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Devon and Norfolk county councils have today launched a joint legal bid to block government plans for unitary authorities in Exeter and Norwich, kick-starting a bitter High Court battle with CLG. The pair will share legal teams as they attempt to secure a judicial review of the unitary decisions announced last week by local government minister, Rosie Winterton. Momentum for the legal challenge intensified after it emerged Eland House's most senior official, permanent secretary Peter Housden, had warned communities secretary, John Denham, against creating the new, single-tier cities. A senior source at Norfolk CC told The MJ leaked letters between Mr Denham and Mr Housden, which outlined the mandarin's concerns, would be used to support the challenge. ‘The letters written by Mr Housden and Mr Denham will be very helpful indeed,' the source said. In one frank letter, Mr Denham directs his permanent secretary to proceed with the unitary reforms, but reveals the mandarin's concern over ‘the value for money and feasibility of what we're proposing'. It also acknowledges there is a ‘high risk of successful legal challenge' from the counties. The same letter also confirms ministers departed from selection criteria outlined in 2007, when deciding on the proposed unitaries. That departure was this week cited by Norfolk CC as a key trigger for the legal challenge. Norfolk's leaders claim the Norwich unitary proposal ‘had been judged to be both unaffordable and unlikely to deliver good value for money' – two criteria ministers had previously said ‘must' be met. Referring to the legal challenge, Norfolk CC leader, Daniel Cox, said: ‘This is not action we have taken lightly. [But] common sense tells us that the risks have multiplied many times over since the city council put this case forward, given the current state of the economy and dire forecast for public spending.' Sources close to Mr Denham said decisions to approve unitary status were supported by local residents in Exeter and Norwich. The leaked letters also make it clear both Mr Denham and Ms Winterton believe the reforms would boost economic growth in both cities, and fit with plans to introduce a Total Place approach to public spending. The two counties, which would remain as smaller, largely-rural, two-tier areas under Mr Denham's plan, wrote to the CLG last week, warning they would begin legal action unless Eland House withdrew its proposals by 17 February. They both pointed to the CLG's 2007 consultation on the unitary proposals, which concluded the reforms would be expensive. CLG ministers were refusing to back down this week. A spokesman for the department said: ‘Ministers believe there are compelling reasons for a unitary Exeter and Norwich to be created. Should any legal challenge be brought, this question will be for the courts to decide.' The grounds for counties disputing the decisions are almost identical. Exeter City Council this week angrily denied Devon's suggestions residents faced council tax increases of £200, if the reorganisation went ahead. But Devon CC sources warned there were ‘wider costs' involved in stripping Exeter away from the county's tax base. Exeter contributes 16% of Devon's current tax take and the county provides key services across the city. County leaders claimed they might not be able to sustain those services, if the reorganisation went ahead. Referring to his legal challenge, Devon CC leader, John Hart, said: ‘Someone has to stand up to them [ministers] and call a halt to this political manoeuvring.' Shadow local government minister, Bob Neill, said the Government's plan was ‘expensive, divisive and fundamentally undemocratic', and confirmed his party would scrap the proposals.

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WHITEHALL

Unitary plans descend into a Whitehall farce

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