Key Highlights
- Local government reform in Cambridgeshire and Peterborough will see the current seven councils replaced by larger unitary authorities.
- The reorganization is expected to lead to council tax harmonisation, potentially increasing rates for some areas.
- Two options are being considered: Option A with two unitary authorities or Option D with three authorities.
- Financial implications vary between the models, with Option A projected to deliver significant savings but may not fully address local needs.
New Local Government Structure in Cambridgeshire and Peterborough
In a move to streamline services and devolve more powers from Westminster to local areas, Cambridgeshire and Peterborough are set for a major shake-up of their local government structure. Starting from April 2028, the current seven councils will be replaced by larger unitary authorities under the Local Government Reorganisation programme.
Harmonisation and Potential Tax Increases
The reorganization aims to lead to council tax harmonisation, which means areas like Peterborough, known for having the lowest Band D council tax rate in the county, may see increased rates. Councillors heard that under Option A, Peterborough’s Band D council tax could rise by £216. Under Option D, the current total of £1,749.42 could increase by about £31.52, or 1.77%, bringing the total to £1,780.94.
Options and Financial Implications
Two options are being considered for the new council structure: Option A would create two unitary authorities covering Peterborough, Fenland, Huntingdonshire; and East Cambridgeshire, South Cambridgeshire, Cambridge City. Option D would form three authorities: Peterborough and West Huntingdonshire; Fenland, East Huntingdonshire, and East Cambridgeshire; and South Cambridgeshire with Cambridge City.
Each new authority will have to sync up its bills within seven years. Deputy chief finance officer Emma Riding told councillors that harmonisation should ideally happen as soon as possible. “I know 1.77% is an increase, but it’s not a significant increase,” she said. “It is about doing the right thing for sustainability in the future, and that’s the way you’re going to have to look at it when the time comes for making a decision.”
Financial implications vary between the models.
Option A was projected to deliver £12.1m in annual savings with a payback period of six years but comes with one-off implementation costs of £34m and one-off transformation costs of between £11m and £16m. Option D would generate £1.4m in annual savings with a payback period of 50 plus years, though it comes with one-off implementation costs of £41m and one-off transformation costs of between £7m and £12m.
Community Concerns and Future Decisions
Councillors also raised concerns about where the new headquarters would be located, with no decisions yet made on civic centres or service hubs. All 60 Peterborough councillors will vote on the preferred option on 12 November, with cabinet members confirming the final decision on 18 November before it is submitted to the government on 28 November.
The reorganisation aims to balance scale and financial efficiency while addressing local needs. While Option A may not fully address the distinct needs of deprived northern communities, it offers a balanced approach in both size and cost-effectiveness. Option D, though more locally responsive and identity-driven, faces financial vulnerability.
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