All change in local government

Sep 24 2007 The Journal

Local government in the region is set for its biggest shake-up in decades. Muckle LLP’s head of public sector practice Alan Grisedale (right), looks at reasons behind it and likely implications.

THOSE of us who live in Northumberland or County Durham will be subject to new local authorities within two years. This was announced on July 25 by Local Government Minister John Healey following a 12-week consultation period and rigorous assessment of bids from councils against published criteria.

Mr Healey said nine proposals for unitary status were to go ahead, with the intention that all the proposed new authorities would be fully up and running by 2009.

For those of us with a few years under our belts, local government reorganisation is something that we have seen before and, as David Miliband highlighted in an article in December 2005, kicking off the latest shake-up, “debates about the shape, size and role of local government are almost as old as the councils themselves”.

So what does this latest plan for change in our communities mean for people here in the North-East? What (if any) impact will it have on our day to day lives? The main principles behind the move from two-tier local government to a unitary approach are:

The empowerment of local people and communities;

The improvement of local services;

The realisation of greater efficiencies; and

The delivery of improved economic prosperity.

It is these guiding elements that new unitary authorities for Northumberland and County Durham will be required to deliver as the district councils in these areas are abolished, and control of services across each council area becomes centralised.

The single common thread of course is savings. Those councils working towards unitary status believe that savings of £150m per year can be achieved which can be used to directly improve front line services or to reduce council tax bills. This is a significant claim, and only time will tell if the calculations, particularly around transitional arrangements, were correct.

Central Government states that it is not just a question of achieving value for money. So why the need to change? The current two-tier system of local government is accused of being inefficient and costly. For communities it can be confusing. For example if you consider a road through a village. The parish council may have responsibility for upkeep of the grass verge, the district council for cleaning the pavement and the county council for the road. It may not be seen as an important issue but each organisation maintains its own office infrastructure so back-office costs are multiplied and duplicated. What people want are efficient services and accountability.

But what are the costs of change, both financial and on our communities? County Durham estimate one-off transition costs of £12.4m to move from a two-tier to unitary system, with these costs being offset by an estimated annual saving of £21m. The community cost is more difficult to assess. Generally speaking, cost savings come about through job cuts, and implementation of a larger, more centralised supply chain. While this may benefit the wider community, its specific impact on people and small businesses in a particular locality should not be underestimated.

The recent Government White Paper Strong and prosperous communities said that “Citizens and communities want a bigger say in the service they receive and in shaping the places where they live”. Whether you live in an area subject to a new unitary authority or not, reorganisation and change is inevitable.