Spotlight: LGR update, Ofgem NESO criticism and Reform Conference review

This week the Government really set the cat amongst the pigeons by announcing that it will pause and review its Local Government Reorganisation programme. Essex, Hampshire, Norfolk and Suffolk have had plans withdrawn outright, while a further 14 areas have been paused pending a review of the programme. 2027 local elections will go ahead on existing council boundaries where schemes were paused or scrapped.  

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For developers, this means continued reliance on existing councils and current decision makers in affected areas for the foreseeable future. The Government insists devolution and local growth remain the goal, but the pause highlights the challenge of reforming local government while maintaining certainty amongst those responsible for delivering housing, infrastructure and regeneration.

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Spotlight on next week

• We’re expecting another busy week in parliament, with a number of debates and committee sessions relevant to our sectors, including a Public Accounts Committee Oral Evidence session on HS2 and Euston, and the continuation of the Transport Committee’s scrutiny of the Draft Heathrow Expansion National Policy Statement.

• Can Andy Burnham unite the left? The Holborn & St Pancras by-election on 8^th October will put that question to the test. Labour has already selected Camden Council leader Sagal Abdi-Wali to succeed Sir Keir Starmer, who resigned as an MP earlier this month. The Greens are yet to decide: party leader Zack Polanski is the frontrunner, but he faces a stiff challenge from local Green councillor Hamza Chowdhury. Whoever they pic, a strong Green showing in what should be safe Labour territory would be an early sign of how far Burnham’s efforts to unify the left can go.  

• Reaction to the government’s decision to scrap or pause and review many Local Government Reorganisation schemes will continue, with affected local authorities working out what it means for them.

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This week’s headlines:

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ENERGY

TOP STORY: 📰 NESO ‘not delivered’ Connections Reform or 'made enough progress' | Solar Power Portal

Energy regulator Ofgem has concluded that the National Energy System Operator (NESO) failed to deliver its key objective of reforming the UK's grid connection process. Intended to reduce the lengthy queue of energy projects waiting to connect to the electricity network, Ofgem found that NESO missed key reform deadlines, provided inconsistent information and failed to implement the programme effectively.

We’ve also been reading:

✒️ End-scheme assessment of NESO's Business Plan 2 performance | Ofgem

✒️ Supply chains for low carbon electricity infrastructure | Research briefing, UK Parliament

🗣 Minister McCluskey speech on AI for clean energy vision | Speech by Minister for Local Energy and Jobs, Martin McCluskey

📰 Government to use AI in bid to create more sustainable energy grid | New Civil Engineer

📰 UK energy operator sticks with Palantir in £21M direct award | The Register

📰 UK grid connections reform mishandled, battery skip rates too high | ESS News

📰 Industrialization and standardization could cut North Sea offshore wind costs by up to 28%, DNV-led study shows | DNV

📰 Ranked: the UK's most profitable offshore wind farms | Recharge

📰 Decision on 2,400-acre Oxfordshire solar farm plans delayed again | BBC News

📰 Welsh government proposes new public energy company to cut bills | Energy Live News  

📰 Reform would ban all new ‘net zero projects’, Tice says | Planning Resource (paywall)

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INFRASTRUCTURE

TOP STORY: ✒ UK Data Centres Ambitions Risk Being Held Back By Power Constraints, Warns New Industry Report | Report by Edinburgh Chamber of Commerce

An industry report by the Edinburgh Chamber of Commerce has warned that the UK's ambitions to become a global leader in data centre infrastructure could be undermined by a lack of available power capacity. The report reinforces concerns that grid constraints are becoming one of the biggest barriers to investment - particularly for data centre, AI and tech growth.

We’ve also been reading:

✒️ New era for Liverpool buses as government backs local control | Press Release from  

The Department for Transport, Simon Lightwood MP and The Rt Hon Andy Burnham MP

✒ Great British Railways sets course for rail freight growth | Press release from Department for Transport and The Rt Hon Heidi Alexander MP

✒ New members appointed to NISTA Expert Advisory Council | Press Release from National Infrastructure and Service Transformation Authority, HM Treasury and The Rt Hon Emma Reynolds MP  

✒ Chancellor takes axe to delays holding back growth | Press release from HM Treasury and The Rt Hon John Healey MP  

🗣 House of Lords Environment and Climate Change Committee question the Office for Environmental Protection (OEP) | Environment and Climate Change Committee, Wednesday 8^th September 2026

📰 Growing cyber threats raise concerns over security of UK infrastructure | Sky News  

📰 UK datacentres will create just 25% of jobs predicted by tech sector, analysis finds | The Guardian  

📰 UK Data Centre Infrastructure Surges to $5.7BN | Digit News  

📰 Grid delays create critical bottleneck for UK ports | Enlit

📰 Parliamentary questions highlight scale of water investment and resilience challenge | Water Magazine

📰 UK ministers explore raising price of water for some users amid shortages | The Guardian

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DEVELOPMENT

TOP STORY: 📰 Reform's plans for planning reform | Property Week

At Reform UK's conference last week, Deputy Leader Richard Tice set out the party's approach to planning: a stronger presumption in favour of brownfield development, changes to developer contributions, significantly reduced affordable housing requirements and a move away from national housing targets.

Read Luminate’s take on the Reform Party Conference and what it means for our sectors here.

We’ve also been reading:

✒️ Review of local government reorganisation launched | Press release from  

Ministry of Housing, Communities and Local Government and The Rt Hon Angela Rayner MP

🗣 Local Government Reorganisation | Transcript of Parliamentary Statement from The Rt Hon Angela Rayner MP, Ministry of Housing, Communities and Local Government

🗣 Housing and Planning Minister speech at Housing Community Summit | Speech from  

Ministry of Housing, Communities and Local Government and The Rt Hon Matthew Pennycook MP

✒️ Consultation Launches on Waterloo Station Redevelopment | One Waterloo

📰 UK Conference 2026 - Reform Party Scotland | Reform Party Scotland

📰 ‘Revival of council housing should not threaten RPs’ delivery’, says Pennycook | Housing Today

📰 Deputy Reform leader says he will listen to sector after pushback on allocations policy | Inside Housing

📰 15 key things we learned about Reform UK’s thinking on planning from its party conference | Planning Resource

📰 House prices drop for second month in a row | Estate Agent Today

📰 Record numbers of social homes sold by housing associations | LGC