Plans to restructure councils across England could deepen the sector’s financial crisis, putting vital services and staff at risk, says UNISON today (Monday).
Ministers last year announced their intention to reorganise local government structures in England by replacing many ‘two-tier’ council areas with unitary authorities.
The changes are designed to reduce spending and make it easier for residents to understand where responsibility lies for services. Savings will be reinvested in communities, the government says.
But many councils have deep concerns about the upfront costs of the proposed changes especially when some local authorities are effectively bankrupt, says UNISON.
Town halls also have reservations about disruption to key services and job losses, as well as the challenge of restructuring while devolution to mayoral combined authorities is also underway, the union warns.
Authorities in the first 21 areas earmarked for change were asked to submit their proposals for reorganisation by March of this year.
Their responses and further conversations with Whitehall have raised concerns about how councils will bear the cost of the overhaul, says UNISON. This could be as high as £100m in some areas, according to the Local Government Association, with significant costs to upgrade IT and revamp entire departments.
There is also anxiety over how NHS, social care, housing and transport reforms will affect the financial stability of new unitary authorities.
The extra £3.4bn by 2029 promised to councils in last week’s spending review was a good start to Labour’s ambition to boost councils’ financial health, says UNISON.
But after a decade and a half of austerity under successive Conservative-led governments, the new cash will be needed simply to maintain and restore essential services, the union says. It shouldn’t be swallowed up by a costly reorganisation.
Without further investment, struggling councils could be forced to increase their borrowing or sell public assets such as libraries or leisure centres to the detriment of local services, the union adds.
UNISON is calling on ministers to work closely with councils and unions to ensure staff and the public don’t pay the price for costly changes. Compulsory redundancies should be avoided and wages, pensions and working conditions safeguarded, says the union.
UNISON general secretary Christina McAnea said: “Councils and their staff endured 14 years of budget cuts under the Conservatives.
“With the coffers almost empty, local authorities will struggle to bear the cost of complex reforms when demand for social care, children’s services and housing is all soaring.
“That poses a risk for thousands of local government jobs. Crucial services on which some of society’s most vulnerable people rely could also be disrupted.
“Any council reorganisation must be backed by proper central government funding, protection for workers and the support of residents and staff affected.”
Notes to editors:
– UNISON’s annual two-day local government conference began yesterday at ACC Liverpool, Kings Dock Street, Liverpool L3 4FP and continues today. This will be followed by the union’s national conference, which takes place from tomorrow to Friday (17 to 20 June). Issues to be discussed include the future of the NHS, the employment rights bill, migrant workers, apprenticeships and local government reorganisation. Further details can be found here. Christina McAnea’s speech to the main conference will be at noon on Wednesday.
– In March, Christina McAnea warned that local government reform shouldn’t be used as a cover for job cuts. The press release can be found here.
– UNISON is the UK’s largest union, with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy. They are employed in the public, voluntary and private sectors.
Media contacts:
Anthony Barnes M: 07834 864794 E: a.barnes@unison.co.uk
Mark Conrad M: 07809 623703 E: m.conrad@unison.co.uk
