All options are on the table at CLG to overcome the economic crisis – including cancelling the current round of reorganisation, and reviewing local area agreements.
Communities secretary, Hazel Blears, made clear the department was looking at all possibilities, and ensuring the Government would help councils in their efforts to support the community and boost local economies. Speaking at the SOLACE conference in Belfast last week – just as it emerged how much cash councils had lost in the Icelandic bank fiasco – Ms Blears failed to rule out a climbdown on the latest round of local government reorganisation.
Ms Blears claimed her department had gone back to the drawing board on most issues to see where it could help local government in the tough times ahead, and added: ‘There is nothing ruled out'.
She offered government support but, in exchange, she called on councils to:
However, during some tough questioning, she refused to guarantee the Government would stump up the cash councils had lost in the Iceland banks.
Chief executive of Cheshire CC, Jeremy Taylor, also asked if the Government would reconsider the ‘disruptive and expensive' process of reorganisation.
Ms Blears did not rule out the possibility in her response, and among other considerations she mentioned were:
