Labour’s manifesto promised to “deepen” and “widen” devolution, with more areas expected to take on the mayoral combined authority (CA) model like that headed by Sadiq Khanin Greater London.
Local elections are held every year in May – but Mr McMahon told LBC some councils “essentially won’t exist” if they make a request for reorganisation under the devolution proposals.
“At the moment, the assumption is that elections are going ahead,” he said.
“However, it’s usual in a process of reorganisation that when a council makes a request for reorganisation – that if there are elections taking place to a council that essentially won’t exist within the term of those elections – then you hold off the elections and you elect to a shadow body, and the shadow body basically is a form of the new councils that will follow.”
Some local authorities have already requested reorganisation, he added, saying there will be a statutory consultation before any changes are made.
Asked if some local authorities would be closed or merged Mr McMahon said: “That’s the nature of reorganisation.”
There are 12 areas of England under the CA model, headed by regional metro mayors. These mayors, including Andy Burnham in Greater Manchester, have more powers than leaders or mayors of local councils.
Mr McMahon, the minister for local government, told Sky News he wants the “whole country to realise the benefit of what that mayoral combined authority can bring”.
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Speaking later to Good Morning Britain, he said merging councils could bring £2bn in efficiency savings.
He said there are only 21 counties still with a two-tier system of local government – meaning there is a district and a county council – and lots of people “don’t know which council to go to”.
“This is about simplifying the system so that the accountability is strong, but it’s not to diminish the work that district councils and county councils have done in the past,” he said.
Mr McMahon will set out more details of the plan this afternoon in parliament.
It comes on the same day as a speech by Deputy Prime Minister Angela Rayner, who will vow to push power out of Whitehall and into the hands of people with “skin in the game” across a range of policy areas including housing.
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1:04
‘House building target is achievable’
One of the central missions of the new Labour government is to build 1.5 million homes by the end of this parliament – with local councils last week told to come up with “immediate, mandatory” housing targets as part of the plan.
Ms Rayner, who is also the housing secretary, is expected to say that bringing together “strategic authorities” would help “to avoid duplication and give our cities and regions a bigger voice” in order to get spades in the ground.
However, the Local Government Association – the membership body for authorities in England and Wales – warned devolution was “not an end in itself” and “cannot distract from the severe funding pressures that are pushing local services to the brink”.
The government’s full devolution proposals will be set out in a White Paper, due to be published in parliament later today.
People whose homes have been destroyed by the floods sweeping across parts of the UK over the past couple of days have been telling Sky News how they coped with the deluge.
In Lincolnshire, where a major incident has been declared, Terry, from Grantham, showed a Sky crew the aftermath of the deluge in his home, which was left under two feet of water.
“Everything’s gone,” he said, adding that he was “devastated”.
The first sign of trouble came at lunchtime on Monday, when his wife woke him and said there was water coming in [to the house], and “within a few minutes, the whole house was flooded”.
They rushed their belongings and pets upstairs, he said, as he revealed the damage to the flooded living room and kitchen, where the water mark was above a power socket.
Terry said the kitchen, where the floor was covered in sludge, smelled of mud and sewage, and their furniture and carpets were wrecked.
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They have no electricity and the food in the cupboards and freezer was “completely ruined”.
Graham Johnson, who lives in a boat with his wife and dog, in the village of Barrow upon Soar in Leicestershire, was in the pub on Monday night, before the water started to rise “rapidly”.
People living in a local caravan park were moved as a severe flood warning was issued.
Mr Johnson said he had gone out “for a couple of pints as usual and, the next thing we know, bingo”.
The couple feared their boat home was about to be swept towards the bridge.
“That’s our pride and joy, where we live, and we didn’t want to lose it,” he said, as he praised the “fantastic” emergency services, who rescued them and their dog after a nervy three-hour wait.
They were two of the 59 people rescued by firefighters in the county, where a major incident was declared and crews were called out to 160 flood-related incidents, the Fire Brigades Union (FBU) said.
Another Leicestershire resident whose home was inundated was Qasim Abdullah from Loughborough.
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0:53
Flooding across East Midlands
Pictures taken by the Associated Press show him walking through almost knee-deep water in his living room.
In nearby Quorn, businesses have shut as the main high street has flooded for the second time in as many years.
Two of the pubs in particular have been damaged.
Last year, residents had to launch a crowd fundraiser to help pay for the costs of renovation. Not to mention soaring insurance premiums.
Indy Burmi, who owns a hair salon and restaurant, hasn’t suffered flooding, but said he’s had to close up and cancel all Tuesday’s reservations, as his clients simply can’t get into the village.
And, with more rain forecast, conditions could get even worse in the short term, while residents worry that an annual battle with rising water is now the new normal.
Elsewhere in the UK, the next danger is from ice forming on untreated surfaces after rain on Tuesday evening, the Met Office has said, as it issued a new warning for northern England and Wales from 5pm until midday on Wednesday.
The Royal Liverpool University Hospital has declared a critical incident due to “exceptionally high” demand on A&E and patients being admitted to wards.
The hospital said there had been a spike in people with flu and respiratory illnesses going to emergency departments in recent weeks.
A spokesperson for the hospital said it had a “comprehensive plan in place” and was “taking all the necessary actions to manage the challenging circumstances”.
“We are working with partner organisations to ensure those that are medically fit can leave hospital safely and at the earliest opportunity,” they added.
The hospital warned some people would experience delays as it prioritises the sickest patients.
People whose case isn’t an emergency are being asked to see their GP, pharmacy or walk-in centre – or call the 111 service for advice.
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The Royal Liverpool University Hospital is in the city centre and is the biggest hospital in Merseyside and Cheshire.
Declaring a critical incident can happen when a hospital is experiencing exceptional demand, or sometimes if there is a serious problem with staffing levels.
It indicates it can’t function as normal and allows it to take extra measures to protect patients, such as prioritising the most unwell people and getting support from other agencies.
It could last hours, a few days, or weeks if necessary.
A critical incident was also declared on Friday by the NHS Cornwall and Isles of Scilly Integrated Care Board.
It said it had seen almost four times as many inpatients compared with last year and urged people with flu to avoid going to A&E.