South Holland District Council to set aside £175,000 to fund plan for local government reorganisation

Council chiefs will set aside £175,000 to support the development of a final proposal for a major political shakeup.

Ahead of a meeting next Tuesday (May 6), South Holland District Council’s cabinet has been recommended to create an indicative budget, should it need to engage external expertise to assist in developing the final local government reorganisation proposal, due on November 28.

The council is also working with East Lindsey District Council to share resources and reduce costs.

Following the Labour government's announcement to overhaul local government - including replacing two-tier systems like Lincolnshire’s (where there are county and district councils) with new unitary authorities covering populations of 500,000 each - local authorities across the country were invited to submit interim proposals by March 21. Feedback is expected in early May.

Both South Holland District Council (SHDC) and East Lindsey District Council (ELDC) submitted a proposal to split Greater Lincolnshire into two north/south unitaries.

The first would cover the existing South & East Lincolnshire Councils Partnership sub-region (which is South Holland, Boston and East Lindsey), plus North and South Kesteven, while the second would include the City of Lincoln, West Lindsey, North Lincolnshire, and North East Lincolnshire. This proposal was also one of six submitted by West Lindsey District Council.

According to a report, the £175,000 requested from South Holland District Council will fund the necessary expertise to develop the final proposal, including tasks such as creating the proposal document, conducting data and financial analysis to support the evidence base, and carrying out a communications and engagement programme with residents, businesses, and wider stakeholders, including public sector partners.

A portion of the budget will also be needed for project management and support. While detailed discussions with suppliers are yet to take place, officers anticipate the £175,000 will be apportioned as follows:

*Approx. £35,000 for project management

*Approx. £140,000 for proposal development, including the evidence base, financial analysis, governance arrangements, and community/stakeholder engagement.

"The Government, via a ministerial statement, confirmed it would allocate £7.6 million to support the development of Local Government Reorganisation proposals," the report reads.

"The funding would be shared by 21 areas. It isn’t yet clear how this will be allocated. Notwithstanding the Government funding commitment, allocating a budget now positions the council to move quickly on developing a final proposal, if it chooses, once Government feedback on the interim plan is received in early May.

"The budget would be funded from the forecast outturn variance or reserves if called before late May."