The financial case for two councils
The financial modelling and independent analysis make a strong and unambiguous case that the two-unitary model delivers robust savings, long-term resilience and is the right scale to withstand future financial pressures. This is achieved whilst avoiding the risks and inefficiencies associated with the one unitary proposal and three unitary proposal. Read below for more detail.
It delivers the highest potential recurring savings of all options
Assessment by PwC shows the two-unitary model has the potential to produce the largest financial benefits annually including:
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£59.8 million recurring annual savings
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£21.9m transition benefits and £37.9m transformation benefits
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It repays its transition costs in just over three years
It is the lowest-risk option for long-term resilience in Oxfordshire and West Berkshire
The CIPFA Financial Resilience Index analysis shows the two-unitary solution has the lowest total risk score which means it has better resilience to financial shocks and has a greater ability to avoid the financial failures seen elsewhere in local government.
It strengthens West Berkshire’s financial position, removing existing structural risk
West Berkshire currently requires Exceptional Financial Support. The two-unitary model resolves this by combining it with a larger, sustainable footprint. This prevents the regionfrom inheriting a financially unstable authority under any future devolution deal.
​The modelling shows West Berkshire’s financial position will not have an overall negative impact on Oxfordshire
It delivers efficiency through optimal scale - not too big, not too small
Two councils of roughly equal size (around 470,000 residents each by 2028) are large enough to deliver efficiencies and share specialist services and small enough to stay connected to communities. They are at the ideal scale recommended in government guidance. This “Goldilocks” scale is key to long-term financial health.