Taxpayers billed £160k for failed Warwick and Stratford district council merger

By James Smith

19th May 2022 | Local News

The two councils voted in favour of the merger in December (Image via James Smith and Google.maps)
The two councils voted in favour of the merger in December (Image via James Smith and Google.maps)

The failed merger between Warwick and Stratford councils has cost district taxpayers nearly £160,000, it has been revealed.

Figures obtained via freedom of information requests also show that the two councils would have spent a further £200,000 a year until the merger was complete.

Money spent by Warwick District Council included £22,000 for a report by Deloitte, £31,750 for the public consultation and around £12,000 for a report on a new shared office.

And MP for Warwick and Leamington Matt Western, who gathered nearly 1,800 signatures on a petition calling for a referendum on local government, said the financial loss was a huge blow for the public.

"I've opposed this ill-fated merger from the start and, though no doubt savings will be made, in this difficult moment our taxpayers need stability, security and wise investment," he said.

Matt Western MP said the merger collapse was coming out of residents' pockets

"Residents have endured rising council tax for more than a decade and national tax rises will also hit them hard.

"A lot of the services the council says will result in savings, involve billing the public anyway, like the 123+ bin collection service.

"These are additional income streams not mentioned by the Conservatives in their 2019 manifesto."

And he said that this on top of putting up parking charges, parking permit costs and rents was "crippling families".

Cost Saving

Despite the near £160,000 spend so far - not including that contributed by Stratford-on-Avon District Council - WDC has said that the merger has already saved the public money.

When the merger collapse was revealed last month council leader Cllr Andrew Day said the council had not "squandered money pursuing this".

"This is a disappointing outcome but it should not mean an end to the positives that this process has generated," he added.

"We have learned a lot and wish to carry on as good partners.

"It is anticipated that some of the joint working arrangements already put in place will continue."

WDC leader Cllr Andrew Day said money had not been wasted on the merger

However, the same FOI requests, submitted by Mr Western's office, revealed that the savings had not been as high as councillors had promised.

£10,000 was saved from the procurement for the new bin contracts.

And savings in the joint management team totalled £156,000 to date - however this arrangement ended on May 12 as a result of the merger collapse.

The council did say that annual savings from new bin collections are expected to be £211,200 per year. And that from April 1 2022, shared legal services will save £90,000 annually.

The new local plan being compiled by the two councils is also expected to save £500,000 in total.

     

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