Councillors have voted to halt the merger of Caerphilly and Blaenau Gwent Councils’ social services departments over fears that Caerphilly taxpayers would end up subsidising services in Blaenau Gwent.
A three-year programme to fully integrate the two services began in 2011 and was due for completion in 2013/14. Councillors were told the financial position of Blaenau Gwent had worsened since the project to pool budgets was first started and that a full merger would put taxayers in Caerphilly at risk.
Caerphilly County Borough Council’s cabinet met on Tuesday and decided to stop the merger. Blaenau Gwent councillors are due to meet on Wednesday to discuss the issue.
Cllr Keith Reynolds, the council’s deputy leader, said the decision was the only sensible way forward.
He said: “It was always going to be predicated on the business case for merging.
“In local government there are too many uncertainties ahead of us, including a comprehensive spending review by the UK government and the effect that could have on the Welsh assembly.
“Collaborative management should only take place where there is a robust business case.”
Speaking prior to the meeting, Nigel Barnett, acting chief executive of Caerphilly County Borough Council, said: “This recommendation to members is certainly not one which has been made lightly, however we simply must acknowledge that, given the current and forthcoming pressures on public sector finances, we must do what is right by the citizens of our county borough
“I firmly believe that at this point in time, in order for us to prioritise funding for essential frontline services including social services provision, we must be in a relatively strong financial position, and not one whereby we are at risk of cross subsidisation.”
The opposition Plaid Cymru group has expressed concern about the scrapping of the merger.
Colin Mann, leader of the Plaid Cymru group on Caerphilly Council, said: “It is disappointing that after considerable work, which began nearly two years ago, the integration of the two departments will not now go ahead.
“I accept the view of officers that Blaenau Gwent’s financial position has worsened and there was a risk of Caerphilly taxpayers cross subsidising Blaenau Gwent in the future.”
Plaid Councillor Lyndon Binding, chair of the joint committee charged with taking the project forward, added: “However, I do regret that it has not been possible to proceed with the integration as proposed, although there may be opportunities for collaboration on an individual basis in the future.
“My biggest concern is that this decision to end the proposed merger does not put any vulnerable people at risk. They must be a priority.”
CAERPHILLY AND BLAENAU GWENT SOCIAL SERVICES INTEGRATION PROGRAMME – DECISION TO PROCEED OR NOT
Surely this must be a very big nail in the coffin of Blaenau Gwent. Why bother with this council? Surely this is Valleys' parochialism gone mad ? Perhaps Cardiff can do things even cheaper ?