Ministers did not review the cost of merger of the English Council

The UK government has not analyzed the cost of the largest reorganization of the councils in England for decades, the BBC has learned.

Deputy Prime Minister Angela Rener said that “one important amount” can be saved by merging the councils in 21 areas.

Rener’s department, local government ministry, commissioned by the County Council Network (CCN) is based on its cost estimates on 2020 reports, stating that £ 2.9bn could be saved in five years.

But CCN has since revised its analysis and now says that restructuring can not save and actually spend money in some scenarios.

CCN chairman Tim Oliver said that the local government’s restructuring “could unlock billions in efficiency savings, which could be reinstated in frontline services”, if it was distributed on the right scale.

Oliver said that the CCN supported the government’s reforms, but said: “We are concerned over the possible costs of restructuring where the proposals seek to change two-level systems with several small unitary councils.”

The councils involved in the reorganization are presenting plans to create new local authorities in their areas.

Some councils have proposed the establishment of several small unique officers in their areas.

For example, in Essex, the County Council has proposed three new unique officers in the region.

The government will decide which proposals will be taken forward and next year most of the councils will intend to inform.

A government spokesperson emphasized restructuring “will improve services and save taxpayers’ money”.

Under preliminary guidance, local government minister Jim McMahon said that the councils should “get” for the entire region related to the establishment of the same level of the local government.

McMahon said that these new single councils should aim to cover a population of 500,000 or more.

But the minister has ever made it clear that guidance was a “guide theory, not target” to the councils to show the size of a population of 500,000 or more.

“We understand that there should be flexibility,” the minister said.

The ministers spoke on the ability to save money as one of the main benefits of restructuring the local government.

Speaking to MPs in June, Rener said: “The reorganization of the local government will have better results for residents and save a significant amount that can be reinstated in public services and improve accountability.”

But its department insisted that in response to the BBC’s information request, it was not necessary to commission the different in-house analysis of the cost of restructuring at public expenses.

Government savings estimates PWC were based on data produced by an accounting firm, and Analysis by CCNA cross-party lobist group.

A PWC report in 2020 estimated a potential savings of £ 2.9bn in five years if all councils in two-level areas were replaced by single officials.

But in This year update analysisThe CCN said that the reorganization may cost £ 850m in five years and 58 new councils based on a minimum population of 300,000, no savings can be made to 58 new councils created in all 21 two-level areas.

“No long-term efficiency savings will be given under this scenario, which means that it would be more efficient to maintain the current two-level system in England,” said CCN’s analysis.

Oliver stated that CCN analysis showed that “300,000 will create hundreds of millions of new uncertain costs for local taxpayers to the county areas divided into unique councils with small populations”.

The councilor said that the government should ensure that new councils have the right size to gain capacity, improve capacity and face financial tremors.

Oliver said, “Failure to do so was already under pressure care services and at a time when many county and district officials could reduce their funds,” said Oliver.

The Network of Zilla Parishad (DCN) said that before the reorganization, the funding that faces the local government can have poor results.

Sam Chapman-Alan, president of the Zilla Parishad network, said, “It is surprising that the government has not made any independent analysis before joining the largest reorganization of the councils for 50 years.”

“The mega council, with a population of half million people or more, can be imposed on areas when there is no independent, up -to -date evidence to justify councils of this size, and many large councils created earlier are struggling financially.”

DCN said that it was not too late for the government to analyze the optimal size of the councils to maximize possible savings.

Housing, communities and local government ministry said: “Councils across the country have also told us that bringing services simultaneously under one roof means that the residents join it when they join it, while they need the most, while clear structures mean who really know who is responsible for distributing their services.

“The councils will also develop their own proposals how the restructuring works best in their areas, as we fix the foundation of the local government through our plan for change.”