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Heart of Hampshire Devolution and the Future of Local www.pwc.co.uk Final Heart of Hampshire Devolution and the future of local government Confidential November 2016 Future of local government in the Heart of Hampshire Final Contents Important notice .......................................................................................................................... 4 Executive summary...................................................................................................................... 5 Future of local government in the Heart of Hampshire ............................................................................................. 5 Key points from the analysis ........................................................................................................................................ 6 Key conclusions and securing a devolution deal ....................................................................................................... 11 Overall conclusion ....................................................................................................................................................... 12 1. Introduction ....................................................................................................................... 13 1.1. Purpose of this report ....................................................................................................................................... 13 1.2. Hampshire and the Isle of Wight ..................................................................................................................... 13 1.3. Heart of Hampshire .......................................................................................................................................... 15 1.4. Local Economies ............................................................................................................................................... 16 1.5. Local government in Hampshire and the Isle of Wight.................................................................................. 18 1.6. The future of local government ........................................................................................................................ 19 1.7. The devolution opportunity ............................................................................................................................ 20 1.8. The case for reform in the Heart of Hampshire .............................................................................................. 21 2. Enhanced two tier and Combined Authority ...................................................................... 27 2.1. Enhanced two / three tier working ................................................................................................................. 27 2.2. A Combined Authority ..................................................................................................................................... 29 3. Unitary authority options .................................................................................................. 31 3.1. The unitary authority options considered ....................................................................................................... 31 3.2. Option 1 – Six unitary authorities with some county wide services ............................................................. 32 3.3. Option 2 – Two unitary authorities ................................................................................................................ 33 3.4. Option 3 – A Single unitary authority ............................................................................................................ 33 3.5. Commentary ..................................................................................................................................................... 34 4. Providing value for money and delivering positive outcomes ........................................... 36 4.1. Approach .......................................................................................................................................................... 36 4.2. Baseline ............................................................................................................................................................ 36 4.3. Disaggregation of Hampshire County Council income and expenditure ..................................................... 38 4.4. Economy and efficiency ................................................................................................................................... 39 4.5. Summary results .............................................................................................................................................. 39 4.6. Payback period ................................................................................................................................................. 42 4.7. Council tax harmonisation .............................................................................................................................. 42 4.8. Summary and conclusions from value for money and cost of transition analysis ....................................... 42 Private and Confidential 2 Future of local government in the Heart of Hampshire Final 5. Strong local leadership and accountability ....................................................................... 44 5.1. Local government reform and the opportunity to strengthen leadership and accountability .................... 44 5.2. Clarifying accountability ................................................................................................................................. 44 5.3. Ensuring simplicity .......................................................................................................................................... 49 5.4. Summary and conclusions .............................................................................................................................. 50 6. Better public services ......................................................................................................... 51 6.1. Introduction ...................................................................................................................................................... 51 6.2. Current baseline position ................................................................................................................................ 52 6.3. Future opportunity .......................................................................................................................................... 52 6.4. Developing better public service ‘tests’........................................................................................................... 55 6.5. Appropriate scale .............................................................................................................................................. 57 6.6. Citizen centricity ............................................................................................................................................... 57 6.7. Connected government .................................................................................................................................... 59 6.8. Empowered to deliver ....................................................................................................................................... 61 6.9. Delivering the promise .................................................................................................................................... 62 6.10. Continuously Innovative ................................................................................................................................. 65 6.11. Summary and conclusions .............................................................................................................................. 66 7. Summary of findings .......................................................................................................... 67 7.1. Overall conclusion ........................................................................................................................................... 68 Appendix A Technical financial annex .................................................................................... 69 A.1. Six unitary option ............................................................................................................................................ 69 A.2. Two unitary option ........................................................................................................................................... 71 A.3. One unitary option ........................................................................................................................................... 73 A.4. Council tax harmonisation ............................................................................................................................... 75 A.5. Disaggregation of Revenue Support Grant (RSG) .......................................................................................... 81 Appendix B The Brief .............................................................................................................. 82 B.1. Unitary options analysis and devolution study May 2016 ............................................................................ 82 Private and Confidential 3 Future of local government in the Heart of Hampshire Final Important notice This document
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