Expanding city could save councils £46m, says mayor

Sir Peter Soulsby said expanding the city's political boundaries was the "sensible" thing to do

Expanding Leicester's political boundaries could save councils £46m a year in the future, the city's mayor has said.

Sir Peter Soulsby has revealed the potential scale of public sector efficiencies as Labour-run Leicester City Council finalises its proposals for a major shake-up of local government.

The Labour mayor wants a new local political map, which would see the authority's boundaries move outwards to take in towns and villages currently served by neighbouring district councils.

Expansion of the city boundary is being opposed by Reform UK, Conservative and Liberal Democrat politicians at Leicestershire County Council and the county's existing seven districts and boroughs.

All the existing councils are being asked to submit final proposals on their preferred options for the future by the end of the month to ministers, who want to simplify council structures and replace the current two-tier set-up with new, larger unitary councils.

Soulsby, whose own mayoral position is set to be abolished, said the city proposal would establish two new unitary councils for Leicester, Leicestershire and Rutland, with the city border expanding into neighbouring built-up areas and suburbs such as Blaby, Oadby and Birstall.

He said that would cut management costs, duplication of services, as well as provide the city with land for housing for its growing population.

The proposal would leave a second unitary authority for the county's rural areas and market towns that surround the city.

The pink-shaded area of the map shows the extent of the proposed new city boundary

The mayor said: "Whichever side of the city and county boundary you live, the way services currently operate is wasteful and confusing.

"Our proposal would achieve balanced population levels for the city and surrounding county areas.

"Modelling shows that this makes the best financial sense and is in the long-term interests of everyone.

"Reorganising the 10 existing local councils into two unitary authorities of comparable size would deliver more efficient and cost-effective council services across the whole area with more streamlined decision-making.

"An expanded city will also be key to boosting housing and local economic growth and unlocking devolution."

Soulsby said the city's current boundary was a "historic accident" which constrained its growth.

The county council proposes a single authority around Leicester's existing border

Under the city council's proposal, the population would grow from its current 372,000 to an estimated 622,000 by 2028, when the government wants the new councils to be established.

That would leave 584,000 people in the surrounding area.

The county council intends to tell ministers a single council, including Rutland, should surround the city's current footprint to serve some 800,000 residents.

It said that would save about £40m a year through reduced numbers of senior officers and elected members, and reduced back-office costs.

Reform UK county council leader Dan Harrison said the county's proposal would allow the money saved to be put into front-line services.

He said: "We have considered feedback from residents and [our] proposal avoids splitting communities or changing city boundaries which could affect our local heritage.

"The new unitary authority for Leicestershire and Rutland will ensure local people are involved in the decisions that affect them.

"Combining services will reduce duplication, improve co-ordination and provide consistent, high-quality services."

Harrison said the proposal would also avoid the prospect of splitting up existing social care departments.

The district and borough council say two new authorities should surround the city

Whatever the outcome of the process, the county's districts are set to be abolished.

They, together with Rutland County Council, said they would be proposing three unitary councils across Leicester, Leicestershire and Rutland when they submit their plans to ministers at the end of November.

Their preferred option is called, North, City, South.

A North Leicestershire and Rutland council would serve the area currently covered by Charnwood borough, North West Leicestershire district, Melton borough and Rutland County Council.

A separate South Leicestershire council would cover the areas of Blaby district, Harborough district, Hinckley and Bosworth borough and Oadby and Wigston borough councils.

The district leaders said their plan would create three equally balanced councils, each serving about 400,000 people, delivering economic growth, and saving £44m in efficiencies.

Melton Borough Council leader Pip Allnatt, who speaks for the districts and Rutland, said: "The North, City, South plan has been developed by the eight partner councils, representing a wide range of political views and demonstrating a strong commitment to collaboration for the good of our communities.

"North, City, South makes a strong case to deliver devolution alongside local government reorganisation.

"This will unlock investment, create jobs and boost prosperity. The approach reflects feedback from businesses and stakeholders who support these ambitions.

"It also outlines a once-in-a-generation chance to shift from treating symptoms to tackling root causes, getting support to people earlier.

"Local government isn't broken, but the government says change is needed and the North, City, South plan offers a clear direction of travel for Leicester, Leicestershire and Rutland for the next 50 years."