The Cost of Local Government Structural Reorganisation in Great Britain during the 1990s

Abstract

When the structure of local government in Great Britain was reorganised during the 1990s, considerable emphasis was placed by the government on the financial savings which would accrue to offset the costs incurred in making the changes. Previous work examined these expectations and found clear evidence that the ex ante estimates of transition costs given to the Westminster parliament were serious underestimates, and that the expected savings had not, at that time, materialised. This work was done at a time when it was known that some of the official data on transition costs would not be complete until after the close of the 2000/01 financial year. The author's primary purpose is to place on record what may be regarded as the final estimates of the transition costs in England, Scotland, and Wales. In addition, comparisons between the ex ante estimates of the costs of structural change and the ex post evidence concerning actual costs are updated. The discrepancy between these is such as to confirm the need for some form of independent scrutiny of new legislation at the time when it is being considered in parliament, to ensure that decisions are taken in the light of realistic assessments of the costs and benefits of proposed enactments.