Scottish Government proposal for local government reform

The Scottish Government has recently published a proposal for significant local government reform which would replace Scotland’s current local government framework with a new framework comprised of regional and community authorities. The proposed reforms are intended to improve public service delivery by redistributing decision-making powers currently held by local authorities.

Background

On 21 September 2026, the Scottish Government published a policy paper which announced a proposal for significant local government reform in Scotland. The proposed reforms are intended to improve public service delivery and would give rise to a reorganisation of Scottish local authorities and redistribution of powers held by local bodies. The current proposal envisages replacing the current local authority model with a new framework which includes both regional authorities and community authorities.

Current structure of local authorities

Prior to 1996, Scotland operated a two-tier system of local government established in 1975 consisting of 9 regional councils, 53 district councils and 3 island councils. Local government powers were therefore exercised at both regional and district levels.

The Local Government (Scotland) Act 1994 abolished regional and district authorities and replaced these with 32 unitary local authorities. Since 1996, each local authority has been responsible for delivering a wide range of services including education, social work and social care, housing, planning, roads and transport, waste collection and disposal and local economic development.

Proposed reorganisation

The Scottish Government has proposed to replace the current 32 local authorities with a combination of regional and community authorities. In line with the proposal, between 6 and 10 regional authorities would be established to undertake strategic decision-making. These authorities would be responsible for strategic functions such as education and early learning, waste management and cleaning.

Alongside regional authorities, the Scottish Government proposes to establish between 120 and 160 community authorities focused on local decision-making. Community authorities would undertake local functions such as determining householder planning applications, community planning, making licensing decisions, managing historic environment and overseeing sport, leisure and culture facilities. It is not clear if the split in functions will be similar to the previous divide between regional and district councils, or if larger community authorities would have the same functions and powers as smaller authorities.

The Scottish Government’s proposal also specifies that bespoke solutions would be designed for island communities. It also states that councillors would continue to be elected at the current ward level across Scotland and would sit on both the relevant community authority and associated regional authority.

Health and social care

The Scottish Government has highlighted its commitment to engaging with local authorities, trade unions and healthcare and service providers in an effort to reform social care. It has suggested that the outcome of these discussions is expected to inform the development of local government reform.

Funding arrangements

The Scottish Government has indicated that funding arrangements would be informed by the allocation of responsibilities between community, regional and national bodies. It will give consideration to the most appropriate method of funding, taking into account different local needs and circumstances.

Next Steps

This proposal remains at a consultation stage and is intended as a starting point. At this stage, the proposal remains high-level and does not yet specify the precise number of proposed regional and community authorities, their geographical boundaries or the funding arrangements which would apply to these bodies. The Scottish Government has stated that the proposals are intended to inform ongoing discussion and more detailed proposals will be developed for consideration by Parliament, local authorities and communities.

If implemented, however, the reforms would represent the most significant restructuring of Scottish local government since 1996, resulting in the creation of new public bodies and the redistribution of decision-making powers currently exercised by local authorities.

If you would like to discuss how this proposal may affect your organisation, please contact Niall McLean, Douglas Waddell or your usual Brodies contact.