Decision details

Proposed decision – Cabinet to approve KCC’s Strategic Business Case for Local Government Reorganisation in Kent and Medway for submission to Government.

Reason for the decision

Kent County Council (KCC) is required to submit a Strategic Business Case setting out its preferred option for Local Government Reorganisation in Kent and Medway following a statutory invite from Government on 5 February 2025.

Background

Councils in Kent and Medway received a statutory invitation to submit proposals for Local Government Reorganisation (LGR) in a letter from the Minister of State on 5 February 2025. A schedule attached to the letter set out criteria against which Government will judge proposals and some requirements for the process. The LGR process and timeline is set by the Ministry of Housing, Communities and Local Government (MHCLG) and is not subject to change by councils. Each council can submit one business case setting out their preferred option for LGR for the Kent and Medway area by the deadline of 28 November. Following the submission of business cases and a statutory consultation process which will be led by MHCLG, Ministers will decide, subject to Parliamentary approval, which, if any, proposal is to be implemented, with or without modification.

KCC has been undertaking preparation work since the February invitation, both through a joint options appraisal (completed by KMPG on behalf of Kent Council Leaders) and through an internal options appraisal conducted by KCC. Having considered the findings of both the internal and joint options appraisals, it is KCC’s position that it will submit an independent Strategic Business Case to Government for the single-unitary option covering Kent and Medway, supported by three Area Assemblies.

One of the primary reasons KCC is proposing to support a single unitary for Kent and Medway is because it is considered to be the most financially viable option, in both the short and the long term. Modelling predicts that financial benefits will be delivered in less than a year which will continue to accrue, providing scope for reinvestment into services for residents. Given the significant and unique challenges that Kent faces due to the county’s disparities and its nationally important position as the gateway to Europe, it has also been determined that a single unitary is the only viable option for LGR in Kent and Medway as it maintains countywide scale and avoids the service delivery risks that could come with the disaggregation of key services. The model aligns well with Government’s criteria for LGR and will allow the benefits of developing a single tier of local government in Kent and Medway to be realised.

As part of KCC’s proposed model, three Area Assemblies in the North, East and West of Kent would sit underneath the single unitary, providing responsiveness to local needs on some place-based services. The Area Assemblies have been purposefully configured so that they bring together districts in geographic groupings which reflect local identity and residents’ travel to live patterns (i.e. they mirror travel to work, education and healthcare flows). The geographic boundaries of the Area Assemblies also mirror existing service delivery footprints, with most local authority services (as well as services delivered by key partners such as the NHS and the Police) currently delivered across East, North and West Kent, allowing Area Assemblies to work with partners to design and deliver local transformation projects alongside wider public service reform.

Options (other options considered but discarded)

An internal options appraisal was conducted earlier this year to assess the relative opportunities and challenges of each option against the Government’s criteria, helping Members to make an informed decision on Local Government Reorganisation in Kent and Medway. The findings of the options appraisal were presented to the Cabinet Committee for Devolution and Local Government Reorganisation on 28 July 2025 and can be accessed here.

Having considered the findings of the initial options appraisal and taken part in discussions about all of the options identified by Kent Council Leaders, it is KCC’s position that it will submit a Strategic Business Case to government for a single Kent unitary council covering the Kent and Medway area, with three Area Assemblies for North, East and West Kent. The administration considers that the financial dis-benefits of the other options presented do not represent good value for money for Kent’s taxpayers.

How the proposed decision supports KCC’s Strategic Statement:

KCC is proposing to support a single unitary model for Kent and Medway as it is the only viable financial and strategic option in the circumstances Kent and Medway is facing. A large unitary authority of this size and scale would have the necessary financial capacity to deliver key statutory services, including sustainable adult and children’s social care. Having just a single tier of local government across Kent and Medway would also provide opportunities to generate efficiencies, ensuring value for money is secured in all spending decisions. The proposed decision to support a single unitary model is therefore consistent with the objectives set out in the Strategic Statement and the Council’s Best Value obligations.

Financial Implications

Each proposed option includes one-off implementation/transition costs, as well as ongoing costs and ongoing net benefits/dis-benefits. These high-level costs were set out in the financial assessment section of the options appraisal paperwork that was presented to the Devolution and Local Government Reorganisation Cabinet Committee in July. Please note that these figures are indicative and will be updated as the Strategic Business Case is developed, with a standard methodology used across all Kent and Medway councils to ensure consistency and accuracy. Updated financial information will be provided accordingly as part of the Key Decision paperwork.

It is important to note that the approval of this Strategic Business Case does not require KCC to commit any financial resource. The decision is only asking for Cabinet to approve the Strategic Business Case ahead of submission to Government; no financial commitments are attached. Government will then decide which business case will be progressed for implementation following a statutory consultation. Further key decisions will then be taken as necessary during the implementation phase for any specific policy proposals and service restructures, as well as for any significant savings or expenditure programmes.

Legal Implications

Kent County Council, together with Medway Council and the 12 District and Borough Councils, were invited by the Minister of State in February to submit a request for local government reorganisation by November 28, 2025. The legislative basis for this was set out by the Government in this invitation, which can be accessed here: Letter from MHCLG.

It is important to note that Local Government Reorganisation is a government-led process initiated by the Secretary of State. Councils are therefore unable to stop or delay LGR. The Secretary of State can decide to take forward proposals that are submitted by areas with or without modificationand will ultimately make the final decision on which business case is implemented following the statutory consultation. KCC is therefore not the decision-maker.

Equalities implications

A draft Equality Impact Assessment (EqIA) has been undertaken on the proposed decision to submit a Strategic Business Case to government to establish a single unitary authority for Kent and Medway. The EqIA identifies potential impacts for a number of protected characteristics under the Equality Act 2010. Key issues include potential risks to service continuity, communication challenges, and visibility of local needs within a larger strategic framework. The assessment also acknowledges potential workforce impacts.

The draft EqIA will be updated as necessary following public engagement to reflect the feedback received. The final EqIA will then be published as part of the Key Decision paperwork and will be included as a separate appendix within the Strategic Business Case.

Further EqIAs will be undertaken as necessary for specific policy proposals, service restructures, or operational changes that emerge from the reorganisation process, ensuring that equality considerations are embedded at every stage of implementation.

Data Protection implications

Internal advice has been sought from the Council’s Data Protection team, who have confirmed that a Data Protection Impact Assessment does not need to be conducted at this stage as no personal data has been processed as part of developing the Strategic Business Case. Data Protection Impact Assessments will however be undertaken as necessary during the next stages of the LGR process. This will be particularly important during the transition phase, where it is highly likely that large volumes of client data will need to be migrated from KCC to the new successor authority/authorities.

Cabinet agree to:

(a)  APPROVE the KCC Strategic Business Case for Local Government Reorganisation in Kent and Medway;

(b)  DELEGATE authority to the Chief Executive, in consultation with the Leader of the Council, to take the required actions to submit the finalised Strategic Business Case Submission to Government by the 28 November deadline.

(c)  DELEGATE authority to the Chief Executive to take other necessary actions, including but not limited to negotiating and entering into contracts or other legal agreements, as required to implement the decision.