Decision details

This report seeks to provide an overview of proposals for Local Government Reorganisation (LGR) in Cambridgeshire & Peterborough and seeks to enable Members to make an informed decision over what, if any, response the Council wishes to make within the timescales and processes established by Government.

The Cabinet has

(a)  noted the various options that have been presented relating to Local Government Reorganisation for Cambridgeshire & Peterborough;

(b)  noted the criteria and process established by Government and that the Secretary of State will be the end decision-maker;

(c)  considered and commented on the various options against the criteria identified, noting that the various options will be incorporated into a single submission made on behalf of all Councils in Cambridgeshire & Peterborough;

(d)  considered the comments provided by the Overview and Scrutiny Joint Group and Full Council in respect of the proposals and the vote by Council to support any or none of the options presented.

(e)  determined that the Council wishes to support Option E (noting that the Council can only support one option);

(f)  delegated authority to the Chief Executive, in consultation with the Executive Leader of the Council, to write to the Secretary of State and other Leaders & Chief Executives within Cambridgeshire & Peterborough to communicate the Council’s decision (rec E);

(g)  delegated authority to the Chief Executive, in consultation with the Leader of the Council, to complete and finalise a Foreword for the final business case in support of Option E. (rec E);

(h)  based upon the final decision (rec E), delegated authority to the Chief Executive, in consultation with the Executive Leader of the Council, to liaise with other Leaders and Chief Executives to make any final amendments to the single submission for Cambridgeshire & Peterborough in advance of submission to the Government; and

(i)  delegated to the Chief Executive, in consultation with all Group Leaders and non-group aligned Members, to formulate and submit a response to any formal consultation on proposals for Local Government Reorganisation in Cambridgeshire & Peterborough.

As stated at the outset, given the significance of the matter, combined with the criteria established by Government, no formal recommendation is presented in respect of any given option.

This report does, however, identify the merits and challenges of the various options, along with other key factors for consideration, so that Members may make informed decisions.

Members are encouraged to consider the options presented and determine which option(s) if any, represents the most appropriate solution for the region. Recognising that of the Government criteria, “Criterion 1: A proposal should seek to achieve for the whole of the area concerned the establishment of a single tier of local government” establishes the need for a whole region solution across Cambridgeshire & Peterborough; as opposed to what is best for the future of local government in Huntingdonshire.

This report presents a comprehensive, well-evidenced and robust overview of the five main options for Local Government Reorganisation (LGR) in Cambridgeshire and Peterborough. Developed collaboratively by all seven councils, each option has been rigorously assessed against national criteria, local priorities, and independent expert evidence.

The options include North/South Split (Option A), Horseshoe (Option B), East/West Split (Option C), Three Unitary Authorities (Option D), and Huntingdonshire Three Unitary Authorities (Option E). Each option presents distinct strengths and challenges, particularly around financial resilience, service quality, and local identity. The report includes a comparative assessment and detailed appraisal of each option.

The report provides particular detail on the two options (C & E) which the Council is responsible for the preparation of. Members are invited to review the evidence and indicate their preferred option (if any) to inform the future decision of the Cabinet over which option (if any) should be put forward as part of the single proposal for Cambridgeshire & Peterborough, ensuring the region’s submission is both robust and aligned with local and national objectives.

The finance and resource implications of local government reorganisation and its implementation would be significant under any of the proposals. This information has fed into the business case development and consideration of factors such as cost of change and pay back periods. Some of this has been informed by outcomes from previous reorganisation and information provided from a range of sources including industry bodies and consultants.

Moving forward the resource implications would form part of an overall implementation plan and would need to be managed to ensure principles such as “safe and legal” are in place on day 1, as well as setting out proposals for transformation and how savings will be made. This will be further mitigated by the Council continuing to engage with other councils who have been through reorganisation, capturing lessons learned, and engaging with groups such as the Local Government Association (LGA), District Councils Network (DCN) and County Councils Network (CCN) as well as various consultancies who have also been involved previously and currently. The Council has also sought to work with relevant specialists as necessary to inform the business case development.

Beyond day 1, the new authorities would be responsible for the management of their own resources and finances, including staff, assets and buildings.

Notwithstanding whatever decision Council and the Executive reaches, there will be resource implications for the Council as we seek to manage Business As Usual, and undertaking ongoing preparatory LGR work whilst the Secretary of State determines the next steps. To this point this has been managed through internal resourcing, and employment of consultants/specialists as required, with funding provided through our existing budget framework and reserves. There has been some limited funding made available to Cambridgeshire & Peterborough from Government to facilitate the development of the single proposal. However, moving forward, there will be a need to continue to consider resourcing and how we work with partner councils to ensure best value for money.

LGR also represents a resource risk in respect of staffing, particularly in some key areas. This is reflected in our Corporate Risk Register around LGR.