The future of local government in Kenilworth and beyond has been further questioned today by a Deloitte report which claims there will be 'better value for money' if there is a north-south division of local democracy for Warwickshire.

The report, commissioned by the five district and borough councils in the county, has been produced ahead of tomorrow's county council discussion over local government reforms.

The Deloitte report would recommend a change from the current two-tier system, and would see Kenilworth's local governance (currently Warwickshire District Council) fall under the remit of the new body for the south of Warwickshire.

The meeting tomorrow will discuss the proposed plans by Warwickshire County Council to dissolve the current two-tier system in the county, to form just one unitary body, under the Government's proposed White Paper bill.

The county council's cabinet has already unanimously voted through these proposed plans.

The Cabinet came to that decision at the end of last month after considering the PWC 48-page report that claimed a new Warwickshire-wide authority would deliver "simplified, more accountable leadership with decision making that is closer to communities".

But the five councils, in a breakaway movement, have agreed to seek the public's views before formulating proposals for change once the White Paper has been published.

What does the Deloitte report say?

Deloitte's report found that creating two councils – splitting the county in a straight north-south geographical divide – would be the best way to provide better value for money, higher quality services focused on their communities.

Two unitary councils would also foster stronger local leadership, giving clearer lines of responsibility and accountability.

A council for South Warwickshire would encompass the current Warwick District and Stratford District Councils. Whilst the North Warwickshire Council would amalgamate the boroughs of Bedworth and Nuneaton, North Warwickshire, and Rugby.

Views will be sought on options for the county.

The new authorities would replace the current two-tier system in the county, where the county council is responsible for certain services such as highways, transport and social care, and the five borough and district councils are responsible for others such as planning, waste collection and leisure.

Although the report, commissioned by the five councils, found having a single authority for the whole of Warwickshire would save marginally more money overall, different levels of council tax could remove those savings. A unitary body would also 'diminish local leadership' and would harm the quality of service provision locally.

While the two new unitary authorities would be separate, the Deloitte report also recommended collaborative working for services such as children's care and waste disposal, as well as becoming full members of the West Midlands Combined Authority for higher-level strategic economic development and transport.

Crucially, the report found the county's clear north-south divide in terms of the economy, health needs and demographics means having two unitary authorities would represent better value for money than having one authority controlling the whole of the county, saving more than £25 million a year in taxpayers' money, compared to the current system.

What have the district and borough councils said?

In a joint statement, the five leaders said: "This is about giving our residents great value, great quality local government services, fit for the next 50 years and best able to meet whatever challenges may lie ahead for our communities.

"All local authorities are under financial pressure already, and Covid-19 has only made the situation tougher.

"Saving our taxpayers money while delivering high quality, modern local government services is of the utmost importance.

"We are keen to carefully consider all the options to achieve this goal and look forward to having a meaningful discussion with those who live and work in the county about the future. If that means reorganising our two-tier system, then we will support that.

"Although having one authority for the whole of the county may initially save the most money, the report makes it crystal clear the needs of Warwick and Stratford's residents are very different to those in the north of the county and, therefore, creating two unitary authorities could well be the best option for all.

"The county is quite unusual in the sense that the north is clearly distinct from the south in all sorts of ways.