Issue - meetings

Purpose of report

An update on the latest position with Local Government Reorganisation (LGR) following receipt of the Interim Proposal Feedback letter.

Decision

That Cabinet:

1. Noted the latest position; the proposed timing and confirm the approach set out for the development of the final business plan.

2. Approve the creation of a budget provision of £75,000 to be funded from the General Fund Local Priorities Reserve to procure external support in order to compile the final business plan.

Alternative options considered and rejected

The Council had no obligation to submit an LGR proposal to the Ministry of Housing, Communities and Local Government (MHCLG). There would be no legal penalty for not doing so, but the Government stated that LGR would proceed even if no proposal was submitted. If the Council does not submit a proposal, it would lose the opportunity to shape and influence LGR to deliver on the strategic interests of South Kesteven’s residents.

Reasons for the decision

LGR would have a significant impact on the residents of South Kesteven; therefore, an update on the developing policy programme was presented. A robust LGR proposal must be high quality, evidence-based and offer a thorough analysis of the various options to detail the impact of the Council’s preferred LGR configuration on residents, services and businesses. Whilst the Council would endeavour to do as possible internally and with partners, it was recognised that some external expertise and support would add value.

A feedback letter from MHCLG had been received on 3 June 2025 regarding South Kesteven’s interim LGR proposal. Furthermore, in-person feedback was received from senior MHCLG officials on 2 and 4 July 2025. Both sets of feedback was general to the Greater Lincolnshire area rather than specific to the South Kesteven bid. MHCLG did not indicate a view on the merits or the features of the proposals submitted, which would have been useful for SKDC officers and members.

None of the proposals within Lincolnshire had been ruled out at this stage, which meant that the inclusion of Rutland County Council in a new authority remained an option. Any proposal would need to set out clear rationale for its findings.

A population of 500,000 was a guiding principle and not a strict target. Criteria are not weighted. Decisions would be judged in the round having regard to guidance and available evidence.

Government funding of £357,000 had been allocated to Greater Lincolnshire to support full proposal development. The Council would continue to work collaboratively to develop a full proposal for LGR that was the most beneficial – short, medium and long term - for both the residents and businesses of South Kesteven, and the wider geography of Greater Lincolnshire and Rutland County Council.

The Chief Executive, Portfolio Holder for Planning and the Leader of the Council all attended the Local Government Association (LGA) Conference last week. Much discussion was around LGR and how it might play out. The Leader spoke to other Leaders, Councillors and officers from across the country (and Lincolnshire). Those present  ...  view the full minutes text for item 19