According to the GOV.UK letter published on 16 July 2026, the Secretary of State, Steve Reed, has told council leaders in West Sussex that no proposal has yet been chosen for local government reorganisation. The department says additional representations submitted after the close of the further consultation, together with updated financial information, need more scrutiny before any decision is taken. (gov.uk) This does not end the process. The same letter says government remains committed to reorganisation in West Sussex and still intends to replace the current two-tier pattern with unitary councils, but the structural choice is now deferred while officials review the new material. (assets.publishing.service.gov.uk)
The latest letter sits at the end of a longer statutory process. Under Part 1 of the Local Government and Public Involvement in Health Act 2007, councils were invited on 5 February 2025 to submit proposals for unitary local government across the whole of West Sussex. Two proposals were then submitted on 26 September 2025: West Sussex County Council proposed a single countywide unitary, while Adur, Arun, Chichester, Crawley, Horsham, Mid Sussex and Worthing proposed two new councils. A formal consultation on the West Sussex options ran from 19 November 2025 to 11 January 2026. (gov.uk) The original two-unitary district and borough proposal grouped Adur, Arun, Chichester and Worthing in one authority, with Crawley, Horsham and Mid Sussex in the other. That is the model ministers later returned to when considering whether a modified version might better meet the statutory tests. (gov.uk)
In his 25 March update, Reed said he could not yet choose any proposal for West Sussex. The letter recorded concern that the options needed to reflect distinct communities and identities in the area, while also fitting the area’s devolution arrangements. It noted consultation feedback that the original two-unitary split risked weakening the rural identity and economic profile of places such as Chichester by grouping them with coastal districts. It also recorded support from Adur and Worthing for the idea of a coastal unitary, and representations from other government departments arguing that Chichester was a better fit with Horsham in terms of needs and demographics. (assets.publishing.service.gov.uk) Those concerns led to a further consultation launched on 12 May 2026. The potential modification kept a two-unitary structure but moved Chichester from the coastal authority to the inland one, producing a coastal unitary of Arun, Adur and Worthing, and a second unitary of Crawley, Chichester, Horsham and Mid Sussex. Ministers were explicit that all proposals remained under consideration and that no final choice had yet been made. (assets.publishing.service.gov.uk)
The government’s own consultation papers show what ministers are testing. The statutory criteria cover sensible geographies and economic areas, the ability to deliver the promised outcomes, population size and financial resilience, service sustainability, local identity, compatibility with devolution arrangements and the scope for stronger community engagement. As a guide rather than an absolute rule, new councils are expected to aim for populations of 500,000 or more. (gov.uk) That benchmark helps explain why West Sussex remains unresolved. The modified coastal unitary would cover about 349,000 residents, while the inland authority would cover about 566,000. Ministers therefore have to weigh community fit against scale, resilience and the practical risks of transition. The population figures are from MHCLG’s published consultation material; the final sentence is an inference from the department’s stated criteria and the option now under review. (assets.publishing.service.gov.uk)
The 16 July letter sets a new outer limit for a decision. The Secretary of State says he aims to decide in October 2026 at the latest which option, if any, to implement, and whether to do so with or without modification. The consultation documents add that any implementation remains subject to Parliamentary approval. (assets.publishing.service.gov.uk) If ministers do proceed, the timetable has not been rewritten. Elections to the new councils are still intended for May 2027, with the new authorities taking on full functions from April 2028 after a transition year. The department also says the West Sussex delay will not affect wider devolution plans for the area. (assets.publishing.service.gov.uk)
For residents, the immediate effect is procedural rather than operational. In practice, the existing county, district and borough councils remain responsible for services while MHCLG completes its assessment and ministers reach a final view on structure. The central issue is no longer whether reorganisation is still being pursued, but which map will be judged strong enough on finance, service delivery and local identity to pass the government’s tests. This is an inference drawn from the published timetable, the absence of any final decision, and the government’s repeated statement that it remains committed to reorganisation. (assets.publishing.service.gov.uk) The 16 July letter also shows where the department sees delivery risk. Government says £63 million in national capacity funding has already been announced for reorganisation areas, alongside £900,000 in transition support for each new unitary, up to £150,000 per new unitary for leadership continuity in children’s services, adult social care and public health, and additional funding for a small number of complex fire and rescue transitions. That emphasis on service leadership points to a familiar policy concern: structure can change quickly on paper, but service continuity depends on management capacity during the handover. The final sentence is an inference based on the support package set out in the letter. (assets.publishing.service.gov.uk)