07 January 2005
Ministers are considering a reorganisation of local government in England but no firm decision has yet been taken to introduce unitary authorities, it was confirmed this week.
The Office of the Deputy Prime Minister told Public Finance that the ten-year strategy for local government would consider structures for the future.
A series of consultation papers, addressing community leadership, neighbourhood renewal, performance measurement and the future of local services, will be published this year. These will float the possibility of a structural shake-up paving the way for unitary government.
But a spokeswoman for the ODPM denied that ministers had already decided to press ahead with reorganisation, which would be bitterly resisted by town hall leaders.
'Anything that looks to the future will inevitably consider structural issues,' she said. 'But the documents are not going to say, "we're scrapping such-and-such a council".'
She went on: 'We're not saying we're going to keep the status quo and just tinker around the edges. But nor are we going to set out a dramatic new vision for local government. This is more a discussion of the possible ways forward.'
The Treasury's Gershon review, which has identified billions of pounds in potential efficiency savings, is spurring the government on by advocating that councils join up back-office functions and organise themselves into procurement consortiums.
Ministers are thought to favour moving away from the two-tier system of district and county authorities that exists in many rural areas, towards the creation of fewer, but bigger, councils.
In the smaller shire areas that would most likely mean scrapping district councils and setting up unitary county authorities. But in the larger shires, county authorities would be abolished and their district councils combined to form 'super-districts'.
The Local Government Association said it was 'genuinely surprised' by suggestions of an imminent local authority reorganisation.
Sir Jeremy Beecham, the LGA's vice chair, told PF that Deputy Prime Minister John Prescott had previously given assurances that a shake-up was not on the agenda, and dismissed any such moves as an unnecessary distraction.
'The greatest need at the moment is undoubtedly to get the local government finance system right,' he added.
Privately, LGA officials were dismayed by the news and said any attempts to 'reinvent the wheel' would be a 'hugely retrograde step'.
The organisation was scarcely more enthusiastic about plans to give local communities powers to run services such as street cleaning and neighbourhood wardens.
The proposals, which will be formally unveiled at a conference starting on January 31 in Manchester , were outlined by Prescott, who said they would complement councils, not supplant them.
Beecham, however, warned of the danger of atomising services at a time when greater integration is being urged. 'We want devolution of power to town halls and through town halls but not bypassing town halls,' he said.
PFjan2005
