Cambridgeshire councils could face £18m bill to reorganise under local government shake-up

Councils in Cambridgeshire could have to pay more than £18million to reorganise under a government push for unitary councils.

The estimated cost to local councils was described as “horrifying” by one councillor.

Last month Jim McMahon OBE MP, the Minister of State for Local Government and English Devolution, sent a letter to the leaders of the seven councils in Cambridgeshire, asking them to work together to create a new “simpler” local government structure.

The area has a two-tier system, with some services delivered by Cambridgeshire County Council, such as highways maintenance, and others by district councils, such as housing.

The county also is covered by the Cambridgeshire and Peterborough Combined Authority.

The government has said it wants to see a move to unitary councils that provide all services currently shared between the county and district councils.

Peterborough City Council is already a unitary council, but is included in the reorganisation plans.

The changes could see fewer councils covering a larger area, or a single council covering the whole county.

The councils were asked to submit an interim plan by March 21, and to submit a full proposal by November 28.

Stephen Moir, chief executive at the county council, told councillors at a strategy, resources and performance committee meeting on Tuesday that the government had been “very clear” councils would be expected to “consume the costs of local government reorganisation”.

He said based on the costs faced by councils in other parts of the country that have already gone through reorganisation, that it is anticipated it will cost “at least £18.6m” across all the Cambridgeshire councils.

Fenland Council leader Cllr Chris Boden said this figure was “horrifying”.

The county council has agreed to set aside up to £1million to help pay for some of the extra work being done on local government reorganisation.

Cllr Boden said he knew there was an “awful lot to be done”, but asked for more information on how his “large amount” of money would be spent.

Mr Moir said it could be spent on a mixture of things, including additional short term staff with specialist skills, as well as short term consultants, and for independent assurance on the “robustness” of any proposals put forward.

He said: “I am very mindful that in the ministerial invitation to us, the government has been very clear that they expect us to continue to provide all business as usual services and consume the costs of local government reorganisation.

“Therefore we are having to look at our own reserves to partly support that, in addition to the extensive use of existing county council staff.

“I need to be able to make sure we get the balance right, so business as usual services do not suffer as a consequence of having to respond to the government’s invitation.”

Councillor Richard Howitt said some committees are considering strategies that go on for up to 10 years, contracts that go on for seven years, and a capital programme that could outlast the county council.

He asked for committees to be given “clear guidance” on dealing with these things as the reorganisation work progresses.

The county council will discuss the plans for local government reorganisation at a meeting next week (March 18).

The papers published ahead of the meeting include a draft initial response from six of the area’s council leaders – Fenland District Council is not listed in the draft letter.

The letter does not set out a proposed new council structure, but said the leaders are “considering different unitary scenarios”.

It also highlights some of the challenges being faced in the area, including “significant infrastructure gaps, high growth areas, demand for housing and extreme housing affordability challenges in some areas”.

Other councils in the area have also scheduled meetings in the coming weeks to discuss the local government reorganisation plans.