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Unitary Councils: Costs

Volume 494: debated on Tuesday 16 June 2009

To ask the Secretary of State for Communities and Local Government pursuant to the answer to my hon. Friend the Member for Meriden (Mrs. Spelman) of 12 May 2009, Official Report, column 730W, on unitary councils, how latest estimates for the restructuring costs for the new unitary councils break down between spending areas; and if he will make a statement. (278987)

The transition costs of around £138 million were based on the councils' proposals for unitary structures in their areas, remodelled where appropriate by independent financial consultants to reflect risks in the proposals and the potential impact of those risks on the business cases. These costs were summarised in the Impact Assessments published before the proposals were debated and approved by the House.

The stocktake visits that my officials undertook earlier this year confirmed that transition costs and savings were broadly in line with those in the proposals, and transition costs (at around £135 million) were likely to be slightly below the original estimated figure. We will continue to monitor progress in delivering these costs and savings.