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Ministers didn't do cost review of council mergers

Ministers didn't do cost review of council mergers

Summary

The UK government did not conduct its own cost review for merging councils into single authorities, instead using a 2020 report from the County Council Network (CCN). This reorganization plan aims to save money, but updated analysis from the CCN suggests the changes might actually cost more. The government will consider proposals for reorganizing councils and plans to make decisions next year.

Key Facts

  • The UK government used a 2020 report from the County Council Network to estimate savings from merging councils.
  • The report initially predicted savings of £2.9 billion over five years by replacing two-tier councils with single authorities.
  • The County Council Network has updated its analysis, now suggesting the reorganization might not save money and could cost £850 million.
  • The changes involve merging councils in 21 areas into single authorities.
  • Some councils have proposed creating multiple smaller unitary authorities.
  • The government plans to decide which council restructuring proposals to approve next year.
  • A government spokesperson claimed the reorganization will improve services and save money for taxpayers.
  • Local Government Minister Jim McMahon emphasized a population size of 500,000 as a guiding principle for new councils but noted flexibility is allowed.
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