Agenda item

To consider approving the Partnership’s proposal to Government for Local Government Reorganisation in Greater Lincolnshire (report of the Leader enclosed).

Consideration was given to the Report of the Assistant Director – Corporate which sought approval for the Partnership’s proposal to Government for Local Government Reorganisation in Greater Lincolnshire.

Following extensive engagement with partners, communities, businesses, town and parish councils, and all councillors, the Leader of the Council presented to Cabinet a proposal for the future of local government in Greater Lincolnshire.

The Leader advised that the proposal, developed by Boston, East Lindsey, and South Holland Councils, set out a bold vision for the region, meeting the government’s invitation and addressing long-standing challenges such as deprivation. It proposed the creation of two new financially stable unitary councils designed to deliver for the future.

The Leader reported that during engagement across Lincolnshire, transport had emerged as a major barrier to wellbeing, affecting access to education, healthcare, and social opportunities. This was reinforced by feedback from students who highlighted affordability and connectivity issues. The Leader confirmed that the proposal included a plan to address these concerns.

The Leader explained that the approach had started from a blank canvas, considering what structure would best meet the government’s criteria. Unlike other proposals focused on preserving the status quo, this proposal sought to create a new landscape for councils that would better serve communities.

The Leader noted that concerns had been raised about risks to adult and children’s services. He confirmed that the proposal focused on aggregation of these services, guided by expert advice and examples from other areas, ensuring safety and continuity.

The Leader advised that using independently verified financial assumptions and a midpoint approach to avoid optimism bias, the projected savings were £221 million over 10 years, with a four-year payback on initial investment which was significantly more than alternative proposals.

The Leader stated that the new authorities would work closely with the Mayoral County Combined Authority, complementing its role and noted that all partner councils were considering the final proposal during the week, ahead of submission on Friday 28^th November.

The Leader confirmed that the proposal was considered to best meet the government’s criteria and deliver the greatest benefits for communities in Greater Lincolnshire.

Those present acknowledged the significant work undertaken in preparing the documentand agreed that it represented a positive step towards achieving the intended objectives. Concerns were expressed regarding trust in central government and the potential impact of any savings on future grant funding, which might leave authorities in a similar financial position under a different structure.

Those present highlighted uncertainty over funding for road repair and maintenance within Lincolnshire, given the current poor condition of many roads.

The proposed reduction in democratic representation was regarded as detrimental, and questions were raised about the location of Area Committees or Panels, with an expectation that most would be situated in the north of the county. This could lead to significant travel requirements for members and the public. While digital solutions were acknowledged, concerns remained about accessibility and office locations.

Those present recognised the need to maximise potential benefits but cautioned that certain aspects, particularly office locations and travel distances, might not deliver as anticipated.

The Leader acknowledged that reducing councillor numbers was a clear government objective, which was considered regrettable. Numbers were expected to decrease from approximately 440 across Greater Lincolnshire to between 140 and 160, depending on the proposal adopted.

Concerns were noted about increased responsibilities for councillors and their ability to engage effectively with Parish Councils and local communities.  The Leader explained that significant consultation had taken place with the Lincolnshire Association of Local Councils and Neighbourhood Committees. He outlined proposals for committees involving statutory partners such as Police, Fire, and Health Services, alongside Parish Council representatives and elected members from the new unitary authority, to bridge the gap between large unitary structures and smaller parishes.

Addressing financial implications, the Leader noted uncertainty around government budgets and potential hidden challenges during transition. He cited partnership experience, where ambitious savings targets were achieved, notably £38m against a £42m target within four years through senior staff reductions and improved procurement. He confirmed similar opportunities for savings under a unitary structure.

The Leader expressed appreciation for the efforts of Leaders and teams involved, emphasising extensive consultation and the importance of accountability to residents.

While acknowledging that no proposal was perfect, he stated that the current option offered the best balance for residents and reiterated that the focus must remain on serving residents rather than councillors. He concluded that financial pressures made change essential and expressed hope that Government would act swiftly, as the current situation was unsustainable.

Concerns were raised that the changes felt forced by government and could lead to loss of local identity and representation. Reduced councillor numbers might result in an older demographic due to time commitments and low remuneration. The need to support parish councils was emphasised. While partnership experience was seen as an advantage, worries about local representation persisted.

The Leader confirmed plans for a working group to establish a town council for Spalding to retain local identity and highlighted the importance of making meetings accessible for younger people, including remote attendance, to avoid councils becoming dominated by older members.

It was noted that speculation since the Government’s announcement had created uncertainty for staff and residents. Those present reiterated their responsibility to represent residents, many of whom lead complex and vulnerable lives, and stressed the importance of considering this when making decisions. Reference was made to the success of councillor designated budget and the value of small payments to community groups.

Concerns about local democracy and representation across all age groups were discussed and it was all agreed that they did not want councils to become dominated by those who are wealthy or retired and suggested employer support for councillors to balance employment and council duties.

Concerns were raised about proposals for a single large authority, particularly around management, control, and security risks. While larger organisations offer data-sharing benefits, they also increase vulnerability to external access. Attendees agreed that a more localised approach would provide greater security and highlighted extensive experience with Public Sector Partnership Services Limited (PSPS) over sixteen years, including rapid integration of Boston’s services, as evidence of capability to manage complex issues.

Further concerns were expressed about parish councils assuming additional responsibilities, given existing challenges in maintaining membership and retaining clerks. It was suggested that all parish councils would find this difficult.

Concerns were also raised about meeting times and councillor workloads, with the view that full-time councillors might become inevitable. In response, the Leader clarified that parish councils were under no obligation to take on additional responsibilities unless they wished to do so. Feedback from parish councils and the National Association of Local Councils had been positive, with some larger parishes expressing interest in assuming more responsibilities. Smaller parishes were reassured that they would not be required to do more than at present, and any decision to take on additional duties would be subject to discussion with the relevant unitary authorities.

DECISION:

That Cabinet:

a)    Approves the proposal for Local Government Re-organisation (Appendix A) for submission to Government.

b)    Delegates authority to the Assistant Director – Corporate, in consultation with the Leader of the Council, to make any changes/additions that might be required between the Cabinet meeting and submission to Government; and to submit the proposal.

(Other Options considered)

·       Not to submit a proposal - this was discounted as the Council has a clear vision for Local Government Re-organisation that it wishes to submit by the deadline.

·       To consider an alternative proposal – the Greater Lincolnshire for All proposal is considered to provide the best opportunity for Greater Lincolnshire.  Other options set out in Appendix A are not considered to deliver the same opportunities.

Reasons for decision:

·       To enable the Council to submit its proposal for Local Government Re-organisation by the 28th November 2025 deadline.