Council to spend £500k on reorganisation planning

New Forest District Council favours combining with Test Valley, East Hampshire, and Winchester as part of the reorganisation

A council has earmarked an additional £350,000 on planning for local government reorganisation.

As part of the restructuring of local government, New Forest District Council is backing a proposal that would see it form part of a new Mid-Hampshire unitary authority.

The Conservative-run authority said a total of £500,000 was "required to support the council's work" as part of the reorganisation.

Opposition councillors said it was a "pay day" for consultants.

The restructuring of local government will see district and borough councils scrapped and the creation of new unitary authorities.

Three options have been proposed for Hampshire and the Isle of Wight, with the New Forest District Council preferring to combine with Test Valley, East Hampshire, and Winchester.

Jack Davis, Liberal Democrat ward councillor for Pennington, told a meeting of the council that funds should directly benefit residents.

"We are being sucked into having an argument when we could be focusing on our residents.

"Consultancies were having a pay day," he added,

Jeremy Heron, portfolio holder for finance and corporate, defended the financial planning.

"We are not squirreling money away, but we do carry out prudent and manageable reserves.

"The Local Government Reorganisation (LGR) reserve fund is not a huge reserve."

A council spokesperson said: "The council's devolution and LGR reserve is intended for one-off expenditure that is required to support the council's work in this area.

"It includes specific commissions such as consultants and engagement work but also fixed-term resources."

Of the funds already allocated, £32,534 has been spent so far.

This included £6,333 contributed to a joint effort with 12 other councils to develop a case for government.

The funding part pays for work with consultancy firm KPMG.