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Local Government: Reorganisation

Volume 474: debated on Tuesday 1 April 2008

To ask the Secretary of State for Communities and Local Government what assessment she has made of the effect of local government restructuring on the level of council reserves in councils facing restructuring or abolition prior to their restructuring or abolition. (182083)

The proposals received by the Government included assessments by each of the proposing councils of the likely call on reserves. On the basis of our independent financial advisers’ consideration of the proposals, we judge that creating the nine unitary councils we have decided to implement is likely to require an aggregate one-off call on reserves of less than £80 million which will allow savings of over £100 million annually to be realised.