Consultation on options for local government in Hampshire Parish and Town Councils Briefing 25 June 2016
Overview of presentation • Devolution and reorganisation – journey so far • The Deloitte Commission – why and what • Proposed consultation • Next steps • Your views
Unitary Authorities • Full range of local government functions – e.g. combines waste collection (district function) and disposal (county) – Around Hampshire: Isle of Wight, Portsmouth, Southampton • Can be achieved by ‘reorganisation’ of county and district councils into single unitary council – e.g. Cornwall, Wiltshire, Shropshire, Durham, Northumberland (2009) • Potential to operate more efficiently • Wide range of performance • Optimum size? – “300,000 to 700,000” Government policy myth – Greater importance of leadership and capacity
Combined Authorities • Required for devolution of powers from Government • Separate and additional legal authority • Bring together councils to pool capability and receive new devolved powers • New Government insistence on directly elected Mayors • Councils continue to operate autonomously – initially • Council’s highways and transport powers are transferred to the Mayor • Other powers can and will be transferred in time
Combined Authority proposals in Hampshire • Hampshire and Isle of Wight combined authority bid (September 2015) now in abeyance following February vote against directly-elected Mayor • Solent bid – filled a vacuum - (March 2016) awaiting Government confirmation • Heart of Hampshire bid more recently developed • Neither has been subject to any consultation • Potential to split the county – hence our dilemma
Proposed Solent/ Heart of Hampshire combined authorities (incl directly-elected Mayors)
The County Council’s dilemma • Support and join Solent and Heart of Hampshire to secure deals and short-term partnership? – By doing so agree two Mayors – And validate the split of the county – now and in future • Or refuse to join, be seen to scupper deals and invite hostility and a legislative reaction? • “Where is HCC’s positive response?”
National reorganisation debate • Two-tier system (and smaller unitaries) perceived as increasingly unsustainable • Government explicitly conflating devolution with reorganisation in response • Amendments to 2016 Act allowing fast-track reorganisation • Tensions released across England eg Oxfordshire • County Council studies on case for county unitary – Oxfordshire, Leicestershire, Cumbria and Buckinghamshire – Dorset close to reaching a unitary solution
Hampshire context • HCC has staunchly defended two-tier system • ‘Greater Portsmouth’ letter to Secretary of State, signed by four districts, put unitary reorganisation firmly on the agenda • Other councils known to be analysing options • HCC has a duty to consider how circumstances have changed • Deloitte commission – our “positive response”
Deloitte commission • Evidence-based analysis of financial and non- financial benefits • Wide range of options studied – as suggested by CLG • To provide a robust platform for County Council’s deliberations
Option A: HIOW Unitary
Option B: County and Cities
Option C: County and Island
Option D: County Unitary
Option E: Two Unitaries
Option F: Four Unitaries
Option G: Five Unitaries
Deloitte’s conclusions • Higher savings with larger options (A to D) • Higher disruption with smaller options (E to G) • All best options avoid splitting the county (partly because of the costs and risks of service disaggregation) • Best-performing option across both financial and non- financial assessments are Option B (County and Cities) and D (County Unitary) – Both offer council tax cut for vast majority (80-90%) – B saves £453m over 10 years but is highly disruptive – D saves £390m, costs least to deliver and is least disruptive – On savings per head D outperforms B (£29 vs £25 a year) • Best option for Hampshire residents: D (County Unitary)
‘Hampshire Council’: Key facts • Creates immediate council tax cut for most households in Hampshire • Net savings of £41m a year to public purse – permanently • One-off costs are less than any other option (£180m as opposed to £400m+) • Saves more per household than any other option • Causes less disruption than any other option – only the county area is affected, with minimal impact on critical upper-tier services such as child protection and highways maintenance • £10m a year saved on senior management • £4m a year on councillor expenses and allowances • Option to create Solent/Heart of Hampshire councils (Option E) saves less than any other
Is ‘Hampshire Council’ too large? • A unitary ‘Hampshire Council’ would serve 1.3m people living across 1500 square miles • Hampshire County Council already serves 1.3m people living across 1500 square miles • Performance and capacity are amongst the highest in England • Adding district services and budgets is a modest step – a unitary Hampshire Council would only have about 20% more capacity than HCC
Number of Councillors and Total Budgets Across County & Districts County Districts Spend Councillors £0.18bn 78 HCC Districts (19%) Districts Hampshire County Council Districts (81%) District Councillors County Council spend £0.76bn 488
Opportunities for Parish and Town Councils • A single unitary offers great strategic benefits – but is definitely not a ‘one size fits all’ solution • Opportunity to radically improve local democracy, empower local communities • Chance to extend parish & town councils across whole of unitary area • Significant powers and budgets would be passed to local area committees of unitary councillors • Offer of deeper devolution through ‘parish or town deals’ where parishes want to take up the offer Unitary local government is simpler - parish and town councils work directly with a single unitary council
Possible future split of functions?
Implications of ‘Hampshire Council’ • Would have to be agreed by Secretary of State • Results in abolition of County Council and district councils • New ‘Hampshire Council’ inherits assets, contracts, staff etc • In theory ‘Hampshire Council’ could be established by 2018, but likely to be over a longer timescale • Build on established county-level strengths and opportunities – most obviously waste • Allows still potentially for a HIOW combined authority
Announcement on 13 th May • Cllr Perry announced a consultation on the future of local government in Hampshire, covering: – Elected mayors – Combined authorities – Unitary council(s) • “Hampshire County Council will not endorse the Solent/Heart of Hampshire proposals unless/until residents say so through the consultation” • Cllr Perry wrote to inform MPs, Leaders and others • Deloitte study published simultaneously • Subsequently agreed at Cabinet on 6 th June
Proposed consultation • Will cover combined authorities, mayors and unitary council(s) in one go • The consultation paper will not promote a preferred option • Done in partnership if possible • Available online, in libraries etc • Duration sufficient for town and parish councils to respond
We will be consulting … • Hampshire Association of Local Councils • Individual Town and Parish Councils • County Councillors • District and Unitary Leaders and Councillors • Members of Parliament • LEP Chairs • Local businesses • National Park Authorities • Police • Fire • County Council Network • Ministers • University Vice Chancellors • Health • And … .
• The residents of Hampshire
Next steps • Consultation with Hampshire residents over summer/ autumn – Have your say! • Parish and town council briefings • County Councillors and officers available to attend meetings • Maintain open dialogue with Government and partners • County Council decision in the autumn following the end of consultation • Recommendation sent to Government • Secretary of State to finally decide
Summary • HCC does not seek reorganisation – it has been forced by the actions of others, including Government. • Combined Authorities are a form of reorganisation with an inevitable conclusion that dismantles the County Council. • HCC must and will think and act for the whole of the county. • HCC is not wedded to itself or its history. It is profoundly concerned to sustain some of the best local authority essential services in the country – evidentially so. • HCC would rather abolish itself in order to achieve the right solution than sleep walk towards the wrong one. • HCC is also determined to listen first and decide later – not the other way around.
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