The Devolution and Local Government Re-organisation Cabinet Committee met to discuss the ongoing Local Government Reorganisation (LGR) process, including national updates, progress on service complexity assessments, and the procurement of a strategic partner.

LGR Update

The committee received an update on national Local Government Reorganisation (LGR) developments. Mr Edward Thomas, Strategy Manager, presented the report, highlighting that the government had announced decisions on Devolution Priority Programme (DPP) geographies for Essex, Hampshire, Norfolk, and Suffolk. Further consultations were announced for East and West Sussex. Mr Thomas noted that the average size of new unitary councils in the DPP areas was around 300,000, a deviation from the original 500,000 population threshold. Boundary modifications and a focus on expanding city council boundaries were also observed. The report also detailed LGR transition funding, with Kent and Medway potentially receiving between £900,000 and £4.5 million. Structural Change Orders (SCOs) are expected to be finalised after 29 May, with parliamentary presentation delayed until after the summer recess. Changes to joint committee membership were also noted, with 50% of membership to come from existing unitary councils and 50% from counties and districts where unitary councils are involved.

Councillor Maxine Fothergill raised concerns about Kent County Council (KCC) progressing preparatory work before a final government determination, to which officers responded that it would be irresponsible not to prepare for anticipated government changes. Councillor Fothergill also questioned safeguards for public expenditure given the lack of consensus on options within Kent and Medway. Councillor Mark Ellis inquired about the potential for political bias in government decisions, with officers stating they could provide analysis of political parties involved but not draw conclusions on bias. Councillor Antony Hook argued for a more realistic approach, suggesting Option 1A was unlikely to succeed and that KCC should express a preference between other options. Councillor Jeremy Eustace questioned the impact of potential delays in government decisions, while Councillor Mark Hood expressed frustration over changing government criteria and the potential impact on community governance reviews.

Update on Service Complexity Assessments

Ms Jenny Dixon-Sherreard, Strategy Manager, presented an update on the Service Complexity Assessment (SCA) process, designed to help KCC understand the complexities and risks associated with transitioning services to new unitary councils. The process involves gathering information on service demand, delivery models, budgets, workforce, assets, and legislative requirements. Initial findings from pilot assessments highlighted service-specific operational complexities, the importance of understanding geographic demand variations, and significant interdependencies between KCC services. The SCA process is on track, with initial assessments and recommendations expected by July 2026.

Councillor Mark Hook raised the issue of the Oracle software platform and its potential implications for LGR, suggesting that comparisons with Medway's systems should be made. Mr Ben Watts, Deputy Chief Executive, assured that technology implications were being considered. Councillor Alister Brady asked about assurances for break clauses in future re-procured contracts and how district council functions would be integrated. Ms Dixon-Sherreard explained that the SCA process aims to ensure KCC is fully informed for joint conversations once a decision is made and that collaboration with Medway and district councils is ongoing. Councillor Fothergill questioned the expenditure on external partners, PricewaterhouseCoopers (PwC), for the SCA process, and asked for details on the procurement route and authorisation. Officers confirmed that normal governance processes would have been followed and offered to provide further details. Councillor Fothergill also raised concerns about potential increased inequalities between future unitary authorities following disaggregation and asked about assessments of workforce instability. Mr Watts confirmed that a paper on workforce impacts was being prepared for the Personnel Committee.

Procurement of a Strategic Partner for Kent and Medway LGR Programme

Mr Tim Woolmer, LGR Programme Director for Kent and Medway, presented the proposal to procure a strategic partner to support Phases 3 and 4 of the collaborative Kent LGR programme. The partner will provide programme management support, expert advice, and capacity to ensure a safe and legal transition of services by Vesting Day in April 2028. All 14 local authorities in Kent and Medway have asked KCC to lead the procurement. The estimated cost is expected to exceed £1 million, and government funding of between £900,000 and £4.5 million is anticipated.

Councillor Mark Hood questioned the need for an LGR reserve, given the confirmed need for additional resources. Mr Dave Shipton, Head of Financial Strategy, explained that most costs would fall in 2027/28 and would be considered in budget proposals, and that government funding was expected to be sufficient. Councillor Jeremy Eustace raised concerns about the financial capacity of other local authorities to cover their share of costs and the safeguards for KCC. Mr Woolmer assured that a robust memorandum of understanding was in place. Councillor Fothergill questioned how members could scrutinise procurement activities where the total contract value was not yet fully known and whether the proposed decisions created implementation momentum before a Structural Change Order existed. Officers explained that the procurement process was designed to be flexible and iterative, and that the decision was about authorising procurement activities, not committing to specific spending. The committee was asked to consider and endorse the proposed decision.