The government announced on Monday that following "updated and privileged legal advice" it would be reviewing the plans for local government reorganisation.

Under the proposals, all of Norfolk’s eight councils would have been axed and replaced with three new ones.

How Norfolk would have been split into three unitary authorities (Image: Future Norfolk)

It would have been Norfolk’s biggest council shake-up in more than 50 years, which business leaders hoped would pave the way for a devolution deal to unlock investment and create jobs across the region.

Millions of pounds had been set aside in council budgets to pay for the changes, with hundreds of thousands having already been spent on consultants.

Candy Richards, who represents East Anglia at the Federation of Small Businesses (FSB), said: “Councils, businesses and local organisations have already invested significant time and resources in preparing for reorganisation.

“This is time that could otherwise have been focused on delivering services and supporting local economic growth.”

Candy Richards, regional business and stakeholder engagement manager for East Anglia at the Federation of Small Businesses (Image: Lucy Taylor)

She said businesses - which she said are already “grappling with uncertainty across the wider economy” - need “clarity........

© Norwich Evening News