Local Government Reorganisation

HC Deb 22 January 1997 vol 288 cc607-8W

Mr. Davidson

To ask the Secretary of State for Scotland what savings he estimates have been made as a result of local government reorganisation; and how these figures were calculated(a) in total and (b) for the financial year 1997–98. [11435]

Mr. Kynoch

The Government's view of the costs and savings associated with local government reorganisation are based on the report, "The Structure of Local Government in Scotland: Financial and Qualitative Appraisal of Options for Change" by Touche Ross, published in October 1994. Provision has been made, and is planned to be made, in the relevant local government finance settlements as shown in the table. It is too soon to estimate actual savings which will depend on decisions made by individual councils regarding their management and staffing structures.

£million
	1995–96	1996–97	1997–98	1998–99 (and beyond)
Transitional costs	41	70	20	—
Long-term costs (29 rather than nine councils delivering "regional" services)	—	62	62	62
Long-term saving (from stream-lined central administration)	—	92	102	102
Net costs/(savings)	41	40	(20)	40)