Over £60m a year 'could be saved by merging councils'

Leader of Basingstoke Paul Harvey said savings would be made from day one, but importantly services could be transformed

The merging of councils in Hampshire could save more than £60m a year, according to a business plan made by 12 of the authorities.

The report has published by twelve of the fifteen councils in Hampshire and the Isle of Wight, in response to government proposals to create a single tier of local government.

Called "Close enough to be local, big enough to stay strong" the report says four new mainland unitary councils should be created with the Isle of Wight staying as it is.

The exact make-up of the councils is yet to be determined, but it is proposed to merge existing district, borough and unitary authorities and do away with Hampshire County Council.

Paul Harvey, leader of Basingstoke borough council said the plan would create some of the largest councils in the country but they would "remain closely connected to their local areas".

The report suggests at least £63.9m would be saved annually by service integration, shared infrastructure and workforce reduction, although in the first three years that money would pay for the changes.

Savings could be as much as £92m but Paul Harvey said it was also about improving services, particularly around children's and adult social care.

"We need a new way of thinking, bringing health and social care services together for example, " he said.

Twelve council leaders, including Southampton, Portsmouth, Fareham, Test Valley and Rushmoor have agreed to the plan which outlines three options.

They vary slightly depending on which council the New Forest is paired with.

In option two it is teamed with Southampton and Eastleigh, but the leader of New Forest council Jill Cleary has said that is "not what people in the Forest want".

Her preference is option one which sees them matched with Test Valley, Winchester and East Hampshire.

Option three sees certain parishes, including Totton & Eling, Fawley, Clanfield and Horndean joined with their nearest large city.

The third option has been tweaked slightly since it was first revealed in June, with fewer parishes being merged with Southampton or Portsmouth.

Hundreds of councillors will get a chance to vote this month on which grouping they prefer.

East Hampshire District, Hampshire County and Gosport Borough councils have not been involved in this plan.

East Hampshire and Hampshire county favour fewer mainland councils arguing four unitaries will not be financially sustainable.

Gosport's council leader Councillor Peter Chegwyn has said "scrapping the council is not good for people here and we don't want it."

Local government reorganisation is part of the devolution bid for Hampshire and the Solent.

The area was accepted for the government's priority programme earlier this year.

Alongside the new unitary councils there would also be a new combined authority with a mayor.