Board statement on Local Government Reorganisation review

Following the Government’s announcement of a review of the Local Government Reorganisation plans and its request that work on implementation decisions be paused, MHCLG have written to Administering Authorities confirming that the earlier timings set out in its 30 July guidance for funds considering changes to their Administering Authority will no longer apply. Any proposal to change which body would become the Administering Authority post-reorganisation should also be treated as on hold.

Although the timetable has been paused, the underlying considerations set out in the earlier guidance, remain relevant. The guidance emphasises the importance of carefully considering where the pensions function should sit, and for the first time it acknowledges that “there can be good strategic and practical reasons for creating an SPPA”. The Board supports proposals for SPPAs where they can be shown to provide effective governance and administration over the longer term. South Yorkshire Pension Authority and London Pensions Fund Authority demonstrate that the model can work in practice, and Surrey has now been given permission to establish an SPPA.

The Board will continue to press the Government for clarity on the implications of the wider LGR review for administering authorities, and for updated LGPS guidance to be issued promptly once the revised LGR timetable is known. It will also monitor developments and support funds in considering their longer-term governance and administrative arrangements, while recognising that formal decisions on any change of administering authority are currently on hold.