The Government has withdrawn plans to turn three local authorities into two as part of a local government shakeup.

Rutland was due to combine with Leicestershire to form a new authority under the local government reorganisation (LGR) scheme, leaving a broadened Leicester city in the middle to form a second.

The plans were met with significant backlash following their announcement in July, with residents and officials both asserting they did not reflect Rutland's best interests.

The scheme was paused by the Government in early September following the emergence of legal hurdles.

Despite withdrawing the two-unitary model plan, Westminster has reasserted its commitment to delivering LGR in the region, advising further updates will arrive shortly.

Speaking on the announcement, Rutland County Council leader Christine Wise said: "While it's encouraging that ministers are giving serious consideration to the concerns that have been raised, we will continue to push for the government to take an evidence-led approach to LGR."

"If LGR does go ahead, it must deliver financial sustainability, local accountability and better outcomes for communities."

Cllr Lucy Stephenson had been critical of the Government's decision, suggesting the proposals were not what Rutland had sought for its future.

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On the withdrawal statement, Cllr Stephenson told the LDRS: "It's great that it looks as though we're keeping Rutland County Council, but the Government seems to change its mind as quickly as its socks, so I'm not sure how confident and settled I should feel."

Following yesterday's Autumn Budget announcement (October 28), the Government revealed Leicester, Leicestershire and Rutland are in the "final stages" of becoming a mayoral strategic authority.

Strategic authorities are alliances between local government bodies, headed by a regional mayor, to which power from Westminster may be devolved.

"If devolution succeeds in transferring more funding and autonomy to local areas, it could have a transformative effect," Cllr Wise said.

"Important decisions that impact Leicester, Leicestershire and Rutland should be made closer to home, in a joined-up way, by those who know and understand our area."

Cllr Stephenson echoed Cllr Wise's enthusiasm, adding she was "very interested" in the prospect of Rutland forming a mayoral strategic authority.