Agenda item

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

Forward Plan Ref: 2016/056

Contact: Amber Sparrowhawk, Senior Policy Officer Tel: (01865) 815212

Report by Chief Policy Officer (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.

Grant Thornton will share an interim report with the county council for Cabinet’s consideration, ahead of publication of a full report by the end of July 2016.

The Cabinet is RECOMMENDED to consider Grant Thornton’s interim report and ask officers to:

(a)          draw up proposals for the optimum future structure of local government in Oxfordshire taking account of the full findings of the Grant Thornton study once received

(b)         consult with county council members, residents of Oxfordshire and other key stakeholders to help shape the proposals; and

(c)          thereafter prepare a bid to be reviewed by Cabinet later in 2016 in advance of submission to central government.

The Leader reminded Cabinet that local government experts Grant Thornton were commissioned to conduct an independent study of the options for local government restructuring. That work was ongoing and was due to be completed by the end of the month. He stated that the covering paper explained the background, and that Cabinet Members would all be aware of the lively debate surrounding options for unitary local government.

The Leader noted that Cabinet was due to consider an interim report by Grant Thornton, which was always going to be published as a late paper. However, it had been decided not to publish the interim report at this time.
He read a brief statement that had been agreed by all the councils, which he hoped was self-explanatory:

With a new Prime Minister and new Secretary of State now in place and a number of pressing economic and policy issues to work through at national level, we recognise that it is sensible to take the time to understand how the government intends to take forward devolution and local government reorganisation in Oxfordshire and other areas before presenting further proposals for reforming public services and changes to council structures in the county.

Following discussions with civil servants last week all the Oxfordshire councils have agreed to work together to discuss areas of common ground, assess potential options and establish whether we can agree a way forward building on the work we have both done to date. We have agreed to postpone publication of both the Grant Thornton and PWC studies, and pause plans for consultation until these plans have been jointly developed.

Our aim has always been to seek investment in housing and transport infrastructure; to improve skills training and develop the local economy. This investment is needed if we are to reach our potential, and therefore agreeing a way forward with government is a high priority for all of us.

The Leader continued that it made sense for us to get together with all the councils in Oxfordshire to look for common ground before we publish our reports. The government has told us that it does not favour one option over another. It has simply said that it will not choose between different options and wants a proposal with broad support among the key partners. He added that he was not going to say anything more at this stage because it was important that we don’t do anything that could undermine that commitment to work together. Although not publishing the Grant Thornton report today, the recommendations to Cabinet contained in the paper are still valid. They do need to be understood in the context of joint working. He moved the recommendations amended in the light of the statement.

Councillor Christie, Shadow Cabinet Member for Local Government, Business, ICT & Customer Services, recognised that the pause was on the advice of DCLG and that it was in the best interests of Oxfordshire residents to try and work out a solution. However there was an expectation that the reports would still be published. He added that the current system was not working and what was needed was a more effective and efficient single strategic body with locally devolved decision making. This was a clear principle and the Labour Group believed that a Unitary body for Oxfordshire would best deliver this. He spoke against the idea of a combined authority arrangement which would reintroduce a two/three tier process. He added that in his experience smaller unitary councils were inefficient.

Councillor Webber, Leader of the Liberal Democrat Group, supported the comments from Councillor Christie but added that to maintain integrity it was important to wait for the evidence. He referred to the financial constraints local government was under and felt that the big annual savings needed could only come from significant change and fewer councils. Whatever structure was agreed savings would still need to be made. The pause should not be for too long and he hoped that efforts were being made to ensure that DCLG were aware that this mattered.

RESOLVED:           in the light of the Leader’s statement to ask officers to:

(a)            draw up proposals for the optimum future structure of local government in Oxfordshire taking account of the full findings of the Grant Thornton study once received

(b)            consult with county council members, residents of Oxfordshire and other key stakeholders to help shape the proposals; and

(c)             thereafter prepare a bid to be reviewed by Cabinet later in 2016 in advance of submission to central government.