A controversial overhaul of Devon’s councils has been withdrawn by the government as part of a widespread rethink by ministers.

A decision to split Devon into four new, larger, unitary-style councils compared to its existing 11 local authorities had already been paused, but will now be reconsidered.

Addressing Parliament, minister Jim McMahon said Devon would be among nine areas of England where “more time” was needed, and that the government would “use the coming months to further consider proposals”.

He stated the move was “not a reflection on the work underpinning the proposals”, adding that “all options remain under consideration”, and that it “should not be assumed the same proposal will automatically be selected”.

No specific dates were given for when decisions for individual areas would be made, however, Mr McMahon hoped some updates would be made by Christmas or early next year.

Councils had spent months preparing for the changes since the idea of local government reorganisation (LGR) was first aired in late 2024 by Westminster, with scant council resources and finances diverted towards the proposed overhaul.

It’s understood that Devon County Council alone spent in the region of £2 million on a process that now won’t occur within the initial intended timetable.

Mr McMahon said he understood councils had “incurred costs in good faith”, and that they would receive half of previously announced transition funding in the coming weeks. This would equate to £450,000 per unitary council previously announced.

The county council has also been preparing to launch a judicial review against the government’s decision for Devon, however, the withdrawal of the reorganisation plan that the county council was opposing may lead to a reassessment of this.

The proposal that had been selected from the various ones put forward would have seen an expanded Plymouth, an enlarged Torbay, and an amplified Exeter, leaving a huge swathe of rural and coastal communities banded together as a fourth unitary council.

Exeter would have subsumed 15 parishes from Teignbridge District Council, 28 from East Devon District Council and six from Mid Devon District Council, while Plymouth would have taken in 13 parishes from the South Hams, and Torbay would have sucked in 22 parishes collectively from both Teignbridge and the South Hams.

Critics of the large ‘Devon’ council, which would have stretched around 110 miles from the furthest southern reaches of the South Hams to the most northerly point in North Devon, feared that it would have left the bulk of the county’s residents living in a financially challenged council with no economic hub. 

The proponents of the mooted reorganisation – Plymouth and Exeter – claimed the changes would have enabled the respective cities to achieve the economic growth they are being held back from achieving.

Devon was confirmed as an area set to be allowed to elect a mayor at this week’s Budget, but Mr McMahon stressed that unitary councils underneath mayors was the preferred structure the government was aiming for as part of its efforts to “rewire” the state.

Devon already has a combined county authority (CCA), which is a quasi-mayoral entity but which has not included Plymouth and specifically does not include a mayor.

Now, a mayor looks set to be in place by 2028 to oversee more strategic investment across the entire county, likely focusing on areas such as transport, housing and infrastructure.

It’s expected the CCA will cease and be replaced by a mayoral strategic authority (MSA). This new authority could be in place around a year before a mayor is actually elected, with that position potentially filled in 2028.

This means 2028 could be a busy year, as Mr McMahon said elections for prospective new local councils would go ahead in May 2028, with the creation of new councils happening in May 2029.

Mr McMahon said there would be a three-week period for people to make representations, and that the government would make so-called ‘minded to’ decisions, which could allow for tweaks to the government’s chosen option.