22 June 2007
The Department for Communities and Local Government this week accused three councils of wasting taxpayers' money over a legal challenge against Ruth Kelly's plans for more unitary authorities.
DCLG officials reacted with dismay to a High Court decision on June 18 that will allow three authorities to proceed with a legal challenge against the minister's plans to reduce the number of two-tier authorities in England.
Kelly's Local Government and Public Involvement in Health Bill, currently working its way through Parliament, proposes at least eight new unitary authorities. Sixteen unitary bids have been shortlisted by the DCLG, leaving the future of 80 councils under consideration.
Kelly wants to expand unitaries to reduce costs to taxpayers and to make councils more effective.
But three authorities that could be abolished following county council bids for unitary status – Harrogate Borough Council in North Yorkshire, Congleton Borough Council in Cheshire and Shrewsbury and Atcham Borough Council in Shropshire – appealed to the High Court. They claim that Kelly did not have the power to invite unitary bids because her Bill has not become law.
At a pre-hearing on June 18, Mr Justice King said it was 'arguable' that Kelly lacked the power and that the appeal should be heard urgently.
Privately, one DCLG official told Public Finance: 'This appeal is a complete waste of local taxpayers' money and the councils' time.'
Even if the councils won their case, the source claimed, it was unlikely to prevent a reorganisation because Kelly's Bill was likely to become law this autumn.
PFjun2007
