Oxfordshire and West Berkshire councils have collectively expended in excess of £3m in public funds on reorganisation efforts, only for the initiative to be halted by central government.
In 2024, the Labour administration under Prime Minister Starmer instructed all major councils within the county to submit their own recommendations regarding local authority boundaries.
The Labour-led administration ultimately endorsed a proposal put forward by Labour-controlled Oxford City Council for the establishment of three separate authorities.
The proposed structure would consist of a Greater Oxford area, essentially an enlarged urban centre incorporating neighbouring villages, a Northern Oxfordshire authority encompassing West and Cherwell districts, and a Ridgeway authority covering the majority of South and Vale along with West Berkshire.
However, the scheme was suspended by the government last week following unspecified legal counsel, with the Secretary of State for Local Government Angela Rayner declining to elaborate on the specifics.
Representatives from all of Oxfordshire’s local authorities and West Berkshire council were questioned regarding expenditure incurred to date.
Exclusive of staff working hours, the seven councils have utilised £3.285m derived from council tax revenues, with all participating authorities anticipating recovery of these costs through efficiencies generated by the proposed new structure.
A spokesperson representing the collective position of Oxfordshire and West Berkshire councils stated that all authorities had committed resources to the local government reorganisation process in good faith, adhering to guidance issued by the government.
The spokesperson emphasised that such a transformation would represent the most significant alteration to local governance in the region for half a century.
Any substantial restructuring necessitates initial expenditure, and it is anticipated that this investment would yield returns over the medium to long-term through savings achieved by transitioning to unitary authorities.
Detailed cost projections were incorporated within the submissions forwarded to government ministers.
Across the seven participating councils, £3.283 million has been allocated thus far towards developing proposals and facilitating preparatory work for the transition.
Government grant funding totalling £285,000 has been received to support these activities.
While the government undertakes its review, all councils have suspended additional expenditure commitments.
The collective expectation is that the work completed and financial investment made to date will establish a solid foundation for preparing for whatever configuration of local government emerges in the region.
A prompt resolution to the review is sought, so that residents, businesses and employees across Oxfordshire and West Berkshire can obtain clarity regarding the future arrangements.
Requests have been submitted to all councils for comprehensive itemised breakdowns of individual spending.
Dan Levy, the Liberal Democrat finance portfolio holder for Oxfordshire County Council, recently declared that the authority now finds itself in a challenging financial situation attributable to government actions.
City Green group leader Lois Muddiman urged the government to provide compensation for costs incurred by councils as a consequence of what she described as their disorganised reversal of policy.
Susan Brown, the Labour leader of Oxford City Council whose three-authority blueprint had previously received approval, expressed disappointment at the decision.
The Department for Levelling Up, Housing and Communities has been contacted for a response.