Local government leaders have strongly criticized ministers’ plans to merge English councils, branding them “ill-thought-out,” “insane,” and a “bizarre diversion” that will fail to address the severe financial crisis facing local authorities.
According to an annual survey conducted by the Local Government Information Unit (LGIU), the majority of senior councillors and executives believe the proposed restructuring will be costly, time-consuming, and ineffective in delivering savings. Instead of alleviating financial pressures, many councils are preparing for widespread service cuts and tax increases, with up to 19 town halls at risk of effective bankruptcy in the coming year.
The government defended its decision, arguing that restructuring would create “streamlined, more accountable local government” and end the inefficiencies of the current two-tier system. A spokesperson for the Ministry of Housing, Communities and Local Government stated: “Reorganisation is a tough choice, but the right one. We are making £69bn available to councils and working with them to drive change.”
Ministers claim that replacing numerous smaller district councils with larger “mega councils” will enhance economic growth, efficiency, and accountability, despite reducing the number of elected local politicians. However, the LGIU survey found overwhelming opposition among council leaders, many of whom fear the changes will divert attention from more urgent financial challenges.
A senior district council leader dismissed the plan, saying: “Reorganising local government to save money is insane. Councils have already endured a 40% funding cut since 2010.” Another official warned that the reorganisation “will be a distraction from balancing the books for all councils.” A deputy mayor described the reforms as “rushed, ill-thought-out, and potentially undeliverable.”
Despite Labour making no manifesto commitment to reorganising councils, the party’s move has sparked confusion and concern, particularly among Labour councillors and MPs. Critics warn that merging councils with target populations of 500,000 could shift left-leaning areas such as Norwich, Brighton, and Oxford into larger, more Conservative-leaning regions.
Jonathan Carr-West, LGIU’s chief executive, criticized the process, saying: “The vast majority of council leaders feel the government has not provided enough clarity, meaningful involvement, or realistic timeframes.”
The survey also found that from April, 94% of councils will raise council tax, and nearly nine out of ten will increase fees for services such as car parking, waste collection, school meals, and burials. Additionally, 63% of councils plan to cut spending on public services, including parks, libraries, and social care.
One council leader warned that residents are “paying more for worse public services” as councils struggle to balance rising costs with declining government funding.
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