Select Committee on Merits of Statutory Instruments Tenth Report


Tenth Report


Instrument drawn to the special attention of the House

The Committee has considered the following instrument and has determined that the special attention of the House should be drawn to it on the ground specified.

Draft Cheshire (Structural Changes) Order 2008

Summary: The Order provides for two new unitary local authorities to replace the existing county council and district councils in Cheshire from April 2009. The Government believe that the proposal will establish new and innovative local governance in Cheshire, combining strong, strategic councils and effective arrangements for empowering communities at the most local level. Evidence submitted to the Committee show that there is a clear division of views among the local authorities themselves who will of necessity be the motors of the proposed re-structuring; and also that there are particular concerns in the schools sector over the proposed winding-up of the county council. We understand the Government's wish to achieve an early resolution of uncertainties, but suggest that this be weighed carefully against allowing more time to prepare for the establishment of the new authorities.

The Order is drawn to the special attention of the House on the ground that it gives rise to issues of public policy likely to be of interest to the House.

1.  The Department for Communities and Local Government (DCLG) have laid this Order under sections 7, 11, 12 and 13 of the Local Government and Public Involvement in Health Act 2007 ("the 2007 Act"). An Explanatory Memorandum (EM), Impact Assessment (RIA) and summary of responses to a consultation exercise in March 2007[1] have also been provided.

PURPOSE OF THE ORDER

2.  The Order provides for unitary local authorities in the county of Cheshire with effect from April 2009. Two new non-metropolitan district councils are to be established: Cheshire East Council; and Cheshire West and Chester Council. The existing county council (Cheshire) and district councils (the boroughs of Congleton; Crewe and Nantwich; Macclesfield; Ellesmere Port and Neston; and Vale Royal; and the City of Chester) are to be wound up and dissolved.

3.  The Order provides for the election in 2008 of a "shadow" authority for each of the two new districts. The main function of each shadow authority will be to prepare for the transition in April 2009 to single-tier local government in its district. Pending elections to the shadow authorities in 2008, preparations for transition to the new structures are to be the responsibility of the existing district councils and the county council, working through two joint committees (one for Cheshire East and the other for Cheshire West and Chester). The joint committee for Cheshire East will consist of representatives of the County Council and the East Cheshire district councils. The joint committee for Cheshire West and Chester will consist of representatives of the County Council and the West Cheshire district councils.

BACKGROUND

4.  This is the sixth structural change Order which DCLG have laid under the 2007 Act. We drew the first five such Orders (relating to Cornwall, County Durham, Northumberland, Shropshire and Wiltshire) to the special attention of the House in our Seventh Report of this Session.[2] In that Report, we summarised the process which the Government had followed before bringing forward these Orders, including the publication of the White Paper entitled "Strong and Prosperous Communities" in October 2006, the parallel issue of an "Invitation to Councils in England" ("the Invitation") to submit proposals for unitary structures, and the passage through Parliament in 2006-07 of the legislation which became the 2007 Act.

5.  In the case of the latest Order, the EM refers to the Government announcement on 25 July 2007 that it was minded to implement nine unitary proposals which, it considered, had a reasonable likelihood of achieving the outcomes specified by all the criteria set out in the Invitation. As regards Cheshire, two proposals had been included in the stakeholder consultation exercise launched in March 2007: a proposal from the county council for a single unitary county council; and a proposal from a number of the district councils for a two-unitary Cheshire. The July 2007 announcement made it clear that, while the Secretary of State took the view that both proposals might well meet all the criteria set out in the Invitation, she was minded to implement the two-unitary proposal as she considered that proposal "more likely to deliver to a greater extent the long-term outcomes around strategic leadership, neighbourhood empowerment and value for money and equity on public services".

6.  On 18 December 2007, after further consideration of relevant representations and other information, the Secretary of State announced her decision to proceed with the two-unitary proposal (which is the subject of this Order), for the reasons previously given.

CONSULTATION

7.  The summary of responses to consultation provided by DCLG shows that views about the different options - two unitary authorities, one, or no change - were divided. As noted above, Cheshire County Council proposed a single unitary authority; the two-unitary solution was first proposed by Chester City Council, and then supported by Ellesmere Port and Neston, Macclesfield, and Vale Royal Councils; Congleton, and Crewe and Nantwich, Councils voiced concerns about both unitary proposals. The summary acknowledges that the single unitary authority proposal was supported by many respondents representing the education, voluntary and community, and business sectors, and also by the great majority of members of the public who expressed a view.

COMMENTS MADE TO THE COMMITTEE

8.  Against this background, and mindful of the fact that in this case the final decision between competing proposals had been taken only in December 2007, we considered it appropriate to extend an invitation to interested parties to offer us comments on the proposal in the Order. We suggested that comments could focus particularly on the process of preparation for transition to the new unitary authorities. We did so bearing in mind that the Order proposed that two new authorities should be created to take over responsibilities from seven existing authorities, and that the new authorities should come into existence some 15 months after the Order was laid before Parliament. We received a large number of comments, which are reproduced as an appendix to this report.

9.  We asked DCLG if they wished to provide additional information about the process of preparation beyond that which is contained in the EM. Their further submission describes the arrangements that have been put in place already, and states that "it is the Department's judgement, having regard to the circumstances of Cheshire, the arrangements for implementation for which provision is made in the draft Order and the matters described above, that - whilst implementation will present challenges - the prospect is, if the draft Order is approved and made, that strong, strategic councils, and effective arrangements for empowering local communities will be achieved in Cheshire by 1 April 2009."

10.  The comments which we have received from Ellesmere Port and Neston Borough Council, Macclesfield Borough Council,[3] and Vale Royal Borough Council[4] stress that the six district councils and county council are now fully engaged, at both officer and Member levels, in developing the transitional change programme. They are at one in expressing the view that "the Order as proposed and the implementation arrangements which are now at an advanced stage will achieve the objectives of establishing strong, strategic councils and effective arrangements for empowering local communities from the proposed date of April 2009."

11.  The Western Cheshire Primary Care Trust (PCT) has also written in support of the Order. In particular, the Trust has commented that "by working with local Primary Care Trusts at such an early stage, the new authority and the Primary Care Trust will both be able to engage with our local population on any proposals to ensure local ownership and participation. The draft Order seems to provide a framework which will facilitate such discussions as well as allow strong and strategic councils to be established."

12.  However, other comments which we have received are less supportive, and this is notably the case with the other local authorities affected by the proposed re-structuring:

  • the Executive of Chester City Council has confirmed its commitment to "working to ensure that the transition to the new authority is as painless as possible for the residents of Chester and Cheshire", but it considers that "a further year for transition would enable a more considered response to ensure potential risks are identified and mitigated";
  • Congleton Borough Council have referred to the judicial review which they sought of the proposals for unitary authorities and to a number of concerns which underlie their position. They have commented that "the need to bring in the expertise of the County to develop the proposal submitted by Districts and the impossibly short timescale for an almost unprecedented reorganisation provides too high a risk to the performance and effectiveness of key services and should be reconsidered." Crewe and Nantwich Borough Council have written to endorse the comments made by Congleton Borough Council and to set out a number of additional concerns with the current proposal;
  • Cheshire County Council have written to draw attention to difficulties that they see in relation to the timing and achievability of the proposal, as well as what they describe as inadequate finance, and the inappropriateness of lead arrangements for the new unitary authorities, and also to question the extent of stakeholder support for the proposals. As regards the issue of whether the process envisaged is likely to achieve the objectives identified by the Government, from the proposed date of April 2009, the Council have said that "the candid answer is that the process is highly unlikely to achieve those objectives by the date stated."

13.  We also received separate comments from Cheshire County Councillors, which they put forward on behalf of children's services in Cheshire as members of the Children's Services Authority. They commented that "the dis-aggregation of one authority to build two will in reality bring huge disruption to Children's Services, and especially to outcomes for children", and they considered that achieving the stated objectives "seems highly unlikely under the present proposals and transitional arrangements and particularly the timescale, and certainly less than likely than a single unitary authority built around the County Council as a continuing authority."

14.  Mrs Gwyneth Dunwoody, MP for Crewe and Nantwich, wrote to us to set out a range of concerns about the proposals in the Order. The concluding paragraph of her letter of 12 February 2008 offers a summary of the position:

"Significant concerns remain amongst my constituents and local representatives about the elections to the 'shadow' authorities to take place this year; the Department has yet to give details as to how this complex system will work. This has caused alarm and apathy amongst many of those who were previously dedicated to Cheshire; the lack of support for the new arrangements and the total disregard of the views of Cheshire residents, coupled with the lack of information as to how these new arrangements will impact Cheshire's services and democracy will clearly not achieve the objectives of establishing strong, strategic councils, and effective arrangements for empowering local communities, from the proposed date of April 2009."

15.  Mr Martin Bell, who served as MP for Tatton between 1997 and 2001, also wrote to us to emphasise the extent of opposition to the proposals among many of his former constituents, and to stress that there was particular concern about the uncertainty which the re-structuring would bring to Cheshire's schools.

16.  This concern was demonstrated by a joint submission to the Committee from the Chairs of the Cheshire Secondary and Primary Heads Associations, the Chair of the Cheshire Schools Forum, the Chair of the Cheshire Association of Governing Bodies, and the Chair of the Cheshire Association of Special School Heads. The authors of the submission commented that "the timescale for implementing the (still vague) changes to the local education authority is hasty. We are concerned that rushed through change in relation to education will end up in worse services and poorer outcomes for Cheshire's children." We had a separate set of comments from Mrs Diana Morrison, a Primary Teacher Representative, which reiterated this concern.

17.  The Cheshire Fire Authority wrote to us to express the view that "it is both inconsiderate and naive of the Government for the Order to be issued without explicitly recognising the impact on organisations which draw their Members from the affected Authorities, such as ourselves and the Police Authority."

18.  Finally, we also received comments which raised doubts about the timely achievability of the objectives proposed by the Order from the Cheshire Association of Local Councils; the Cheshire Community Council; Mrs Helen Carey, Chair of the Cheshire Local Strategic Partnership between 2002 and 2006; and Mr Will Charlton, a former councillor with Vale Royal Borough Council. In addition, Mrs Carolyn Wilde, for the Cheshire Federation of Women's Institutes, wrote to voice the Federation's concerns with the present proposal and its preference for a single unitary authority solution.

CONCLUSION

19.  The Department have re-affirmed their belief that implementation of the proposal for two new unitary authorities will establish new and innovative local governance in Cheshire, combining both strong, strategic councils and effective arrangements for empowering communities at the most local level. A number of the stakeholders who have commented to us have argued for a different approach to local government re-structuring in Cheshire, but we have not taken this argument as the focus of our consideration of the draft Order.

20.  Instead, we have looked at the process of preparation for the establishment of the two new authorities in April 2009. What emerges from the comments received that there is a clear division of views among the local authorities themselves who will of necessity be the motors of the proposed re-structuring. On the one hand, Ellesmere Port and Neston Borough Council, Macclesfield Borough Council, and Vale Royal Borough Council have voiced their confidence that an effective re-structuring can be achieved by April 2009. On the other, Cheshire County Council, Chester City Council, Congleton Borough Council and Crewe and Nantwich Borough Council consider that the timescale is too short and risks damaging the provision of services. We have also been made aware of the concerns felt in the schools sector, with the proposed winding-up of the county council

21.  We recognise that creating two new authorities to run some of the most complex services, such as child protection and adult care, must pose particular challenges. We understand the Government's wish to achieve an early resolution of the uncertainties caused by re-organisation, but suggest that this should be weighed carefully against allowing more preparation time for the new authorities to be established, bearing in mind the complexities that have been identified.


1   See: http://www.communities.gov.uk/documents/localgovernment/pdf/550256  Back

2   HL Paper 34 Back

3   Macclesfield is the designated "lead authority" for the proposed new unitary authority of Cheshire East. Back

4   Vale Royal is the designated "lead authority" for the proposed new unitary authority of Cheshire West and Chester. Back


 
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