Reorganisation review must result in ‘material change of direction’, the County Councils Network argues

The government’s review of its local government reorganisation programme must result in a ‘material change of direction’ if ministers are to avoid creating councils that are more costly and less financially sustainable than those they replace, the County Councils Network (CCN) has warned.

Following last week’s announcement that the new government will review its programme of reorganisation across 20 county areas, the CCN has written to Local Government Minister Jim McMahon welcoming the review and calling for the pause to be used to ‘restore confidence’ in the process.

After decisions made in both March and July, many of the network’s members raised significant concerns over the process, how transparent it was, and how previous ministers arrived at decisions – with many councils seeking to legal challenge the proposals.

These previous decisions to create 51 new councils involved extensive boundary changes and unprecedented levels of splitting high-cost services such as social care, with CCN previously warning they would likely cost local taxpayers more than the current ‘two tier’ system of county and district councils, while causing significant upheaval to services for the most vulnerable.

As many of these decisions proposed to split counties into several unitary councils, this deviated from the statutory criteria set out by government when it announced the programme, including the aim of creating councils covering 500,000 or more people and avoiding the unnecessary ‘disaggregation’ of care services.

It has been revealed that previous ministers went against ministerial advice in several areas, implementing proposals for multiple unitary councils in Essex and Suffolk despite warnings from Whitehall officials over financial sustainability and the impact on services such as social care.

Consequently, the CCN had called for the new administration led by Andy Burnham to review the programme. With that pause now announced, CCN’s Chair-Elect Cllr Sean Matthews has written to Local Government Minister Jim McMahon MP, outlining the network’s strong support for the move and how county councils want to see the review conducted.

They say the review must be genuine – and then result in a material change in direction.

The letter calls for ministers to provide urgent clarity on how quickly the review will be completed, the timescales for implementing any future reorganisation decisions, and fully reimbursing the costs incurred by councils as a result of the programme: both to date and in the future. Crucially, the letter argues ministers should revert back to the policy’s original aims.

Cllr Matthews writes:

“While we recognise some our members will have different views on the desirability of reorganisation moving forward, if it is to proceed, we need ensure that the programme is delivered in a way that is consistent with the principles and criteria originally developed in partnership between ministers and local government.

“….The review should seek to realign the programme with (the original) criteria rather than revise them. This includes the population threshold of 500,000 or more, avoiding unnecessary and disruptive disaggregation and boundary change, and ensuring financial viability…..

“Unless this review results in a material change in direction, we will continue to face the prospect of large-scale fragmentation and complex boundary change that will create a pattern of reform that is more costly, less stable and less effective than the current two-tier system. This will ultimately undermine the government’s reform and devolution objectives.”

Cllr Matthews writes further that the review is an opportunity to rebuild confidence in the policy and programme, where reorganisation is desired from individual areas.

Cllr Matthews adds:

“The review presents an opportunity to restore confidence that decisions are being taken transparently, consistently and on the basis of objective evidence.”

The letter outlines CCN’s views on what the parameters of the review should include:

• Re-affirming the existing statutory criteria for reorganisation and ensure they are applied consistently and transparently across all decisions.
• Undertaking a transparent, evidence-based reassessment of the decisions and the ministerialadvice underpinning these, ensuring the process is legally robust and compliant– not seeking to invite alternative proposals that go against the existing criteria.
• Review implementation timescales and phasing, accounting for the complexity of reforms, delays to the programme and capacity of the government and wider sector.
• Fully-funding transition and implementation costs.

Whilst many CCN members had significant concerns over the decision made in their areas, a number of county councils did want to see the chosen proposal proceed. Ministers should provide those places with certainty as soon as possible, while progressing on their wider devolution aims.

The CCN letter adds:

“Where existing decisions or proposals command local support, align with the established criteria and are demonstrably sustainable, we would encourage government to explore ways to provide those areas with certainty at the earliest opportunity.

“It is also vital that this pause does not mean the momentum is lost on devolution and rewiring the state, with county councils the vital building blocks for growth. Agreement must be reached by consent, and for areas that want devolution, government should continue with its pledged timescales of establishing strategic authorities in all places by the end of 2028.”

Notes to editor

You can download the letter to Local Government Minister Jim McMahon here.