Local Government: Reorganisation
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to her oral statement on 5 February 2025 on English Devolution and Local Government, Official Report, Column 766, what the upfront costs are of local government reorganisation in each of the next three years.
Answered by Jim McMahon
The upfront costs of local government reorganisation will be a matter for local councils to consider as they develop their proposals for reorganisation. As set out in the English Devolution White Paper, a PWC 2020 report estimated that reorganisation of the then 25 two-tier areas to a single unitary would have a one-off cost of £400 million, with the potential to realise £2.9 billion over five years, with an annual post-implementation net recurring saving of £700 million.
It will be for the new councils to achieve the efficiencies identified in reorganisation proposals and subsequent detailed implementation and transformation plans while delivering high quality and sustainable public services to local residents and businesses. We are working with areas to understand the costs of taking forward proposals and implementation of new unitary structures.
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