Hertfordshire at a Crossroads: Local Government Reform and Economic Growth

Historic Changes Coming to Hertfordshire

Hertfordshire is undergoing one of the most significant transformations in its modern history, as all 11 councils jointly submitted their final proposal for local government reorganisation to the government on 28 November 2025. This marks a pivotal moment for the county’s 1.2 million residents, as the current two-tier system of district, borough, and county councils will be replaced by new unitary authorities.

The proposal documents set out three potential unitary options: two, three, and four, with each option clearly articulating why it is being considered and what the benefits could be. The restructuring aims to simplify local government, making it easier for residents and businesses to access services whilst delivering better value for money. Elections for shadow authorities are expected in May 2027, with the new authorities formally taking on all responsibilities in April 2028.

Economic Resilience Amid Challenges

Despite the structural changes ahead, Hertfordshire’s economy is showing a degree of resilience, with the county continuing to attract high-paying employment and maintaining a low unemployment rate. The county has achieved an employment rate of 80.6%, slightly higher than the national target of 80% set in the Get Britain Working White Paper.

The county’s economic strategy focuses on three critical themes: inclusion, sustainability, and digital innovation. Hertfordshire’s five key sectors—advanced manufacturing, life sciences, creative industries (film and TV), digital, and clean growth—are driving the UK economy. A major boost came in October 2025 when Equinix completed acquisition of an 85-acre plot in Hertfordshire for a £3.9 billion data centre investment, which will deliver 250+MW of compute capacity and create 2,500 construction jobs.

Looking Ahead: Opportunities and Challenges

As Hertfordshire navigates this period of transformation, the changes promise to bring government closer to local communities while maintaining the county’s position as an economic powerhouse. The reorganisation represents a once-in-a-generation opportunity to reshape how services are delivered across urban, suburban, and rural areas of the county.

For residents and businesses, these developments signal both stability and change. The strong employment figures and continued economic investment demonstrate Hertfordshire’s enduring appeal, whilst the government restructuring aims to create a more efficient and responsive local authority system. As the government reviews the submitted proposals, Hertfordshire stands ready to embrace a new chapter in its governance whilst building on its economic strengths for future prosperity.