The decision to approve plans for the major restructure of Hampshire’s councils will be withdrawn, the Government has announced.

Ministers have launched a review of the local government reorganisation (LGR) decisions for Hampshire following new legal advice.

The controversial LGR plan involved four new larger councils.

This would have seen Southampton merge with Eastleigh and parts of Test Valley and the New Forest.

Remaining areas of the New Forest and Test Valley were set to join with most of Winchester and East Hampshire.

Portsmouth was expected to merge with Fareham, Gosport, Havant and the remaining parts of Winchester and East Hampshire, while Basingstoke would be partnered up with Hart and Rushmoor.

These unitary authorities were due to hold shadow elections next year before taking over all council services in 2028.

The sudden shift in direction means the government will confirm local elections in May 2027 will go ahead on existing council boundaries.

A statement from the Ministry of Communities, Housing and Local Government said the review, which will be announced by secretary of state Angela Rayner later today in parliament, will include decisions on Essex, Hampshire, Norfolk and Suffolk.

The decisions on these areas have been withdrawn in light of new legal advice, the statement said.

Plans for 14 other areas, along with Cambridgeshire & Peterborough and West Sussex, will also be reviewed and paused while this is carried out.

Ms Rayner is expected to tell parliament this afternoon: “As we are now more determined than ever to devolve power closer to the people we represent, it’s only right that as a new Secretary of State I make sure that everything we do is working towards that plan to change Britain, without delay.

“The Prime Minister told the House last week, he was ‘prepared to look at local government reorganisation’ and he asked me as his Communities Secretary to ‘do that’.”

She is expected to go on to say: “ In that context, in light of legal advice, I want to satisfy myself firstly that the right process is in place, that it is robust, and of course complies with the law.

“And secondly, I want to fully test whether our proposals for local government reorganisation meet the priorities of a new administration and a new Prime Minister and any additional considerations.”

It is understood the former deputy prime minister will tell MPs she has not taken this decision lightly and she recognises the huge amount of work that has already gone into progressing LGR.

Reorganisation in Surrey will not be affected by the review and the two new unitary authorities – East and West Surrey – will go live in April 2027.