Hertfordshire councils face £1.1m shortfall in government funding for reorganisation plans
Local government restructure put on hold as costs review begins
Hertfordshire councils have already spent around £1.5 million developing plans for local government reorganisation. However, only £400,000 of these expenses have been reimbursed by the Government, leaving a £1.1 million shortfall covered by the councils' existing budgets.
On 7th September, the Secretary of State for Housing, Communities and Local Government, Angela Rayner, announced a "pause" in the reorganisation process, affecting Hertfordshire and 13 other areas.
The £1.5 million in direct costs does not include contributions from existing staff across the 11 councils in areas such as finance, legal support, HR, communications, and programme management.
Hertfordshire’s Local Government Reorganisation Programme confirmed the expenditure, highlighting costs for programme management, consultancy, recruitment, and other related expenses. Whilst £400,000 was received from the Government during the initial submission phase, the anticipated additional £1 million per unitary council has not been received, forcing councils to use their existing budgets.
Despite these financial strains, councils have prioritized service delivery for residents, advocating for adequate funding from the Government. They emphasize their commitment to preserving services and continue to appeal for support to complete the reorganisation programme.
In response to inquiries, a Ministry spokesperson recognised the significant efforts of councils and partners, stating that they will review council costs as part of the pause and consideration for the next stage.