The Communities Secretary has explained his decision on merging councils in Hampshire, saying the move is designed to boost regional growth.

In a letter to councils, Steve Reed said the proposed five-unitary model would create a simpler system, with the two cities placed at the centre of future economic planning.

Writing to council leaders, he said: “I appreciate this decision will be disappointing for some. But this option best meets the criteria overall.

“I judge that the five-unitary proposal provides a balanced and robust foundation.

“It positions the councils centred on Southampton and Portsmouth as key drivers of sustained regional economic growth.”

He added the plans would create a “coherent balance” between urban, rural and coastal communities.

“I judged that the boundary changes, which seek to expand the local authorities covering Portsmouth and Southampton, were sensible.”

Under the plans, existing councils will be abolished and replaced with four new unitary authorities covering North Hampshire, Mid Hampshire, South East Hampshire, and South West Hampshire. The Isle of Wight Council will remain unchanged.

The new councils will take over major services including social care, education, waste and public health.

Mr Reed said the reforms would make it easier to plan housing, infrastructure and services around Southampton and Portsmouth.

Ministers say strengthening the two cities’ wider areas will help unlock growth and better reflect how people live and work across the region.

He also said the shake-up would support devolution, arguing that simpler structures would provide a stronger foundation for a mayoral strategic authority.

He said: “This proposal provides a balanced and robust foundation for Mayoral Strategic Authority arrangements, positioning the councils centred on Southampton and Portsmouth as two key drivers that will help the Authority deliver sustained regional economic growth.”

His letter added: ” I believe this proposal provides a coherent balance across the region between the distinct urban, rural, and coastal communities and identities.

“I judged that the boundary changes, which seek to expand the local authorities covering Portsmouth and Southampton, were sensible.

“I judged that these new councils would create a sensible and credible geographic footprint for planning housing and infrastructure to support housing supply and meet local needs, and in turn support economic growth in these cities.

“This is of importance to the region given Southampton’s role as a key economic centre and Portsmouth’s high population density, which together reinforce the need for councils with the right geographies to plan for local housing needs, infrastructure, and growth effectively.”

Funding and next steps

Each new council will receive at least £900,000 in transition funding, with £3.6m allocated across Hampshire, Portsmouth and Southampton.

The plans now need parliamentary approval. Further details on timing will be sent out to councils in the coming weeks.