FINANCE

LGA bows to Core Cities threat to quit

LGA set to embark on a massive overhaul of its board structure in a bid to pacify the Core Cities group and keep them in its membership.

The Local Government Association (LGA) is set to embark on a massive overhaul of its board structure in a bid to pacify the Core Cities group and keep them in its membership.

Under the new proposals, the LGA is poised to introduce a new board for cities – including both the Core Cities group and the newly formed key cities, with additional places for SIGOMA, the special interest group for metropolitan areas.

In addition, a further board would be created for non-cities – consisting predominantly of the County Councils Network and District Councils Network– using the working title of a ‘people and places' board.

The plans will go to the executive meeting, taking place at the LGA today (21 November), before it is put before the LGA general assembly in January, to come into force from 1 February 2014.

Today's meeting will coincide with the Core Cities summit, which is also being held in London today.

The shift has come in response to the core cities' threat to withdraw from the LGA earlier this year.  All eight gave notice to quit the association, which means they could leave from 1 April 2014.

In a statement put out at the time, the Core Cities made it clear their mass resignation was not a fait accompli, saying: ‘Core Cities have therefore invited the LGA to participate in discussions to explore options for our future relationship.'

A possible withdrawal would be disastrous for the Labour group within the association, which is likely take the balance of power after the local elections next year.  Without the Core City membership, the chairmanship of the LGA – which is currently held with a 0.6% majority by the Conservatives – would be likely to stay with the Tories.

Both the LGA and the Core Cities refused to comment other than to confirm that discussions between the two are ongoing.

Under the new structures proposed, some of the existing boards would be scrapped, but The MJ understands the LGA has faced some opposition to the prospect of disbanding parts of the existing system.  As yet, no final decision has been made on scrapping any of the boards.

In addition, the position of chair of the cities board is set to be hotly contested, with competition from leaders of the key cities, Core Cities and London.

 

Heather Jameson

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