08 September 2006
Town halls need to turn their attention to the practicalities of reconfiguration should local government boundaries be redrawn, consultants are warning.
Although the focus on the forthcoming white paper has been on what form local government should take, consultancy firm Deloitte this week said that the success of any reorganisation rested as much on how it is done as the shape of the new structures.
There is much speculation and debate as to the content of the white paper. More unitary authorities might be introduced in shire areas and an extra tier of local government might be introduced at the 'city region' level.
Mike Turley, head of government and public sector at Deloitte, told Public Finance that whatever the white paper's contents, the same principles were applicable. 'There will be a transition and a transformation process to go through,' he said. 'Some hard lessons emerged from last time local government was reorganised.'
Deloitte conducted detailed interviews with 19 senior managers who had been involved in the last reorganisation exercise in 1996, as well as evaluating experiences in other countries such as Canada, New Zealand and Denmark.
Its report, published on September 7, concludes that the process of reorganisation has three main phases: a review phase, when the government together with local authorities determines the exact proposals for reform; the preparation for transfer of responsibilities; and the creation of new, reformed authorities.
The transition phase is singled out as being the most difficult to manage. Deloitte said the government should encourage authorities to set up a joint transition committee to prepare for change, and grant new councils more control over the financial transactions of outgoing ones. A property commission should also be used to resolve disagreements about the allocation of assets.
The report highlights the East Riding of Yorkshire, created out of the last local government reorganisation, as an example of how the process can be used to transform and improve services. Despite a difficult relationship with the outgoing county of Humberside, East Riding set clear goals, established a new corporate culture and is now a three-star authority.
'Reorganisation is not an end in itself, but a potential means to achieve improved services, greater efficiency and better accountability,' Turley said. 'Above all, reorganisation should be seen as an opportunity for authorities to introduce deeper reforms to working practices and services.'
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