The Overview and Scrutiny Performance Board met to discuss the One Worcestershire local government reorganisation proposal, its financial implications, and the scrutiny work programme for the coming year. Councillors expressed concerns about the lack of a complete business case, the potential for council tax increases, and the need for public consultation. The Board agreed to explore options for an additional meeting to scrutinise the One Worcestershire proposal before it goes to the full council.

Local Government Reorganisation

The main item under discussion was the One Worcestershire proposal for establishing a single unitary council for Worcestershire. The aim of the meeting was to brief the Cabinet and Council on any recommendations or conclusions the board reached, and to examine the report coming to Cabinet in more detail.

One Worcestershire Proposal

Hannah Perrott, Assistant Director for Communities and LGR Programme Lead, introduced the business case, explaining that it was divided into work streams, each with a lead working collaboratively with stakeholders. She said that the business case would articulate the evidence base for how One Worcestershire would meet the criteria set by central government.

Phil Rook, Chief Financial Officer, then outlined the financial challenges facing the council, including a Dedicated Schools Grant (DSG) deficit¹ projected to be over £300 million by 2028, and the need to repay Exceptional Financial Support (EFS). He argued that a unitary authority would be more financially sustainable, reducing the cost of leadership and governance, focusing on prevention, and acting as an intelligent commissioner.

Councillor David Taylor, Cabinet Member with Responsibility for One Worcestershire, expressed his support for the One Worcestershire proposal, stating that it would allow for better management of debt and the retention of vital services like children's and adult social care.

Concerns and Questions

Councillors raised a number of concerns and questions:

• Financial Resilience: Councillor Natalie McVey, Chair of the Children and Families Overview and Scrutiny Panel, questioned whether the council would have the financial resilience to absorb additional costs, particularly in relation to housing and homelessness. She also asked about access to localised services, given a diminishing public estate.
• Council Tax Harmonisation: McVey also raised concerns about potential council tax increases. Rook clarified that council tax harmonisation would be necessary under both one and two council models, and that options for harmonisation included harmonising up, down, or to the middle. He noted that a leaked slide showing one option for council tax harmonisation was misleading because it did not provide the overall context.
• Local Representation: Councillor Josh Robinson, Chair of the Environment Overview and Scrutiny Panel, raised the issue of local representation in areas without town or parish councils, such as parts of Worcester, Redditch, and Wyre Forest. He asked why Bromsgrove was not mentioned in the presentation in this context.
• Public Consultation: Several councillors voiced disappointment that there had been no public consultation on the One Worcestershire model. Paul Robinson, Chief Executive, explained that the government would be conducting the public consultation after the bids had been submitted.
• Staff Survey: McVey asked about a staff survey. Taylor clarified that there had been consultations with staff, but not a formal survey. He said that the feedback had been generally positive, with staff seeing the potential benefits of a unitary authority.
• Asset Sales: Councillor Jenny Shaw raised concerns about the proposed sale of assets to help with budget recovery, questioning whether the budget was relying on sales within the first year and whether assets would be sold below market value.
• Devolution: Councillor Richard Udall, Labour Group Leader, asked about the lack of a strategic authority and the potential impact on devolution. Robinson responded that the council needed to get on with reorganisation and then be clear with the government about its desire for a devolution deal.
• 500,000 Population Target: Councillor Sam Evans questioned whether the government's target population of 500,000 for unitary authorities was a hard requirement. Robinson stated that the council had not received any communication indicating that the target had changed.

Extraordinary Meeting

Several councillors requested an extraordinary meeting of the Overview and Scrutiny Performance Board to scrutinise the One Worcestershire business case before it is submitted to the full council. Councillor Tom Wells, Chair of the Overview and Scrutiny Performance Board, agreed to explore options for reconvening the meeting, with a preference for a date before the council meeting on 6 November.

Scrutiny Work Programme

The Board also discussed the scrutiny work programme for 2025/26. Members provided updates from their respective panels and identified potential topics for future scrutiny, including:

• Public health promotion activity
• Consultations and responses, and hearing the views of hard-to-reach groups
• Education, Health and Care Plans (EHCPs)
• Capital programme
• Youth work

It was agreed that the