Here is the text of the covering letter the seven District Leader’s have, this afternoon, sent to Jim McMahon, Minister of State for Local Government and English Devolution with their interim plan for reorganisation.

In it they note that the government believes it has identified a “two-tier premium” in local government that, if eliminated, can solve the existential financial crisis in Adult and Children Social Care.

The local leaders go on to say: “We have been unable to find any evidence to support that claimed projected savings will be delivered, and are concerned that abolition of Districts to plug the financial gap is not a reality.” Indeed they estimate the cost of reorganisation to be £100m.

As Owl has recently pointed out, District Councils only account for 7% of your total council tax bill. Most of the services they deliver are essential, such as refuse collection and council housing. So even if 10% of costs could be saved it would only amount to less than 1% of your total Local Authority bill.

The cost of just adult social care in Devon is projected to be around a quarter of the County budget this year.

The County accounts for 73% of your council tax. In round terms the County budget is approaching £2,000m.

Breakdown of Devon County Budget

The District Leaders Covering letter

Date: 21 March 2025

Jim McMahon OBE MP

Minister of State for Local Government and English Devolution

2 Marsham Street

London

SW1P 4DF

Dear Mr McMahon,

This letter accompanies the Interim Plan being submitted here from the Leaders of 7 of the 8 Devon District Councils. We have worked very hard across a wide geography and a range of political backgrounds to develop this plan.

However, we are deeply concerned with both the process and the timetable of Local Government Reorganisation being imposed on Devon, and we are aware that you and Baroness Taylor have been advised of this by many in local government. Moreover, the specific recent context of the financial settlement, and the withdrawal of the Rural Services Delivery Grant does not instil confidence.

We heard at the Districts’ conference that government has identified a “two-tier premium” and that, in its understandable need to solve the existential financial crisis in Adult and Children Social Care, you expect savings by driving LGR through to cover this. We have been unable to find any evidence to support that claimed projected savings will be delivered, and are concerned that abolition of Districts to plug the financial gap is not a reality. If there is such evidence, we would request sight of relevant real-life examples. We feel sure that you are aware of the extreme risk using theoretical data from consultants with limited local government experience.

In Devon, the opposite of cost-saving is probable in this ‘cliff-edge’ approach to reorganisation. We estimate the true costs to be in the region of £100 million. If government is so confident that savings will be delivered, then we suggest these costs are paid to us up front to be recouped from the supposed savings in future years.

We would emphasise that efficiencies and savings can be delivered and that we are best placed to do that. Ironically, we were actively in the process of integrating services at a more strategic level particularly around waste and leisure centre provision. The inevitable upheaval of LGR has somewhat curtailed this constructive and positive action.

Given the chance, we can deliver a road map with tangible targets moving towards savings under a plan which will be less expensive to deliver and will deliver a much more resilient outcome. We share government aspirations around cost-saving but ask you that we are given the opportunity to achieve these outcomes.

As a group, we would be pleased to have the chance to meet with you for further discussion.

Yours sincerely,

Dear Owl, 

Like the MP for Exmouth and Exeter East, I’m an “incomer” to East Devon, so am not fully aware of what has gone on in the area over the years. 

I enjoy reading your articles in East Devon Watch as they provide background information on the political scene in our area. I found your article with the headline ‘”BUILD, BUILD, BUILD” SKINNER BACK ON THE CAMPAIGN TRAIL’ dated 17th March very informative. 

From my understanding, Mr David George Reed stood as a Conservative councillor candidate for Cheltenham Borough Council – Park Ward in May 2022. So presumably he came to our constituency in 2023, as he was selected to be Conservative Parliamentary Party Candidate for Exmouth and Exeter East in the summer of 2023. 

My husband met Mr David George Reed in Brixington in April 2024 when he handed him a leaflet as he was campaigning for Mrs Aurora Bailey, the Conservative candidate in the by-election. Mr David George Reed told my husband that he’d been selected to be the parliamentary candidate for his political party. 

I have read the MP for Exmouth and Exeter East’s Facebook post dated 13th March, that you refer to in your article. I noticed that he was keen to blame the “Lib Dems-led East Devon District Council” for the “extra housing”. He stated the obvious: “Our current sewage network in #ExmouthandExeterEast cannot cope with this.” There are many reasons why the sewage network can’t cope with the present infrastructure. Mainly because the water companies have put profit and dividends before investment in replacing sewage pipes, updating pumping stations and sewage treatment works. It was the Conservative privatisaton that has been a contributory factor to the problems we have in East Devon and across the country. It was also the former Conservative government, including the former MP for East Devon, where Exmouth was the largest town in his constituency, who voted to relax legislation on water companies. 

East Devon District Council is led by the Democratic Alliance Group which consists of Liberal Democrats, Greens and Independent Councillors. Apparently, the Democratic Alliance Group was formed because although the Liberal Democrats had the most councillors elected in May 2023, there weren’t enough of them to form a majority. I have checked East Devon District Council’s website and whilst the Leader of the East Devon District Council is Liberal Democrats, not all of the Portfolio and Assistant Portfolio holders are members of the Liberal Democrats political party. I would have thought that having campaigned on behalf of candidates to be district councillors in Brixington and Exe Valley wards, our MP would know the political situation at East Devon District Council. 

I read the article with the headline “BUILD BABY BUILD” ANGELA RAYNER WANTS TO STRIP COUNCILLORS OF PLANNING POWERS’ in East Devon Watch, dated 10th March and found this very informative. From my understanding, it appears that the former Conservative government imposed housing targets, just like the present Labour government. Apparently, the government can take over council’s planning departments if the targets aren’t met.

I was under the impression that the MP for Exmouth and Exeter East was keen to have a cross party approach to solve problems in our constituency. I presumed that this was because he recognised that having gained a majority of only 121 votes, he realised the importance of good communication skills with others, who have different political opinions to his own. The outcome of the general election in July 2024, showed that this constituency is more of less a three-way split – Conservative, Labour and Liberal Democrats. 

The day before the Exe Valley by-election, their MP stated in his Facebook post, dated 12th March. “It’s worth noticing that this by-election has come about because the former Lib Dems councillor failed to turn up and do the job he was elected to do. This unavoidable by-election is costing us all money.”

It seemed very coincidental that the MP for Exmouth and Exeter East decided to criticise the Liberal Democrats the day before the by-election and also on the same as the by-election for Exe Valley ward. Maybe after reading their Conservative MPs social media posts, voters in Exe Valley ward made up their mind not to vote Conservative in this by-election. Perhaps they decided to vote for the Reform UK candidate instead!

We don’t know what is going on in councillors’ personal lives. There were probably very good reasons why the former Conservative district councillor for Brixington ward and the former district councillor for Exe Valley ward didn’t attend meetings/stood down. I would have hoped that the MP for Exmouth and Exeter East would have been less judgmental and shown more empathy to the former councillors, who relinquished their position, irrespective of political affiliations. 

The former MP for East Devon used to criticise East Devon District Council and those in other political parties. That could have been a factor why he wasn’t elected to be the MP for Honiton and Sidmouth. 

Interestingly, in May 2024 the result of the by-election in Brixington was Conservative hold and the result of the by-election in Exe Valley ward last week was Liberal Democrats hold. 

Yours sincerely, 

An incomer like the MP for Exmouth and Exeter East

All in the name of devolution, District Councils are to be merged into Unitary Authorities and a new second tier of local government introduced above these with elected mayors.

Jim McMahon OBE MP Minister of State for Local Government and English Devolution has invited leaders of all local authorities in Devon to submit interim plans, jointly or severely by 21 March. Ideally in consultation with neighbours.

Owl understands that the following submissions from Devon authorities will be made today:

Ten different options

County submits five options:

• Two unitary authorities – one covering Plymouth and another covering the rest of Devon.

• A two unitary north Devon/South Devon split, with one council for Plymouth, Teignbridge, South Hams and Torbay, and another for Exeter, East Devon, North Devon, Torridge, West Devon and Mid Devon.
• A two unitary south west and north east split, with one council for Plymouth, South Hams and West Devon and another for Exeter, East Devon, Torbay, Teignbridge, North Devon, Torridge and Mid Devon.
• A three unitary option of Plymouth, greater Exeter (formed of Exeter, East Devon and Mid Devon) and the rest of Devon.
• A three unitary option, with Plymouth remaining on existing boundaries, a new unitary council formed of Exeter, East Devon, Mid Devon, North Devon and Torridge and another made up of Torbay, South Hams, Teignbridge and West Devon.

Plymouth submits a single option:

Will propose retaining its unitary status expanded into the “Plymouth Growth Area”. This option proposes extending the city’s boundaries to include 13 neighbouring parishes, approximately 30,000 additional residents. This modest expansion would create a more cohesive and efficient local government structure for the City, better equipped to meet the needs of our growing population. [Still too small to meet the current Government set population threshold of 500,000)

Plymouth Growth Area

Torbay submits three options

• Remain a unitary authority (like Exeter Torbay’s population falls well below the government’s threshold).
• Join the 1-4-5 proposal from the eight Districts (see below).
• Expand into the NHS area (see map below – though just how fixed these boundaries are must now be open to question)

Local NHS areas

Exeter submits a single option

Proposes to become a unitary authority by including parts of East Devon, Teignbridge and Mid Devon in order to serve a population of between 300,000 and 350,000. [Son of GESP – Owl]

The seven Devon Districts submit a single option (Exeter council currently equates to a district though it has no constituent town or parish councils and has chosen to go it alone).

The seven jointly propose the “1-4-5 option” [probably the only one to answer the exam question to the letter – Owl]

This proposed two new unitary model alongside the retention of Plymouth aligns with the six criteria for unitary government, using existing district areas as building blocks and aiming for populations near 500,000 for each authority. The proposed model anticipates the creation of a;

• Exeter and Northern Devon Authority: East, Mid, North Devon, Torridge, and
  Exeter
• Southern Devon Authority: South Hams, Teignbridge, West Devon, and Torbay.
• alongside
• Plymouth City remains as a retained unitary authority

(The seven are: North Devon, Torridge, Teignbridge, West Devon, Mid Devon, East Devon, South Hams)

Never mind the chaos: Jim’ll Fix It!

 (Here’s where he’s coming from: Jim McMahon is a Mancunian born and bred and former Leader of Oldham Metropolitan Borough Council )