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Shaking up local government in Devon: decision time

  • by JW

“All of the interim plans need to be submitted to the government by Friday 21 March.”

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OPTIONS, OPTIONS?

The county’s district and county councils have decided on what they’d like when it comes to shaking up local government in Devon:

A so-called ‘1-5-4’ proposal is understood to have been agreed upon by several Devon councils… The model suggests that the ‘1’ is Plymouth, which will remain as a unitary authority but may expand its borders slightly east into the South Hams. The ‘5’ in the proposal would be a combination of East Devon, Mid Devon, North Devon, Exeter and Torridge into one large council, while the ‘4’ would be South Hams, Teignbridge, West Devon and Torbay merging into another.

This coming Thursday 20th March, there will be a ‘Special Meeting’ at the county council –  at which this option and others will be considered, with the outgoing council leader saying to the Local Democracy Reporting Service that data is ‘vital’ in the council shake-up as Devon poses reorganisation options:

A report outlining five potential ways that Devon’s 11 existing main councils could be merged into either two or three new, larger ones has been published… A sixth option of one Devon-wide council is acknowledged, but “only for benchmarking purposes” rather than being viewed as a viable option.

The move to submit five proposals differs from the strategy of Devon’s eight district councils, which have all coalesced around one idea known as the 1-5-4 proposal. That would see Plymouth remain a unitary council with potentially expanded boundaries compared to now, while Devon’s other councils would be merged into one of two new unitary councils. That idea is included as one of Devon’s five suggestions.

Fears have been raised that the government views reorganisation as a way to save money, but Cllr McInnes said that is optimistic. “If you think how much money has been taken from local government since 2009/10, through austerity, the pandemic and now the cost-of-living crisis and the spike in inflation we’ve had, there simply isn’t the meat on the bone to make massive savings,” he said. “I think we can make efficiencies in terms of having one front door and integrating services [that are currently split across two councils] but we cannot make savings and if someone thinks they can take millions of pounds out of local government, it’s already been done.”

These are the five proposals being put forward on Thursday:

  • Two unitary authorities – one covering Plymouth and another covering the rest of Devon.A two unitary north Devon/South Devon split, with one council for Plymouth, Teignbridge, South Hams and Torbay, and another for Exeter, East Devon, North Devon, Torridge, West Devon and Mid Devon.
  • A two unitary south west and north east split, with one council for Plymouth, South Hams and West Devon and another for Exeter, East Devon, Torbay, Teignbridge, North Devon, Torridge and Mid Devon.
  • A three unitary option of Plymouth, greater Exeter (formed of Exeter, East Devon and Mid Devon) and the rest of Devon.
  • A three unitary option, with Plymouth remaining on existing boundaries, a new unitary council formed of Exeter, East Devon, Mid Devon, North Devon and Torridge and another made up of Torbay, South Hams, Teignbridge and West Devon.

There are significant issues to take into account.

LAND GRAB?

Firstly, squabbling between the current authorities continues. Exeter would still like more – as shown in yesterday’s press release boldly stating that its unitary submission drives growth and delivers for residents and communities.

Its plan for major expansion has been unveiled, as related by Miles Davis, BBC Devon political reporter:

Exeter City Council wants to expand into surrounding areas and take control of parts of East Devon, Teignbridge and Mid Devon. The change would mean the population of Exeter would shoot up from about 129,000 to between 300,000 and 350,000.

According to Exeter City Council, about 35,000 people commute into the city, external on a daily basis with the University of Exeter, the Met Office and the Royal Devon and Exeter Hospital among the major employers.

Council leaders were asked by the government to work together to come up with a joint plan for how the county should be split into new unitary authorities. Leaders in Devon have failed to come to a consensus on what the future should look like. Plymouth announced its plans for expansion into the South Hams on Wednesday – hoping to increase its population from about 265,000 to 300,000.

Devon County Council was expected to reveal its plans later on Monday for how the county might be run in the future. All of the interim plans need to be submitted to the government by 21 March.

So, it’s really not clear whether things can be sent to central government on time.

SPIRALLING COSTS?

Secondly there are those fears about costs, as referred to by the outgoing leader of the county council above.

And if we look next door, it suggests that we have the West Country experiment that proves Rayner’s ‘mega councils’ plan is doomed to fail, as reported by the Telegraph over the weekend:

When a new unitary authority in Somerset was formed in 2023, it was hailed as the answer to the town hall’s ever-increasing financial black hole. Yet only two years later, Somerset council is on course to hit a £190m budget shortfall by 2029 – forcing officials to impose an inflation-busting 7.49pc tax rise on citizens. At the same time, funding for public services from toilets to CCTV is being axed – meaning residents will never have paid so much for so little.

The troubled financial state of Somerset is a stark warning to Angela Rayner whose “mega councils” master plan – announced in the Devolution White Paper in December – is facing mounting scrutiny. Two-tier county and district councils across the country face being merged into one unitary authority, a local government body which is responsible for all services, in a bid to make much-needed savings. But, councillors have warned Ms Rayner that the alleged benefits from the scheme “lack a serious and robust evidential base”.

It is something Somerset residents can attest to. Since its “unitarisation”, services for public toilets, local theatres, CCTV and tourism visitor centres have been cut. The Liberal Democrats-run council has also been forced to introduce a new parking policy, which will impose Sunday charges at all car parks and scrap free parking. The cost of garden waste collection is rising too, from £68 to £73.50 next month. Meanwhile, the council tax rise will generate an extra £9m income and add an extra £129 a year on to the average household’s bill.

Martin Dimery, a Green councillor, said: “Somerset county council was already in a financial crisis when it effectively absorbed the districts. This was due to the burgeoning costs of adults and children’s social care against a backdrop of failing to keep council tax in line with costs. Far from saving money, Somerset county council has brought all the former districts down with the sinking ship.”

Cllr Jeremy Newmark, of the District Councils’ Network (DCN), said: “Many new large unitary councils have experienced crippling financial problems. Claimed savings promised by the proponents of mega councils lack a serious and robust evidential base. Given that reorganisation will incur substantial upfront costs, we must be clear that any savings may not emerge for many years.”

A spokesman for the County Councils Network highlighted that there are “very specific reasons” for why certain unitary authorities are struggling, but that in cases such as Buckinghamshire, Cornwall and Wiltshire, unitarisation has been a success.

It’s not just the Telegraph reporting these concerns, as new estimates suggest council reorganisation could cost £50 million, or more, again related by Local Democracy Reporter Bradley Gerrard:

A fresh estimate of the cost of reorganising Devon’s councils suggests the process could be £50 million, but some figures predict it could be even higher. Mid Devon District Council believes the price tag for merging the county’s 11 councils into a smaller number of larger councils could be between £30 million and £50 million. Other estimates suggest reorganisation could be double that figure. The Local Government Association said areas that have moved to unitary structures have “relied heavily on reserves” and some estimates for one-off costs range from £25 million to £100 million.

The LGA said the government “needs to commit to funding up front to deliver on these reforms. It is imperative that any new unitary councils are financially viable, able to provide sustainable services for communities in the long term, and able to realise the benefits of the reorganisation proposals local areas themselves draw up.”