes a draft of the Local Government Pension Scheme (Miscellaneous Amendments) Regulations 2025.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a consultation on the provisional local government finance settlement for 2026–27. The settlement provides £78bn for councils' essential services and marks the first multi-year funding arrangement in over a decade, offering three years of financial certainty through to 2028–29. Councils will benefit from a 23% increase in core spending power compared to 2024–25, with funds directed toward services such as bin collections, housing, children's services, libraries, youth services, clean streets, and community hubs. The consultation will close on 14 January 2026.

The Ministry of Housing, Communities and Local Government (MHCLG) has written to the Leaders Elect of East and West Surrey to congratulate them and set out expectations for the transition to new unitary councils by 1 April 2027. The  Minister of State for Local Government and Homelessness, Alison McGovern MP, stated that the reorganisation is intended to deliver stronger local government, improved public services and support for economic growth, and noted that while significant preparatory work has been completed, substantial further work is required. The Minister emphasised the need for timely decision-making, effective leadership, early recruitment of senior officers, and continued cooperation between councils to ensure a safe, lawful and efficient transition, including the fair allocation of resources and maintenance of service standards. She also outlined planned government measures and policy developments, including proposals for a Surrey-wide strategic authority, a combined fire and rescue service, consideration of pension arrangements, and financial support for West Surrey, particularly to address Woking Borough Council’s debt.

The Ministry of Housing, Communities and Local Government (MHCLG) has outlined how the 2025 Budget will impact the sector, emphasising prospects for new homes, strengthened powers for mayors and planners, and regional investment. The MHCLG notes that the Budget centres on making fair decisions to deliver the UK’s priorities of easing the cost of living, reducing NHS waiting lists and bringing down borrowing and debt. It also proposes giving mayors new powers to invest in transport, infrastructure, and the visitor economy through a levy on overnight stays, with a consultation on this development now under way. In addition, £13bn has been allocated to seven of the most advanced Mayoral Strategic Authorities.

The Ministry of Housing, Communities and Local Government (MHCLG) has published its implementation plan outlining how it intends to deliver the reforms introduced by the Planning and Infrastructure Act 2025 (PIA 2025). The plan sets out: the government’s target timeline for implementing the PIA 2025 measures; how it intends to deliver the policies contained in the PIA 2025; and how applicants and other stakeholders will be able to use these measures once in force. MHCLG explains that implementation has begun with the introduction of a requirement for National Policy Statements (NPSs) to be reviewed and updated every five years. It also intends to publish updated guidance for government departments and applicants on the process for reviewing and updating NPSs in the near future.

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a consultation on proposed improvements to the Local Government Pension Scheme (LGPS) in England and Wales across 4 key policy areas. Building on the May 2025 consultation on enhancing member benefits, the new proposals include increasing the normal minimum pension age to 57 following the changes in the Finance Act 2022, with protections for members with pre–4 November 2021 membership and implementing new Fair Deal protections ensuring workers outsourced from local government keep seamless access to the LGPS. The consultation also proposes restoring access to the scheme for councillors in England and extending it to mayors—bringing England into alignment with Scotland, Northern Ireland and Wales. Further proposals include recognising the geographical spread of schools across Multi-Academy Trusts and simplifying the process for applying for a direction to consolidate staff into a single LGPS fund. The consultation closes on 22 December 2025.