The Chichester District Council Cabinet met to discuss and approve the submission of the 'Shaping West Sussex' business case to the government, regarding the Local Government Reorganisation (LGR) in West Sussex. The Cabinet agreed to recommend that the Leader of the Council writes to the Secretary of State for Housing, Communities and Local Government, to show its support for option B2 in the business case. Authority was delegated to the Chief Executive, in consultation with the Leader of the Council, to make any minor non-material corrections to the Business Case.

Local Government Reorganisation

The Cabinet approved the submission of the 'Shaping West Sussex' business case to the government. They also agreed to recommend that the Leader of the Council writes to the Secretary of State for Housing, Communities and Local Government, to show its support for option B2 in the business case. Option B2 proposes the creation of two unitary authorities:

• Unitary 1: Adur, Arun, Chichester, and Worthing
• Unitary 2: Crawley, Horsham, and Mid Sussex

The report explained the collaborative effort across West Sussex councils to develop options for reorganisation that meet the government's criteria, with a final decision expected in Spring 2026 and new council elections in May 2027, ahead of Vesting Day¹ on 1 April 2028.

The government's six criteria for assessing the reorganisation proposals were:

1. Establishing a single tier of local government.
2. Ensuring the right size for efficiency, capacity, and financial stability.
3. Prioritising high-quality and sustainable public services.
4. Demonstrating collaboration and local engagement.
5. Supporting devolution arrangements.
6. Enabling stronger community engagement and neighbourhood empowerment.

A long list of 16 options was considered, which was then narrowed down to a shortlist of five. Options C and D failed the viability test due to financial imbalances. The remaining options (A, B1, and B2) were then subject to a full business case options appraisal.

The business case evaluation concluded that no option was a conclusive winner, and that both Option A (single county unitary) and Option B1/B2 met the government's criteria to a comparable degree.

The report stated that the recommended approach was to support Option B2 because:

• It delivers the most natural community and economic geographies.
• It balances population sizes.
• It aligns the strategic infrastructure corridors and service demand profiles.
• It acknowledges the two distinct economic corridors, allowing each unitary to pursue targeted investment in its specific high-growth sectors:
  • Unitary 1: a coastal/downs economic zone links the communities of Chichester, Arun, Worthing, and Adur along the A27 corridor.
  • Unitary 2: a central Sussex corridor, part of the Gatwick Diamond, connects Crawley, Horsham, and Mid Sussex.
• Under a two-unitary model, West Sussex would have four seats on the Mayoral Combined Authority (MCA), with each pair representing approximately 25% of the Sussex-wide population. A single-unitary solution would represent over 50% of the population but have just two seats on the MCA, creating a significant democratic deficit.
• The two-unitary model is the preferred option among the public, staff, and stakeholders.

The report also outlined the resource and legal implications of the reorganisation, including compliance with the Local Government and Public Involvement in Health Act 2007² and the English Devolution White Paper. It noted that the financial case and modelling approach were developed with input from statutory finance leads and validated by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The report also considered the council tax implications of the reorganisation. Currently, the council tax for band D properties differs significantly between West Sussex's seven districts and boroughs. As part of LGR, the combined council tax band Ds for district and borough councils and the county council will need to be harmonised to a single set of charges for the unitary authority/authorities within seven years of Vesting Day.

The report noted that an extensive engagement exercise had taken place, designed to gather meaningful input from a wide range of stakeholders. The engagement included residents, staff, public sector partners, the voluntary and community sector, local businesses, and town and parish councils, and aimed to understand preferences, service usage, and future expectations.

The report also considered the community impact and corporate risks of the reorganisation, including the potential loss of local identity, uneven financial impacts on residents, and key transition risks.