Agenda item

Members considered the latest updates on Local Government Reorganisation (LGR).

In introducing the report, the Leader of the Council made the following points:

·         Government had embarked on a policy of LGR in ‘two tier’ governance areas. The current two-tier system was being replaced with a combination of a strategic Mayoral Authority and larger councils below this. This would lead to fewer councillors, who arguably would be less accountable and accessible to those they represented. It would also mean larger workloads for councillors.

·         This was the first local government reshuffle for over 50 years.

·         The government wanted new unitary authorities to be responsible for a population of 500,000 people. It was unclear from where this target had been derived. If you simply divided up Lincolnshire by its current population you would get two new authorities.

·         It was an option to create a new authority for a combined population approaching 400,000. Examples were given of both Rutland County Council and SKDC whose populations of c40,000 and c150,000 respectively would not qualify as viable new authorities as they were not close to the 400,000-population threshold.

·         SKDC had been asked to put together proposals for a unitary authority having consulted their local neighbours by 21 March 2025. SKDC had first been notified that this was a possibility on 16 December 2024, with a letter from the Minister on 5 February 2025.

·         Government were asking for an outline business case, described as a ‘touching point’. Once proposals for a new authority were agreed locally, the next step would be public consultation, with a final submission by 28 November 2025. Government had not yet indicated when authorities would get feedback on their initial interim proposals.

·         SKDC would submit their proposal in March, and there would likely be other proposals from Lincolnshire authorities that would not align with each other. It was unclear yet where efficiency savings would come from.

·         It was hoped by government that LGR in Lincolnshire would be delivered by 2028. However, with competing proposals the scenario for the county was not clear. The area could submit multiple competing proposals, which could include proposals across existing county lines. Strong justifications would be required.

·         If the proposal was to split an existing local authority area, there would need to be a strong justification and involvement from the Boundary Commission.

·         The Chief Executive and Leader of the Council were having ongoing conversations with leaders and chief executives from neighbouring and local authorities regarding potential models and data sharing.

·         Initial discussions had outlined that SKDC did not wish to be aligned with Peterborough City Council, City of Lincoln Council, East Lindsey District Council and Melton Borough Council. The most agreeable authorities for alignment were North Kesteven District Council, South Holland District Council and Rutland County Council.

·         All member briefings were delivered to SKDC councillors on 10 March. There was due to be an Extraordinary Full Council meeting on 18 March.

Note:  It was agreed to reduce the length of councillors’ speeches to three minutes maximum.

The following points were raised by members:

·         Although the existing two-tier governance arrangements would be abolished, the replacement structures for Lincolnshire would also be two-tier, with the Mayoral Combined County Authority being the ‘upper tier’.

·         It was unclear yet whether larger councils would be more efficient than smaller ones. It was also unclear whether there were plans by government to consult with residents.

·         There was a huge amount of information that was currently speculative. It would be more beneficial to wait for the Extraordinary Full Council meeting on 18 March before announcing anything to the media.

·         Focus groups and further meetings available to members of the public would help shape how local government should be organised.

·         If LGR was imposed on existing authorities, then SKDC needed to make provision for this scenario.

·         The Leader of the Council had spoken to, amongst others, the district and county leaders across Lincolnshire, Peterborough City Council, Rutland County Council and Melton Borough Council.

·         There was the option to create a new authority which encompassed current authorities outside of Lincolnshire. Rutland County Council was not part of a devolved Mayoral Authority and therefore had a number of options. They were also part of the Local Enterprise Forum (LEP) which had been merged into the MCCA.

Note:  Councillor Rob Shorrock left the meeting and did not return.

·         The new principal authority would gain ownership of SKDC’s current assets once the reorganisation was completed. The MCCA would act as the strategic authority.

·         Councillors were accountable to those that had taken part in the district elections of 2023. They were due to have a say in 2027 on how councillors represented their views. There was now the potential to undo this accountability.

·         Costs for this proposed change must be found from SKDC’s assets and reserves.

Note:  Councillor David Bellamy left the meeting and did not return.

·         It was likely that LGR would not fill the local government funding gap. A report by Grant Thornton ‘The Move to a Unitary Authority’ outlined that the savings supposed to happen did not, even 3-4 years following the reorganisation. It had taken the civil service a long time to migrate three authorities, therefore, it was hard to believe the capacity was there to meet the 2028 deadline for Lincolnshire.

·         The end position might be similar to that of the pre-1974 position of Kesteven and Lindsey.

·         Rutland was a high Council Tax/high cost for services authority. Any authority merging with Rutland County Council would have to consider cross-subsidisation.

·         There have been elections postponements this year for those authorities in the ‘priority’ or first wave of the program. Current thinking was that whichever new authorities represented Lincolnshire would move to shadow organisation elections in 2027 dependent on the size of the new strategic authority. Officers and leaders would continue to work with MHCLG colleagues over this time.

·         Extent of the change proposed will have an impact on all, residents, councillors and officers.

·         Any changes cost money. LGR would encompass IT changes, buildings and staff. SKDC would have to start looking at which buildings would and would not be needed going forward.

·         Non-statutory services included, parks, leisure amenities and libraries. The Local Plan would require a revisit of these areas in the context of a much larger authority.

Note:  Councillors Sarah Trotter and Rosemary Trollope-Bellew left the meeting and did not return.

·         This version of devolution had continued piecemeal since the breakup of Humberside in the 1990s. The current reorganisation of Northamptonshire was another example.

·         SKDC had a range of reserves and investments. It had also enjoyed financial stability over the years as Heads of Finance had remained in post at the authority for a long period of time.

·         There would be significant costs attached to rebranding.

In summing up, the Leader of the Council outlined that government had been repeatedly asked to explain the 500,000-population figure and what figure close to this they would accept. Nothing had yet been received in response. SKDC would move forward with a solution they believed to be best. An authority responsible for less than 500,000 people would be acceptable if it had a reasonable case. It was believed there was a good argument for this in Lincolnshire where there are large swathes of rurality.

The City of Lincoln Council wanted to be part of a larger local authority, but numbers in greater Lincoln did not add up to close to 500,000 people. If areas were sliced up, the Housing Revenue Account (HRA) implications were complicated. It was perceived that it was easier for government to keep the building blocks of District Councils together and intact.

The council tax at SKDC was the lowest between themselves, North Kesteven District Council, South Holand District Council and Rutland County Council. However, as Rutland was a county it was not quite a fair comparison as there were economies of scale within adult and children’s social care.

The Leader of the Council had met with representatives from Northamptonshire – their Councils were still progressing through a previous reorganisation. An example was given of planning issues in the county – Planning Committee was split into several areas.

Having been moved and seconded, and following a vote it was AGREED:

DECISION

That Full Council:

1.    Note the current position on Local Government Reorganisation.

2.    Agrees to receive an interim proposal regarding Local Government Reorganisation for South Kesteven District Council at an Extraordinary Council Meeting on 18 March 2025.