A collective of 12 councils has unveiled their case for the major shake-up of local authorities in the region.

The proposal to government would see the 14 mainland authorities in Hampshire merged to form four larger entities, with the Isle of Wight retaining its standalone council.

While the Ministry of Housing, Communities and Local Government will have the final say on the outcome of local government reorganisation (LGR), existing councils have been asked to submit their preference for how the new authorities should be shaped.

This comes as part of a national programme by the Labour government to replace the current mixed two-tier system with unitary authorities delivering all council services.

The proposal announced today, titled ‘Close enough to be local, big enough to stay strong’, comes from joint work by Basingstoke and Deane Borough Council, Eastleigh Borough Council, Fareham Borough Council, Hart District Council, Havant Borough Council, Isle of Wight Council, New Forest District Council, Portsmouth City Council, Rushmoor Borough Council, Southampton City Council, Test Valley Borough Council and Winchester City Council.

These councils are putting forward three different options for the four new unitary councils for mainland Hampshire, with each authority area arranged around the hubs of Basingstoke, Portsmouth, Southampton and Winchester.

One of these configurations involves splitting sections of existing councils namely New Forest, Test Valley, East Hampshire and Winchester, between two of the new authorities.

The three options put forward are as follows:

North Hampshire: Basingstoke and Deane, Hart, Rushmoor. Mid Hampshire: East Hampshire, New Forest, Test Valley, Winchester. South West Hampshire: Eastleigh and Southampton. South East Hampshire: Fareham, Gosport, Havant, Portsmouth.

North Hampshire: Basingstoke and Deane, Hart, Rushmoor. Mid Hampshire: East Hampshire, Test Valley, Winchester. South West Hampshire: Eastleigh, New Forest, Southampton. South East Hampshire: Fareham, Gosport, Havant, Portsmouth.

North Hampshire: Basingstoke and Deane, Hart, Rushmoor. Mid Hampshire: Most of East Hampshire, New Forest, Test Valley and Winchester. South West Hampshire: Eastleigh, Southampton, Totton and Eling, Marchwood, Hythe and Dibden, and Fawley sections of New Forest, and Valley Park, Nursling and Rownhams, and Chilworth sections of Test Valley. South East Hampshire: Fareham, Gosport, Havant, Portsmouth, Clanfield, Horndean and Rowlands Castle sections of East Hampshire, and Newlands section of Winchester.

Each of the 12 councils will put its name to one of the three options. This is set to be considered alongside formally backing the overall proposal document at respective council meetings in advance of the government submission deadline of Friday, September 26.

In a joint statement, the 12 local authorities said: “Unlike other proposals, we believe our approach means the best of both worlds: councils that are big enough to deliver major services and be financially sustainable, but local enough to understand communities so they can tailor services more closely to their needs.

“This is a comprehensive and evidence-based proposal that offers a bold vision for the future of local government in our region, ensuring every voice is heard and every service delivers real value.

“Covering the population of around two million people in mainland Hampshire, four new unitary councils would provide the scale of efficiency the government wants whilst still being connected to the communities they serve.

“The Isle of Wight’s continued independence is essential, given its unique geography and infrastructure needs. However, the proposal ensures integration and collaboration where beneficial, enabling shared innovation and transformation across the region.”

Their 208-page proposal document states at least £63.9million of annual net recurring savings would be delivered, with the options reaching a breakeven point even between 2.2 and 3.1 years.

However, the current forecasted gross budget gap totalling £178 million for all existing councils by 2028/29 was not included in the breakeven analysis.

The cost of reorganisation is likely to be covered through a mixture of reserves and capital receipts, the proposal document says.

An indicative assessment on councillor numbers could see the current number of 650 drop to around 390 following the mergers.

Hampshire County Council and East Hampshire District Council have stated their preference is for three mainland unitary authorities and the Isle of Wight remaining a standalone council.

Gosport Borough Council has stated its opposition to LGR and not taken part in any collaborative working following an initial joint submission by all 15 local authorities to government in March.