Paving the way for two new unitary councils

We advised on the implications of transferring Cumbria’s services under the local government reorganisation.

After much debate, the seven existing local authorities in Cumbria are to be dissolved and replaced by two new, separate unitary councils – Cumberland Council and Westmorland and Furness Council based on an East-West geography. Central government approved the change with a bespoke piece of legislation in March 2022 which stated all work must be completed by 1 April 2023.  

Yet splitting a county the size of Cumbria in half and making sure key public services are transferred without disruption is a significant undertaking. So, the council asked the local government experts at Anthony Collins (AC) for legal advice.      

Splitting contracts

The overriding aim was that each new council would have their own services. They, therefore, had to consider what they could do with existing contracts for county wide services such as adult social care, children, public health, highways and transport.

The unique challenge was the change in geographical scope so they wanted to know for each contract what their options were and what the rules said about a split.

Understanding how local government works

These services are vital to the local communities – they mean a child with special needs is picked up for school on time or an elderly person with dementia gets the right care package.

No one could drop through any cracks once the services were transferred. The same high level of service needed to be provided and the transition had to be seamless.   

So, we adopted a team approach, including contract lawyers from all the different sectors plus our experts who understood the local government reorganisation. This enabled us to give an informed view across the whole project.

Focusing on the detail

We reviewed 122 individual contracts, advising on the terms of the contract and outlining what options the council would have.

As well as giving generic advice on framework agreements, we took a deep dive into 26 specific contracts, looking at all the liabilities and highlighting any risks or potential challenges.

After careful consideration, we advised on how the contracts could be split. We also provided advice on agreements that would be necessary and operational issues that might arise to ensure the contracts would be managed appropriately in the future.

Making it work in practice

Inevitably, reorganisation on this scale and pace is all about how well it is implemented. Delivering services in an economic, efficient, effective, safe, legal and seamless fashion ensures that both councils benefit from vesting day, and provide a foundation for further future transformation.

And while legally you may be able to split contracts, it’s important to consider the practical implications. A taxi operator based in the south of the county, for example, might not be able to feasibly operate on an east-west geography.

We made sure we looked at what each contract would involve for those concerned so the service would continue to be delivered effectively. The council could not risk the provision breaking down, the contract being handed back or costs escalating.  

The AC team have been pleased with how smoothly the whole process has gone without any challenges. We’ve been able to support the council in completing this review to ensure there is no disruption to services. 

“This was a particularly complicated case due to the county being split east to west. But, with our experience of this type of legislation and our local government knowledge, we navigated the issues successfully and delivered our advice in a timely manner.”  
Claire Ward, partner, Anthony Collins