Title

INTERVENTION

Counting the cost of local government failure

Reflecting on the bailout figure announced by the Government as it unveiled plans for two new unitaries in Surrey, Heather Jameson says austerity is part of the problem but not the full story.

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What is the cost of failure? The £9.5m cost of local government commissioners is just a drop in the ocean – a headline calculation of money paid to rescue teams sent into authorities after they fall over. It sounds like a lot but the cost of inaction, of allowing councils to meander along or double down on their decline, could be far more.

Maybe it is £500m. That is the bailout figure announced this week by the Government as it revealed plans for two new unitaries in Surrey. The figure barely touches the sides of the £1.5bn debt, where interest payments reached £170m last year alone.

Heather Jameson

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