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Yahoo
13-03-2025
- Politics
- Yahoo
Districts warn that ‘mega councils' may limit growth and public trust
The Government's aim to create new 'mega councils' has been dismissed by a report as an unnecessary, disruptive move driven by 'basic number crunching' that will perpetuate failing models of service delivery. The analysis found benefits to the public purse from growing local economies, building housing, preventing future needs and reversing a 'catastrophic loss of trust in institutions' far outweigh any short-term savings from consolidating existing council functions. It calls on the Government to explain how its objectives will be delivered and what is required in terms of 'geography, operating model, design, leadership, capability to fit with new or existing structures of partnerships'. The report, commissioned by the District Councils' Network (DCN), adds that realisation of the Government's aims 'demands a place and people-based approach to the design of future organisations'. It said: 'It is in places that true change happens, be it in a region or a neighbourhood or a village'. 'All of these are key dimensions in the renewal of public services and, consequently, the renewal of the nation.' The report added: 'The greatest risk is losing momentum and settling for change that isn't change. Instead, (local government reform) must focus on a meaningful renewal and reform – driving economic growth, improving public wellbeing, and restoring faith in the local state.' The English Devolution White Paper, published in December, required the 164 English district councils to merge with county councils to create large unitary authorities with populations in excess of half a million people. A timetable was imposed, with a deadline for interim proposals set for March 21. The Government's aim is to have the new councils, which would serve about 20 million people, up and running by 2028. The report, by Inner Circle Consulting, calls for flexibility over the 500,000 minimum population size so that the Government looks 'beyond the lure of theoretical cash savings set out by those arguing that fewer councils means greater savings'. The urgency required contributes to 'a lack of bandwidth in local government to develop ambitious proposals', it adds. This means often 'the outcome could be driven by risk aversion rather than innovation, and a mistaken conclusion that it would be simplest just to consolidate things as they are into the most basic model of something new'. The report said conversations with many public service leaders revealed that 'without exception' they are finding the current stage of local government reform 'personally and professionally challenging'. It adds: 'While many are trying to remain hopeful, they remain deeply concerned that there is insufficient time and safe, reflective spaces to work out what could and should happen next. 'As one serving chief executive put it: 'the idea that we can politely organise ourselves around this and figure it out together fails to recognise the power dynamics that are in play'.' Responding to the report, DCN chairman Sam Chapman-Allen said local government needs 'to raise our game beyond merely consolidating existing structures to radically rethinking them so that they meet the needs of our communities'. He added: 'It's going to take more than mere mergers to bring about growth, end the crisis of trust in local institutions and to move the focus of services from reactive to preventative. 'To reorganise without determining how we transform is likely thwart central and local government's shared aim of promoting growth, jobs, housing and prevention.' Mr Chapman-Allen said claims that 'mega councils' will deliver savings are 'largely theoretical', and called on the Government to rethink requirements. 'The danger is that so many places – but small cities and rural areas – are likely to be held back if subsumed into a far wider area,' he added. But there is disagreement in local government about the way best forward. Recent analysis for the County Council's Network backed proposals for the creation of new unitary councils in England, arguing that new authorities must cover areas of 'at least' 500,000 people or more in order to save billions of pounds and free up investment in local services. The CCN report found that replacing the two-tier system with new councils with minimum populations of 500,000 or more could save at least £1.8 billion over five years. It also argued that those savings reduce dramatically if county and district authorities are replaced with multiple smaller councils, potentially costing local taxpayers hundreds of millions. Commenting on the report, CCN chair Tim Oliver said: 'It is absolutely essential that the Government now stick to the statutory criteria they have set out, treating the 500,000 as a minimum not an optimum population scale. 'This will ensure we create new councils with the scale and capacity to deliver substantial savings to be reinvested in frontline services to the benefit of local taxpayers.' A Ministry of Housing, Communities and Local Government spokesperson said: 'This Government inherited a crumbling local government sector which we are now focused on rebuilding. This means taking tough choices to make local government more sustainable and give taxpayers the services they deserve. 'Reorganisation will be crucial to creating a more accountable system which will streamline the delivery of local services, and give councils the power and resources they need to deliver for local residents.'
Yahoo
11-03-2025
- Politics
- Yahoo
District councils unite against one unitary authority
District council leaders have said they are "united" against the idea of having one unitary local council for Suffolk. Suffolk County Council has officially published its interim plans for local government reorganisation and has proposed a single unitary authority to replace the current county and district two-tier system. Richard Rout, from the Conservative-run county council said: "Independent analysis shows that the financial benefits of having just one council would be more than nine times greater than a two-council [unitary] model." The five Green and Labour district council leaders say one authority "would be too large to work effectively and too remote for local residents to be heard". The government announced in its Devolution White Paper in December it was shaking up local councils and devolving power to new mayors across the country. Councils would be scrapped and replaced by one, two or three authorities, which would provide all services, including social services and education. The current system in Suffolk where the county council provides the bulk of services including social services, education, roads and waste disposal. The county's five district councils (Babergh, East Suffolk, Ipswich, Mid Suffolk and West Suffolk) provide waste collection, planning and building services, and leisure facilities. Suffolk and Norfolk have been fast tracked for devolution, which means they are having to reorganise quickly. The government wants to see interim plans - on how to reorganise and bring devolution to the county - by 21 March. The government has said any unitary authority must, at a minimum, cover a population of 500,000. For Suffolk, with a population of about 800,000, this would mean it could not have more than one new unitary authority. A combined authority would also be formed across Norfolk and Suffolk which would be led by a directly elected mayor and manage services like transport and employment skills. A report by the report published by the County Council Network (CCN) last week said "replacing the two-tier system with a new wave of councils... could save at least £1.8bn over five years". It added those savings would reduce "dramatically if county and district authorities are replaced with multiple smaller councils – potentially costing local taxpayers hundreds of millions". Devolution for Suffolk - what is it? Rout, the county council's cabinet member for devolution, local government reform said: "This latest analysis shows splitting Suffolk into three will actually cost money, not save it. "It's clear that having a single council for Suffolk will free up more money to reinvest in frontline public services that benefit residents. "If truly sustainable and effective councils are to be created, then one council for Suffolk is the only viable option." The District Council Network (DCN) has said it was "sceptical" about the levels of savings claimed in the CCN report. The DCN's chairman Sam Chapman-Allen said: "There is no way that £1.8bn can be found by merging councils without ravaging the services local people most value to find savings." The leaders of Suffolk's five district councils argue that one unitary would be too big, and cite new DCN research which showed "there's absolutely no correlation between population size and the performance or financial stability of unitary councils". The Green leader of Babergh District Council Deborah Saw said: "The key to local government is in the word 'local'. "This is why we strongly believe two or three unitary councils will deliver the best for Suffolk's communities. "There is simply no evidence that bigger councils give you better services." Each council will be deciding on their interim plans and submitting them by the government's deadline of 21 March. The plans will be reviewed and negotiations amongst all councils will continue until final plans will be put forward in September. Follow Suffolk news on BBC Sounds, Facebook, Instagram and X. Council calls for one-authority devolution deal Single unitary authority for Suffolk unpopular Devolution for Suffolk, What is it? Consultation opens on joint mayor for two counties Leaders united against single authority Suffolk County Council Devolution White Paper


The Independent
31-01-2025
- Politics
- The Independent
Government warned ‘mega councils' plan is based on flawed evidence
Threatened district councils have accused the Government of relying on limited and flawed evidence to justify creating so-called 'mega councils' across England. The second tier authorities warned that the planned move in county areas risks sidelining communities and failing to deliver financial benefits and economic growth. The English Devolution White Paper, published in December, said 164 district councils and 21 county councils responsible for a combined population of 20 million and an annual budget of £32 billion will be merged to create authorities serving at least 500,000 people. The District Councils' Network (DCN) said its members would support a form of reorganisation but they 'overwhelmingly' believe councils should be closer to 'unique' communities in order to meet their needs. When the DCN submitted a freedom of information request to establish what evidence was used by the Ministry of Housing, Communities and Local Government (MHCLG) to set the minimum population level, the response cited a report from 2020. The report by consultancy PwC, which was commissioned by the County Councils Network, found abolishing smaller councils and replacing them with large authorities could save billions of pounds over five years. The MHCLG also referenced as evidence the white paper itself, which DCN said does not include financial analysis of the minimum population figure, and a separate unnamed document withheld from public scrutiny to preserve a 'safe space' for ministers and officials to develop policy. The DCN said the PwC report is out of date as many councils in two-tier areas have already delivered 'significant efficiency savings' since 2020, including the development of shared services and management arrangements. It added: 'The report does not reflect the potential for councils to deliver further efficiency savings within existing structures. 'It pre-dates much of the surge in demand for adult social care, children's services, Send (special educational needs and disabilities) and temporary accommodation, which is expensive for councils to meet and reduces the scope for efficiency savings overall. The Government has not commissioned independent research to support its preference for large unitary councils and has done no analysis of its own District Councils' Network 'The Government has not commissioned independent research to support its preference for large unitary councils and has done no analysis of its own.' The DCN added the MHCLG had also made no assessment of the upfront costs of creating new unitary councils in Somerset, Cumbria and North Yorkshire in 2023. The MHCLG disclosure also revealed that an evaluation proposed last year of 'optimum scale', as well as the impact of population size and geography for unitary councils, was never commissioned. Sam Chapman-Allen, DCN chairman and Conservative leader of Breckland Council, said: 'It is alarming that there is so little evidence to justify the Government's requirement for all county areas to reorganise into mega councils with more than half a million people. 'The Government has done no analysis of its own and has commissioned no independent assessment. It is relying on evidence that is not remotely up to date. 'Local government reorganisation is not without risk and is difficult to get right. The danger is that, without robust assessment of the optimal scale of new unitary councils, we will get sub-optimal results.' He added DCN members would support reorganisation which benefits their communities but warned plans not based on thorough evidence will fail to provide value for money for taxpayers. 'The lack of evidence is all the more reason for the Government to give all local areas the time, flexibility and support to develop reorganisation proposals that will cater for local circumstances, reflect local identity and preserve the close link to place that is essential for driving growth. 'Local residents have been sidelined in the debate so far. Let's ask them what structures and scale make sense to them,' Mr Chapman-Allen said. At the time of the 2020 PwC report, Baroness Taylor, then leader of Stevenage Council and now a housing minister, told the BBC her local county of Hertfordshire was 'just too big' to be represented by one council. 'That is centralising local services which seems entirely wrong,' she said, adding that Britain has the 'least representation at local level of anywhere in Europe already'. 'That real democratic voice that people have at local level is really important to them,' she said.