Getting rid of small councils ‘could bring £3bn savings’

SCRAPPING hundreds of small councils could save almost £3billion, a report has claimed.

Research for the County Councils Network found that the creation of larger unitary authorities would “drive forward the devolution and levellingup agendas” of the Government.

By replacing 213 small councils with 25 overarching bodies, the report said £2.94billion of savings could be made.

However, the report warned that creating multiple unitaries – which combine the powers of county and district councils in an area – could cost money and create “risks” for children’s services.

The Pricewaterhousecoopers research suggested that the “likelihood of performance dropping is high”.

David Williams, chairman of the County Councils Network, said: “The findings show there is a compelling financial case for the creation of more unitary counties where councils seek reorganisation.

“They will provide significant savings to support front-line services and the stability needed to safeguard care services as we continue to mitigate the impact of coronavirus.

“Crucially, it will create councils of the necessary size to support local economies recovering from the pandemic and drive forward the devolution and levelling-up agendas.”

The Government is expected to publish its own proposals to reorganise local government in a devolution White Paper in September.

Robert Jenrick, the Communities Secretary, said that it would “set out ambitious plans for more mayors, greater powers and financial incentives to be given to councils who embrace reform, and set out the important role we want local councils to play in economic growth in the future”.

Simon Clarke, the regional growth minister, said that any area that wanted to have an elected mayor would have to create streamlined unitary authorities.