Agenda item

Cabinet Member: Leader and Local Government, ICT, Business & Customer Services

Forward Plan Ref: 2016/091

Contact: John Courouble, Research Intelligence Manager, Tel: 07968 242072

Report by County Director (CA6).

In early May Oxfordshire County Council appointed Grant Thornton UK LLP to consider how local government could be reorganised to reduce costs, improve service outcomes, support economic growth, enhance local engagement and empowerment, and provide strong and accountable leadership.

This followed the appointment of PwC to conduct a review commissioned by Oxford City Council on behalf of Oxfordshire's Districts into proposals launched by District Leaders in February to restructure local government in Oxfordshire.

This paper enables Cabinet to consider the outcome of the two reports, and inform consideration of the next steps in response to them.

Cabinet is RECOMMENDED to consider the proposals set out in the PwC and GT reports, together with any comments or recommendations following Performance Scrutiny Committee on the 13 Sept, with a view to taking forward the most appropriate proposal for Oxfordshire. 

In early May Oxfordshire County Council appointed Grant Thornton UK LLP to consider how local government could be reorganised to reduce costs, improve service outcomes, support economic growth, enhance local engagement and empowerment, and provide strong and accountable leadership.

This followed the appointment of PwC to conduct a review commissioned by Oxford City Council on behalf of Oxfordshire's Districts into proposals launched by District Leaders in February to restructure local government in Oxfordshire.

Cabinet considered a report on the outcome of the two reports. Cabinet also had before it a supplementary report that included the outcomes of consideration of the two reports by the Performance Scrutiny Committee on 13 September 2016.

Councillor John Howson, local council for St Margaret’s, referred to the earlier report by Ernst & Young that had identified savings and he commented that had action been taken then, then savings could have been made sooner. He reflected on the 2016/17 budget process and the context of the two current reports. He believed that efforts should be made to make progress as speedily as possible. There was support from town and parish councils for a unitary council with greater local democracy. Oxford City needed the greatest political freedom possible.

Councillor John Christie, Shadow Cabinet Member for Local Government, Business, ICT & Customer Services strongly supported the recommendations contained in the supplementary report. The Labour Group welcomed the publication of the two reports. He commented that both reports argued that the status quo would not deliver the best services and that change was needed. He noted that a single unitary delivered the biggest savings and that any other solution would continue the confusing two tier system and weak decision making. He welcomed the robust delegation to localities. He expressed displeasure at the District Council press release attacking the County Council’s budget management. In calling on all councils to work together he called on district councils to work with the County Council in putting residents first.

Councillor Liz Brighouse, Chairman, Performance Scrutiny Committee, commended the way in which the process was being managed with stakeholder engagement and an opportunity for scrutiny before Cabinet consideration. She detailed the process followed at Performance Scrutiny Committee where all councillors had been invited and had had the opportunity to put a question or speak at the meeting. She noted that PwC had not attended but their report was available. There had been concern during the Performance Scrutiny Committee that even as the meeting went on the District Councils had released a press release. The Committee had considered the reports at length and the conclusions and recommendation were in the papers before Cabinet today. She hoped that there would be serious consideration of the services for the people of Oxfordshire and that this would be at the heart of any decision. She noted that with the Ernst & Young report there were three reports from three of the most renowned companies in the local government field all saying the same thing and it would be foolish to ignore that message.

Peter Clark, County Director, presented the reports setting out the background and context to the reports and updating Cabinet on the current position locally and nationally. He also referred to Option 6 as set out in the Grant Thornton report.

Councillor Hudspeth, Leader of the Council, commented that it was right that Cabinet consider the two consultant’s reports and that both reports agreed that the status quo was not an option. He highlighted Option 6 which did devolve power to the appropriate level. He stated that it was naïve to think that it was possible to go back to the devolution deal, asking central government for additional funding when it was obvious that savings could be delivered locally by a unitary council. The reports made clear in what areas there was scope for closer working. He had made it very clear that he was happy to talk to all parties about this, including tax payers and service users.

All Cabinet Members supported the recommendations highlighting the benefits of a unitary council for the services in their respective areas of responsibility. Several Cabinet Members commented on the local elements of their services. Concerns were expressed if strategic services were broken up amongst a number of unitary councils.

Councillor Carter, Cabinet Member for Local Government, Business, ICT & Customer Services added that he had attended most of the road show presentations to town and parish councils and although the issue of remoteness had been raised, geographical remoteness had not figured strongly. What seemed to matter was the local relevance of a service. He felt that there was no clear understanding of what 3 or 4 unitary councils might mean and that they were only units, abdicating responsibility for some services.

Councillor Brighouse having listened to the discussion added that it was important to remember that County Councillors were at the grassroots representing people across the County. Local County Councillors had responsibility for the most disadvantaged people in Oxfordshire. She was annoyed that outside the County Council there seemed to be no understanding of what county councillors did in their communities. She expressed concern that a combined authority would hand decisions on the most sensitive of services to a quango of a few people. She felt that it would be useful if the benefits outlined by Cabinet Members in relation to their services could be put on the web site.

In response to a question from Councillor Hudspeth, Peter Clark outlined how a combined authority worked in theory but noted that it was unclear at this stage how it would work in practice.

Councillor Hudspeth moved the recommendations on the addenda.

RESOLVED:                        to:

(a)       consider the evidence set out in the PwC and GT reports, and the opportunity both reports present to save £100m over five years by moving to a single unitary for Oxfordshire, and the need for local structures within that; and

(b)          having regard to the recommendations of Performance Scrutiny, ask officers to work with stakeholders, including the public, to develop proposals for a single Oxfordshire unitary council, and in particular further explore the proposal set out in the Grant Thornton report known as option 6, whereby local areas within the county could make decisions for their own area, within an overall budget and policy framework set at the strategic level.