URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=1868

Decision Maker: Overview and Scrutiny Committee,

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The report of the Chief Executive (CE) was introduced by Councillor Oliver, the Leader of the Council, which outlined the Business Case for Local Government Reorganisation (LGR) in East Sussex (the proposal for the creation of a new unitary council) for submission to the Minister of State for Local Government and English Devolution by the deadline of 26 September 2025. The CE led Members through the salient points of the Business Case, which the Committee was asked to consider, together with its appendices and provide any comments for consideration by full Council, to enable Cabinet to approve the proposal on 24 September 2025. Any questions that could not be answered during the meeting would be answered by the CE afterwards and before full Council on 24 September 2025.   The Government White Paper on Devolution, published in December 2024, set out proposals for LGR in England.  Following the publication of the White Paper, Sussex and Brighton, alongside five other areas, were approved to be part of the Devolution Priority Programme (DPP).  This programme enabled the areas in question to fast-track both their plans for the creation of new Mayoral combined authorities and also for LGR. The areas included in the DPP were required to work collaboratively to submit to Government, by 26 September 2025, proposals for the creation of unitary councils in their area.   The work to prepare the East Sussex councils’ proposal had been led by the East Sussex Leaders group, supported by the East Sussex Chief Executives group and an LGR project team. Various cross-council subgroups, including Finance, Communications, Democratic and Asset services, had assisted in ensuring the work was delivered within the very tight timescales required by central Government.   The Business Case set out a strong and well-evidenced rationale for creating a single unitary authority across East Sussex.  It followed a comprehensive appraisal of three options, each assessed against the Government's criteria for local government reform. The options considered were:   •    Option 1: One East Sussex – A single unitary authority covering the current East Sussex boundaries. •    Option 2: Two Unitary Authorities – Dividing East Sussex into two new councils (geography undefined). •    Option 3: Brighton & Hove Expansion – Brighton & Hove City Council expands into parts of Lewes District (with four proposed variants), while the remainder of East Sussex forms a separate unitary authority.   The options appraisal clearly demonstrated that the 'One East Sussex' model best aligned with the Government's criteria for local government reform.  It also reflected existing service delivery footprints (such as social care, education, and public health), ensuring minimal disruption to statutory services and established partnerships.  Furthermore, it built on the strong foundation of collaboration already in place across the six councils, enabling a smoother transition and greater continuity in service provision. The 'One East Sussex' proposal delivered operational efficiencies by consolidating services under a single authority, while also avoiding the significant costs and complexities associated with disaggregating County Council functions.   Extensive engagement had taken place to ensure local residents and other stakeholders’ views had been fully considered in the development of the proposals.  An online survey ran from 12 May 2025 to 23 June 2025.  Residents also had the option to complete the survey in paper form during that time. A significant number of key stakeholder groups, including all parish and town councils and other local public sector organisations, were also approached directly to respond to the survey. To add qualitative feedback, a focus group was held in each of the five district/borough areas, which provided further, in-depth feedback from residents to inform the report.  The Business Case included an analysis of the survey findings.   The majority of respondents in all the above surveys and engagement activities showed a preference for a single unitary authority on the existing East Sussex footprint over all other proposals, although there were a significant number of views preferring no change to current arrangements.  There was also concern about the potential for loss of local representation. In addition, Lewes District Council and East Sussex County Council jointly undertook a further consultation exercise, which focused on residents of the areas which Brighton and Hove City Council had indicated it would like to consider for inclusion in their proposals for an extended City Council area; there was strong local opposition to the proposal.   Subject to the agreement of each council, the identical Business Case would be submitted to central Government by all East Sussex authorities.  Following submission, the Government would undertake its own statutory consultation process, which was expected to run from November 2025 to January 2026, with a decision by Government in March 2026.   Following the statutory consultation, the Secretary of State might, subject to Parliamentary approval, choose to implement the proposal, either in its original form or with modifications, or decide not to proceed with any proposal for the area.  The Secretary of State might also seek advice from the Local Government Boundary Commission for England as part of the decision-making process. Subject to approval, secondary legislation would enable the establishment of a shadow authority by May 2027 to oversee the transitional arrangements, and the new unitary council would then assume full responsibilities from April 2028.   Members were given the opportunity to ask questions, and the following requested changes to the wording of the Business Case were noted:   •    Members questioned if Wealden District Council was to be removed from the front page of the Business Case as it was understood that they no longer supported the proposal; •    there was very little mention of the High Weald National Landscape (HWNL), the medieval landscape being one of the district’s greatest treasures. There was also no mention of the district’s Sites of Special Scientific Interest (SSSI), e.g. Pevensey Levels or Ramsar sites. Members requested that both the SSSI and HWNL be mentioned within the Business Case; •    Members suggested section 6.1.4 ‘Benefits of Reform’ be reworded to ‘Benefits of Reorganisation’ and the word ‘reform’ replaced where used in other parts of the Business Case; and •    it was requested that ‘natural beauty’ on page 44 at point 5.7 be replaced with ‘nature’.   During the discussion, the following comments on the Business Case were noted:   •    Members were pleased to see the integration of Housing and Social Services, which would be of huge benefit; •    Neighbourhood Area Committees (NAC), although a good idea, appeared to have little clout elsewhere and therefore serious attention should be given to their locality and size and to integrate them into the scrutiny system; •    concerns were raised about the lack of respect given to parish and town councils (P&TC) and although NACs were mentioned, no guidance had been given around how they would work. Across Rother, the P&TCs had varying and different responsibilities and had positive dialogues with the Council – would this continue with One East Sussex?; •    Members questioned whether officers would still work within the boundaries of their current district or across the whole unitary authority; •    One East Sussex would be much more inclusive, with resultant savings in not having to implement boundary changes, which was very important given the restrictions of Government funding and the increased need in housing, adult social care, Special Educational Needs and Disabilities and child social care; •    questions were raised concerning where the Mayoral Strategic Authority (MSA) would be based. The CE confirmed that the MSA would not include Surrey; •    Members appealed to their Labour colleagues to fight and promote the desperate need for fairer funding to the county, to enable the Council to accept LGR in its fullest sense for the sake of its residents and their future; •    a five-district model would contradict the Government’s requirements in terms of population and boundaries, approximately 80 changes would be required, would cost an extra £50-60m and was therefore not viable; •    working with the community and voluntary sectors would be another way to address any democratic deficit, with small NACs; •    consideration should be given to Peoples’ Assemblies, used in many areas to educate the population; •    in order to unify the new unitary authority, careful consideration should be given to where the unitary authority would be based, rather than in Lewes at the edge of the county; •    reducing the size of the area proposed by One East Sussex to four or five districts would bring residents closer to the services and should be an option for residents to consider; •    the Business Case should trump any political interests, due to financial concerns; •    Members raised concerns that NACs were another version of a town council, but were appointed to rather than elected; •    the need to ensure that there would not be three levels of decision makers with the creation of a Mayor, unitary and parishes or NACs; •    it would be a positive move to create a unitary authority to deliver primary services, but not structured as a long, thin geographical area as service provision would become more expensive and less efficient; •    it was important to consider the financing of the P&TCs, to boost their responsibilities and consider bringing smaller parishes together; •    Members suggested that consideration be given to Rother District Council being put forward as a pilot area around the neighbourhood governance work and to help with its shaping; and •    Members requested that climate, nature and carbon reduction be emphasised.   The CE confirmed the following information for Members:   •    the One East Sussex option was based on the current East Sussex county boundary, with Brighton and Hove City Council remaining as a unitary authority. The second option considered the same, but with two hypothetical councils within the county boundary; •    the three options that were mentioned in paragraph eight of the covering report had all been assessed against the set of six criteria in paragraph seven. There were no changes to Brighton and Hove City Council for the first and second option; •    it was not compulsory for the borough councils to be parished in order to go through the process; •    page 30 of the Business Case set out high level principles to guide the unitary authority in developing the models of neighbourhood governance, but the Government was still to issue guidance on what was to be expected; •    research had been carried out around NACs, looking at what had worked in recent unitary authorities elsewhere; this had been the most consistent concern of residents and stakeholders that had come out in the consultation. Work on this would continue throughout the process; •    the proposal from Brighton and Hove City Council on the creation of five councils across Sussex had not been considered in the Business Case, due to its late submission and that it had not been subject to any engagement or consultation; and •    Brighton and Hove City Council did consult on the expansion into Lewes, but this was primarily rejected by affected residents.   Members requested that the CE, in conjunction with the Leader of the Council, incorporate key comments made from this Committee and from full Council on 24 September 2025 into a covering letter to be submitted with the Business Case to the Government. Any requested changes to the wording of the Business Case would be subject to the agreement of the other councils in support of the Business Case.             Members of the Committee were in support of the Business Case and agreed to request that full Council recommend Cabinet approve the proposal on 24 September 2025, for submission to central Government by 26 September 2025.   Members thanked officers for a superb piece of work.   RESOLVED: That:   1)  full Council recommend Cabinet approve the proposal on 24 September 2025 for submission to central Government by 26 September 2025; and   2)  the Chief Executive, in consultation with the Leader of the Council, incorporate key comments made by the Overview and Scrutiny Committee and full Council on 24 September 2025 into a covering letter, to be submitted with the proposal to central Government; and   3)  any requested changes to the wording of the Business Case, would be subject to the agreement of the other councils in support of the Business Case.   (Councillor Maynard declared an Other Registerable Interest as an Executive Member of East Sussex County Council and in accordance with the Members’ Code of Conduct remained in the meeting for the consideration thereof.)

Date of Decision: September 22, 2025