Agenda item

To consider the attached report of the Chief Executive.

The Chief Executive and the Director of Finance, Housing and Community presented the report on the Business Case for a Single East Kent Council.

The presentation set out the financial position facing the Council and the case for a forming a single East Kent Council composed of the areas currently served by Canterbury City Council, Dover District Council, Shepway District Council and Thanet District Council.

The Chief Executive advised that doing nothing in the face of the financial pressures facing the Council was not an option and the Council would have to do something to balance its budget in future.

Members were advised that the proposals were not for the creation of a Unitary Council but rather a new District Council serving the area of the four authorities. In governance terms the proposed new authority would be run on the Committee Model as opposed to the Leader and Cabinet Model with area panels for planning and licensing decisions.

Members were advised that one of the challenges facing the creation of a new council would be the decision as to the level for Council Tax to be harmonised at given the variation in levels currently charged in the four authorities. Harmonising at the level of the lowest of the four authorities (Dover) would be financially challenging whereas harmonising at the level of one of the other authorities would be more sustainable. This would potentially result in an increase for residents of the Dover District and reductions for residents of other authorities depending on the final level of harmonisation. However, that decision was one for the Single East Kent Council and not any of the existing Councils.

In equality terms, the biggest challenge would be the harmonisation of the Council Tax Reduction Scheme.

The Medium Term Financial Plan (MTFP) would include provision for the one-off costs involved in creating the new authority and there would be proposals for the handling of each authorities reserves as part of the new authority.

Members would be asked at the meeting of full Council to be held on 22 March 2017 to make a decision on undertaking a consultation and engagement exercise between 24 March 2017 and 19 May 2017. The consultation would be undertaken using ORS and would include consultation with town and parish councils. There was some concern expressed by members of the Committee over the size of the consultation, the lack of face-to-face consultation events and whether those people consulted had enough information to make informed responses.

A presentation on the consultation and engagement exercise would be made to Members on Friday 17 March 2017. In response to concerns that the consultation clashed with purdah for the Kent County Council elections the Chief Executive stated that there was sufficient time after the end of purdah for Kent County Council to make a response to the consultation.

The Council would be involved in  2 further decisions in respect of the creation of a Single East Kent Council. The first in July 2017 would be for the Cabinet after receiving guidance from the Council to resolve to make a submission to the Department for Communities and Local Government (DCLG) to ask for the creation of the new authority and the second in Autumn 2017 would be for the Council to dissolve Dover District Council having received the necessary order from the DCLG. It is proposed that the elections for the new Council would be held in May 2019.

It was recognised that as part of proposals for devolving powers to parish council level there would need to be assistance provided to build capacity and there would be a cost to the parishes. Where neighbourhood plans were in place some planning matters could be devolved and parishes could be federated to deal with bigger issues.

Members discussed concerns over fairness as part of the creation of a single East Kent Council and the settlement in terms of debts and assets between the four authorities. In response, it was stated that there were no cast iron guarantees for transitional arrangements but it was expected that the Secretary of State with the backing of local Members of Parliament would provide relief and the Council would still have the choice in the Autumn 2017 not to proceed if it was unhappy with the arrangements.

The issue of democratic deficit and where the new authority would be based was raised as part of concerns that the new authority would be more distant from constituents. In response Members were advised that the Committee system would deal with some of the concerns over democratic deficit and that it was not known at this point where the new authority would be based.

It was expected as part of the creation of the new authority, Dover District Council would lose 8% of it existing staff.

Councillor B J Glayzer advised that the concerns that he prompted his earlier motion were related to doubts as to whether the report was fit for public consultation. However, following the discussions at the meeting he would withdraw his motion.

RESOLVED: That it be recommended to Cabinet:

(a)  That the dates of the consultation events be circulated to all members of the Council.

(b)  That the Scrutiny (Policy and Performance) Committee be provided with the full detail of the consultation results.