Leicestershire could lose its district and borough councils under new Government plans to overhaul England's democratic set-up.

The county is currently governed by a county council and seven district and borough councils, which share decision-making powers between them.

Ashby de la Zouch and Measham come under the North West Leicestershire District Council authority.

However, the Labour Government set out plans yesterday (Monday, December 16) which could see those democratic institutions massively shaken up.

Heralded by deputy prime minister Angela Rayner as the "greatest transfer of power from Whitehall to our communities in a generation", the English Devolution White Paper includes a proposal to merge councils in areas such as Leicestershire, where there are two tiers of authority, into a single organisation. This would "streamline" processes and save money, Ms Rayner said.

Leicester is governed by one tier of authority – known as a unitary authority – which makes all of the political decisions within the borders of the city. Therefore, it is not facing the same situation as the county.

Currently, the different councils in Leicestershire have different responsibilities. For Leicestershire County Council, these include powers over highways, education, public health and planning decisions for major infrastructure projects such as new schools or quarries.

Meanwhile, the districts and boroughs take care of duties such as bin collections, local planning decisions, including new housing, and parks.

The Government has said it "will expect all two-tier areas" to develop proposals for their mergers, adding it would deliver the reorganisation "as quickly as possible".

Where needed, the Government said, it would use "legislation" to ensure progress was made.

Removing districts and boroughs would cut "wasteful duplication" of services, reduce the number of politicians needed in an area and provide residents with a "clearer picture" of who to hold accountable locally, the Government said.

However, concerns have been raised that the proposals would make services more remote for local communities.

Conservative MP for Harborough, Oadby and Wigston Neil O'Brien labelled the plans "undemocratic".

He said: "The Government wants to abolish local district and borough councils altogether and create remote super councils. People will end up having to drive for an hour to visit their remote super council.

"This is neither local nor democracy. It will make government feel even more remote."

Also proposed in the White Paper is the creation of "strategic authorities". Similar to the combined authorities proposed under the last Conservative Government, strategic authorities would be larger than individual councils, would cover a wider geographical area and would have more decision making powers than individual councils.

In February 2022, Leicestershire was among the first local authority areas to have been offered the opportunity to strike a so-called County Deal by the last Government.

This would have given greater decision-making power placed in the hands of local leader, and if a deal had been struck, it was expected to be backed by around £1 billion in additional funding for the area.

However, negotiations hit a snag when it came to light that the highest level of funding could only be unlocked if Leicestershire county joined with the city and Rutland as a combined authority – and if the three areas accepted one mayor be elected for all of them.

City mayor Sir Peter Soulsby faced backlash from some in the county after he refused to agree to this. He also at the time branded the £1 billion figure expected to be received through a local deal as "pure illusion", saying the Government "hasn't promised a single penny".

He also questioned the value of having another tier of local government created. He said: "There is much scepticism about the costs of having yet another tier – elected over the top of the district councils and the county council – who already work very well together and with the city." No County Deal involving Leicester, Leicestershire nor Rutland was struck.

As with the Conservatives' County Deal, the Labour Government's new plans also set out a preference for a mayor to lead any strategic authority areas. In fact, the proposals seek to make having a mayor in place the "default status for regions across England".

In areas where a mayoral system is accepted, the White Paper suggests, more funding would again be made available compared to those areas which do not have one. Mayors would also be offered heightened powers, including over planning decisions, local transport systems, and skills and education.

Sir Peter told the LDRS that his first step following the publication of the White Paper would be to talk with both the districts and boroughs and two county councils about how they might "shape something that suits" Leicester, Leicestershire and Rutland.

He added that he had "no difficulty at all" if those discussions ended with a wider mayoral authority under the Labour Government plans, because this time he felt there was "genuine devolution" on offer.

A spokeswoman for Leicestershire County Council told the LDRS the authority was working to "digest" the White Paper and what it meant locally. She added: "In 2019, the county council produced an independently verified business case which showed that having a single council for Leicestershire would save £30m per year, which can be refreshed. We have taken note of the Government's priorities to simplify structures, improve service delivery and make maximum financial savings from reorganisation."

Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner said: "Devolution is about delivering fundamental change at every level. It's about giving local leaders the tools – and the trust – they need to forge their areas' futures.

"It's about raising living standards, improving public services and building the homes we so desperately need – all key aspects of our Plan for Change. It cuts across every aspect of government.

"We have an economy that hoards potential and a politics that hoards power. So our devolution revolution will deliver the greatest transfer of power from Whitehall to our communities in a generation, empowering those communities to realise their potential. And nobody is more excited about it than I am."