‘Expensive shambles’ of Devon council shake-up has cost local town halls millions

Devon councils have already spent millions of pounds preparing for a local government shake-up which has just been put on ice.

Local authority leaders have given mixed reactions to news announced yesterday that the massive nationwide Local Government Reorganisation (LGR) has been stopped in its tracks.
Paul Arnott (Coly Valley), the Liberal Democrat deputy leader of Devon County Council and leader of East Devon District Council, welcomed the decision but said the project had already run up huge bills.
He said: “At both county and district levels, at least 30 per cent of officer capacity has been redirected to work on LGR, and that is multiple millions of pounds.”
He said credit should go to Prime Minister Andy Burnham for having the good judgment and humility to pause and review the plans but added: “The district councils and the county council have been left with an enormous bill for this.”
Secretary of State Angela Rayner announced in the House of Commons yesterday that she was reviewing the plans following legal advice. It is estimated that councils have spent up to £1million each so far on preparations for LGR.
Devon had been on course to split into four new unitary councils – an expanded Labour-led Exeter and Plymouth, an expanded Conservative-led Torbay and a huge fourth council taking the ‘rump’ of the rest of Devon.
All of the county’s district councils would have been swept away in the shake-up, but the plans have now been put on hold after significant opposition across the country, and it is uncertain what will happen next, apart from a commitment to holding local elections in May 2027 on existing council boundaries.
Exeter City Council leader Phil Bialyk (Lab, Exwick) said he was disappointed but understood the need to review the decisions.
He said: “I’m disappointed that Exeter’s long wait for unitary status will now be delayed, but I understand that there needs to be a review because the new prime minister and new administration need to be satisfied that the decisions made are the right ones and that the right processes were followed.
“It is very important that we get this right, because it is too good an opportunity to miss for Exeter and for the rest of Devon. We have no doubt that our joint submission with Plymouth for change in Devon – which was supported by the government – remains the right one.”
Exeter’s Green opposition councillors, however, have labelled LGR ‘an expensive shambles from the outset’.
Group leader Cllr Diana Moore (St Thomas) said: “This latest chapter of chaos will leave councils and communities in a state of confusion. The lack of due diligence by the government to ensure decisions are legally watertight is shocking.
“Labour has failed to offer true devolution, and now the decision has been paused there is space to address the concerns from across Devon and work to improve the dysfunctional relationship between Exeter City Council and Devon County Council.”
Plymouth’s council leader Tudor Evans (Lab, Ham) said he was still hopeful that the so-called Greater Plymouth council would become a reality.
He said: “Elections will still take place in May, and Labour has a fantastic team of candidates who I’ll be backing every step of the way. I remain optimistic that Greater Plymouth is coming, and our city has a huge opportunity ahead of it.”
The city’s Labour MPs also said they were looking ahead to the 2027 elections.
Sutton and Devonport MP Luke Pollard pledged to work ‘flat out’ to elect Labour councillors, and added: “I want to see Plymouth grow and believe we have a sound case for the Greater Plymouth reorganisation. I’m hungry for change, but it’s right that it’s done properly.”
Moor View MP Fred Thomas added: “We understand the government’s decision to put the plans on hold. We will continue to engage with the ministry as it reviews the programme and will await decisions on any future plans.
“In the meantime, we welcome its continued commitment to devolving more decision making away from Westminster, and will plan to hold local elections next year on our existing boundaries.”
But Cllr Chris Wood (Eggbuckland), the leader of the Conservative group on Plymouth City Council, said LGR had so far been ‘chaotic and confusing’, and added: “Frankly it’s largely a time-consuming mess.”
Torbay Council leader David Thomas (Con, Preston) said he hoped that the review could mean another look at the bay’s preferred option of keeping its existing boundaries rather than expanding.
He said: “There has been an incredible amount of time and effort spent on preparing for LGR over the last few months. Everyone in Torbay – residents and councillors from all parties – supported the Torbay option to remain on our existing boundaries. While this option was not chosen, I hope this review now means that this option will be re-examined before any further decisions are made.
“The work we have undertaken to date on LGR has meant that we formed stronger partnerships with our colleagues across Devon and I hope that collaboration will continue, not least as we seek a Mayoral Strategic Authority for the whole of Devon at the earliest opportunity.”
And, he said, he hoped for some clarity over the coming days, particularly for council staff who face uncertainty over their roles. 
The bay’s opposition leader Cllr Swithin Long (Lib Dem, Barton with Watcombe), however, said the amount of time and money wasted on LGR so far had been ‘outrageous’.
He went on: “I welcome the fact that the elections next May will be based on Torbay’s current boundaries and will focus on the truly awful record of the Conservatives.”
Devon County Council leader Julian Brazil (Lib Dem, Kingsbridge), who had spearheaded a move to launch a judicial review of the original LGR proposals, said the pause was good news for the county.
He went on: “We now seem to have a Prime Minister who listens and this is a mature decision by the government. We can work with a government that listens.
“There’s no doubt LGR has been costly, but it has been the catalyst to deliver reforms to streamline local government, and we’re working well with district councils on that.
“If the government wants a strong economy, you can’t mess up local government which is one of the building blocks to achieve that. We need a mayoral system to deliver a strong economy.”
County opposition leader Michael Fife Cook (Reform, Yelverton Rural) added: “We now have the opportunity to try harder for the future of Devon, and not to waste £80million on rebranding and reinventing the wheel. This has been a good day for us all.”
Devon’s district councils, which face abolition under LGR, have welcomed the decision to put the process on the back burner for now but have raised concerns over the cost.
South Hams Council leader Dan Thomas (Lib Dem, Newton and Yealmpton) said he was pleased the government had listened to the objections.
“We recognise the government’s plans to simplify local government and support ambitions for devolution, but the decision to expand Plymouth, Exeter and Torbay while placing the remainder of the county into a vast Devon council has caused deep disappointment and serious concern.
“South Hams believes there were stronger and more coherent alternatives available.”
Cllr Mandy Ewings (Ind, Tavistock SW), the leader of neighbouring West Devon Borough Council, said the news had come as a huge relief.
welcomed the decision.
She said: “The news coming from central government this afternoon that the plans for local government reorganisation in Devon are to be reviewed is a huge relief.
“The review offers the government the chance to ensure that whatever happens with reorganisation, it takes into account the needs of every single person living in Devon.”
Cllr Chris West (Burrator), the leader of the Liberal Democrat group on West Devon Borough Council, added: “I am glad that we will no longer be part of the ‘Devon rump’ which seemed like an afterthought. I hope the government will use this opportunity to listen.”
Rebecca Smith, the Conservative MP for South West Devon, said she was delighted at the pause in LGR, and said: “There is now an opportunity for the government to listen properly to the communities affected and make sure whatever comes next is right for Devon.
“A huge amount of work has already gone into preparing for reorganisation, but something as significant as this needs to be done correctly. Pausing and taking another look is the right decision.” 
Other Devon district councils have also welcomed the pause.
Teignbridge Council leader Richard Keeling (Lib Dem, Chudleigh, said: “The proposals announced in July would have split Teignbridge between three different councils. We believe council boundaries should reflect real communities and support simple, effective services for residents.
“We look forward to working with the government and councils across Devon as the review progresses.”
Cllr Teresa Tinsley (Bideford North), the leader of the Liberal Democrat group on Torridge District Council, said the schedule for change had been too tight and going ahead as planned would have been a ‘very risky course of action’.
She called for clarity on the next steps amid ‘massive uncertainty’.
Phil Hutty, the Lib Dems’ parliamentary spokesperson for Torridge and Tavistock added: “‘What a mess! Nobody liked the plan, nor did anyone realistically think it would save money. Now we are back to the drawing board, with a sense that the government wishes to push ahead with a mayoral authority but with no idea what sort of arrangement will sit beneath it.
“It feels chaotic and leaves everyone in limbo’.
The deputy leader of North Devon Council Peter Leaver (Lib Dem, Barnstaple with Westacott) said: “LGR is a landmark process that will affect all of Devon’s residents. We ultimately welcome the decision to pause and review the path we are on and make sure this significant change to local government will be for the benefit of everyone.”