Concerns local councils shake-up will cost a ‘fortune’
The change is currently estimated to cost around £30m
There are concerns the shake-up of councils in Gloucestershire will cost the taxpayer a “fortune” with current estimates suggesting the bill could be around £30m.
The current structure of local government in the county means the main services are split between Shire Hall and district authorities.
However, plans are underway to change this as the Government wants to see such councils merged into unitary authorities.
They believe simpler structures can lead to better outcomes for residents, improved local accountability and savings which can then be reinvested in the public.
But there is a concern, particularly among councillors in the Forest of Dean and Stroud that the move will take decision making further away from voters.
Currently there are three options being worked on in Gloucestershire. One which would involve Gloucestershire County Council merging with all six districts.
Another which would see the current County Council area split into two authorities.
One in the east based on the current areas of Cotswold District and the boroughs of Cheltenham and Tewkesbury, with another in the west made up of the city of Gloucester and districts of Stroud and the Forest.
There is also a Greater Gloucester plan being worked up by the City Council which focuses on the creation of a unitary authority centred around the county town with the rest of Gloucestershire under another council.
Civic chiefs have raised concerns about the impact the work on reorganisation is having on local councils on costs and officer time.
Councillor Jeremy Hilton (LD, Kingsholm and Wotton) asked at yesterday’s (September 24) corporate overview and scrutiny committee how much had been spent on local government reorganisation so far by Shire Hall.
Council leader Lisa Spivey (LD, South Cerney) said the direct figure of the cost so far is £800,000.
“That doesn’t include officer time,” she said.
“It is costing a fortune. Thanks Government.”
Cllr Hilton agreed that “it is costing a fortune” and asked if there was an estimate of the cost of going through the process.
Finance director Nina Philippidis said the estimate is around £30m.
“It will be around that figure,” she said.
“It will be less cost for a single unitary and more cost for two unitaries,” she said
Cllr Hilton asked if there had been any hint the Government would be providing more funding to cover the cost of local government reorganisation.
“It is going to put some councils into debt,” he said.
“If this money has got to be spent, it will be taken away from the current services we have to deliver.
“Do we have any indication there is any extra money from the Government?”
Ms Philippidis said they have not had any such indications.
“The Government’s policy position is that the savings that will be generated from effectively streamlining the structures across seven organisations in Gloucestershire will pay back the cost,” she said.