Agenda item

The Cabinet considered a report of the Chief Executive which presented the latest position in relation to local government reorganisation and advised of urgent action taken by the Chief Executive, using his delegated powers, to request that the Minister of State for Local Government and English Devolution agreed to the request to postpone the County Council elections until May 2026 to allow the Council to submit reorganisation proposals to Government by May 2025.  A copy of the report marked ‘Agenda Item 5’ is filed with these minutes.  A supplementary report, outlining the latest position following letters received from the Minister of State for Local Government and English Devolution on 5 February advising that the County Council’s request to postpone the election had not been granted and setting out the formal invitation to develop a proposal for local government reorganisation, is also filed with these minutes.

Members expressed their disappointment at the Minister’s decision not to postpone the County Council elections in May 2025, which would further delay the opportunity for devolution to Leicestershire.

RESOLVED:

(a)    That the urgent action taken by the Chief Executive under delegated authority to request the Minister of State for Local Government and English Devolution to postpone the County Council elections from May 2025 to May 2026 and to provide a clear commitment to devolution and reorganisation be noted;

(b)    That the letter from the Minister of 5^th February saying that he has decided not to agree to the request be noted, together with the invitation received from the Minister also on 5^th February to submit a proposal for unitary local government reorganisation and the accompanying guidance and assessment criteria, including the requirement to submit an interim plan to Government before 21^st March 2025;

(c)    That the Minister’s decision not to allow local government reorganisation in Leicester, Leicestershire and Rutland through the fast-track process, as jointly requested by the City Mayor, the Acting Leader of the County Council and the Leader of Rutland Council, has resulted in devolution to the area being further delayed with any estimated date for devolution currently uncertain;

(d)    That the criteria for unitary local government be noted and supported, including that a unitary authority must be the right size to achieve efficiencies (with the aim of a population of 500,000) ensuring value for money for council tax payers, improve capacity and withstand financial shocks; must prioritise the delivery, improvement and sustainability of services; that reorganisation should avoid unnecessary fragmentation of services such as social care; and that a unitary authority should enable stronger community engagement and should reflect sensible geography and a sensible economic area;

(e)    That it be noted that, following the publication of the English Devolution White Paper, a meeting of the Leaders and Chief Executives of the 10 councils in Leicester, Leicestershire and Rutland took place on 8^th January, at which no consensus was reached on unitary authority structure options and it was agreed to meet again after the receipt of the Minister’s invitation to submit proposals and the criteria to be followed;

(f)     That if consensus cannot be reached, it be noted that guidance on the interim plan recognises that it may contain more than one potential proposal for a unitary structure;

(g)    That this supplementary report and the original report be submitted to the meeting of the County Council on 19 February for information;

(h)    That progress on the interim plan be reported regularly to the Group Leaders.

REASONS FOR DECISION

The Council’s Constitution (Part 3, Section D) provides that the Chief Executive, following consultation with the Leader, may take urgent decisions between Cabinet meetings subject to this being reported for information to the next available meeting.

The Minister of State required that requests for postponement and clear commitment to devolution and reorganisation aims were submitted by no later than 10 January 2025.  The request had to be contained within a letter jointly signed by the Leaders of the requesting authority and neighbouring unitary councils.  A joint letter was submitted.  The Minister’s letter of 5 February confirms that the County Council’s request has not been granted.

The formal invitation to submit reorganisation proposals, received on 5 February, sets out clear criteria for the proposals.  It also encourages local authorities to work together to develop proposals, whilst recognising that there will be some cases when it is not possible for all councils in an area to jointly develop and submit a proposal, despite their best efforts. This will not be a barrier to progress, and the Government will consider any suitable proposals submitted by the relevant local authorities.

Although the taking of decisions relating to local government reorganisation are ‘Executive Functions’ and therefore a matter for the Cabinet, it is felt that, given the significance of the decision, it should be referred to the full Council for consideration and debate.