Agenda item

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 were given a presentation from Angela Rayner MP and Jim McMahon MP.

The Leader of the Council continued to speak to colleagues, particularly in North Kesteven District Council, South Holland District Council and Rutland County Council, with a look towards the most practical outcome for the area.

The following points were highlighted during debate:

·       There were concerns about the possibility of a ‘super authority’ absorbing all existing district councils in Lincolnshire.

·       £75,000 was around half the funding that both East Lindsey District Council (ELDC) and South Holland District Council (SHDC) had put forward towards LGR proposals.

·       The Leader of the Council continued to correspond with the Leader of Rutland County Council and Alicia Kearns, MP for Rutland and Stamford.

·       Rutland County Councillors were not of one mind regarding reorganisation; they were however keen to retain their ceremonial status as the smallest historic county in England.

·       Some of the work involved in LGR was specialist.

·       Some authorities have said they will be able to share data relevant to LGR.

·       Fire and health services were not currently aligned. Lincolnshire currently had two separate fire authorities.

·       To achieve genuine LGR for the betterment of the public, no options should be ruled out at this stage. Currently there were four published options
– the South Lincolnshire and Rutland bid (SKDC’s preferred approach)
– an ‘eastern’ bid (led by ELDC and SHDC)
– a City of Lincoln bid (including surrounding villages, and colloquially known as the ‘Lincoln doughnut’)
– and a Continuing Authority bid (LCC’s preferred approach).

·       Briefings would take place for all-Councillors to include feedback from the LGA conference.

·       Information from MHCLG was that local Police and Crime Commissioners (PCCs) and fire authorities did not have to align at this stage. A ‘co-terminus’ future could be acceptable but such arrangements would need to be covered within the report. If Greater Lincolnshire and Rutland County Council came together there would be three PCCs.

·       A consultants’ report on Adult Social Care (ASC) had been shared with SKDC officers, as well as a District Councils’ Network (DCN) report on Children’s Services. SKDC needed specialist advice in areas not currently provided by District Councils (including ASC and Children’s Services) but may not require such advice on financial modelling and data collection.

·       SKDC could not formally consult with local businesses as this function was reserved for government; however, engagement with the business community was possible.

·       One more LGR session with parish councils was due to take place in Stamford on 22 July. Senior officers and the Leader of the Council had committed to another round of town and parish council meetings on LGR. A key message was that there was no option to keep SKDC in its current form. In the four sessions delivered so far, the Leader had not heard anyone express a preference for a single unitary authority to cover Lincolnshire.

·       Most Greater Lincolnshire leaders had met on 2 July 2025. Officers had not been informed of the intention of ELDC and SHDC to begin public engagement week in the week commencing 14 July 2025.

·       Cumbria previously consisted of six districts and one city council which had been reorganised. Their ‘Implementation Reserve’ was £19 million, split into £3 million per authority. This did not include further costs incurred later in the reorganisation, related to transformation and redundancies. Any anticipated savings were strategic and longer term.

·       The border between SKDC and Rutland makes delivery of some services dysfunctional now - a merger could only improve the situation.