Agenda item

(To receive a report from George Spiteri (Strategic Commercial and Performance Manager) which outlines the high-level analysis undertaken on possible unitary models as they would apply to Lincolnshire)

Consideration was given to a report by the Chief Executive which outlined the high-level analysis undertaken on possible unitary models as they would apply to Lincolnshire.

At 12.08pm, Councillor M J Hill, joined the meeting.

George Spiteri (Strategic Commercial and Performance Manager) introduced the report and explained that the current two-tier local government structure for Lincolnshire was originated in 1974 but that recent reforms in a number of other counties had since removed the two-tier structure in favour of unitary authorities.

Where the two-tier structure remained, its inherent tensions, most evident in respect of services such as waste, transport and planning, required complex 'interfaces' to be negotiated but which were rarely efficient and frequently expensive.  Other services were duplicated, for example economic development and tourism.  Political differences between authorities had made focussed local direction of some services, plans or programmes difficult and occasionally impossible with additional friction and frustration.  Finances had also been strained, particularly in this decade of austerity.

The Local Government Association (LGA) within their 'Future Funding Outlook for Councils 2019/2020' demonstrated that the overall funding shortfall nationally would be £9.5bn.  The funding gap for Lincolnshire County Council alone could reach £75.5m by the end of this decade.

In consideration of these pressures, the creation of more unitary authorities was increasingly viewed as a self-evident means of improving the effectiveness of local government and increasing value for money.  Unitary proposals in respect of Buckinghamshire, Oxfordshire and Dorset had been referred to in recent months but others were also being prepared.

The Committee was invited to ask questions, during which the following points were noted:-

·       When asked why this report had been brought for the Committee's attention, the Chairman confirmed that she had requested the report in an email, copied to the Committee, on 10 February 2017.  It was requested that the report include an outline of the analysis undertaken on unitary options in Lincolnshire for the rationalisation of service operations.  The intent had not been to provide a business case but an options appraisal on unitary authorities at this stage;

·       The Chairman also confirmed that modelling of a potential unitary authority for Lincolnshire had not been requested as it would be for Members to provide suggestions on future modelling. The report was intended to generate some thought and debate at this stage only;

·       Some Members noted concern that the Committee had not requested this report or set Terms of Reference and were therefore disappointed that a counterargument had not been put;

·       Information provided within the report had been taken from evidence of other councils who had transformed into a unitary authority.  These transformations had taken between two and three years and at an approximate cost of £20m.  A considerable amount of modelling would be required before this could take place;

·       Evidence suggested that nearly 50% of county councillors were also district councillors and parish councillors.  A model needed to be developed in each area to ensure an appropriate level of representation was found for residents but it was acknowledged that this may be a subjective argument;

·       Most services would be delivered by local staff in local areas but would be employed by the same administration.  It was suggested that the majority of savings would be made from upper tier management;

·       The Committee was assured that consideration of a unitary authority was not just to save money but to improve the quality of services for residents;

·       A high level analysis of savings for all back office functions would be done as it was suggested that a saving from seven teams could potentially be made;

·       The central point for a potential unitary authority in Lincolnshire caused concern for some Members as it was thought that Lincoln was not the central point of the county;

·       A report which documented the research undertaken by the County Council Network and a report by Ernst and Young (referred to on page 127 of the agenda pack) were considered helpful to assist Councillors with future debate.

The Committee agreed that a report be presented to the Overview and Scrutiny Management Board in the new Council term following discussions between Group Leaders and relevant officers.  It was requested that this report should include relevant options and to give focus to localness rather than remoteness.

RESOLVED

1.    That the report and comments be noted; and

2.    That a further report be presented to the Overview and Scrutiny Management Board following consideration by Group Leaders and relevant officers.