Newcastle-under-Lyme would have its own unitary authority under new proposals to reorganise Staffordshire's councils.

Leaders at Newcastle-under-Lyme Borough Council say they are still opposed to the government's 'forced' overhaul of local authorities, believing that Staffordshire's current two-tier system works well.

But they say that if local government reorganisation (LGR) does happen, Newcastle should have its own unitary council, separate from Stoke-on-Trent and other parts of the county. At the moment, some council services in Newcastle, including bin collections, are delivered by the borough, while others, such as social care and highways, are delivered on a Staffordshire-wide basis by the county council.

Under the borough council's preferred option, all these services would be provided by a single unitary serving Newcastle's 128,000 residents. A council report acknowledges that this population size falls 'some way below' the population target of 500,000 for new unitaries, set by the government.

But it says that some existing unitaries such as Rutland are even smaller, and that Newcastle borough has a 'cohesive geography'.

Council leader Simon Tagg said: "Under the two-tier system this council has delivered good quality front-line services while our annual efficiency reviews have resulted in more than £10 million of budget savings since 2018.

"We think that system works well for residents, but if change is forced upon us then we believe the best way to carry on serving our communities, save money and preserve the very things that make our area special is for a unitary council covering the existing borough boundary."

Newcastle-under-Lyme Borough Council's preferred option for local government reorganisation, which would see a unitary covering only Newcastle-under-Lyme (image via LDRS)

The government says that unitary authorities will be more efficient and effective than the current two-tier council system. But the borough council's own analysis indicates that the Newcastle-only model would be one of the least cost-effective options, with a maximum 'structural shortfall' of £6.1 million predicted over the next five years, representing 2.9 per cent of revenue spending.

The report says that sharing services such as IT and procurement with other councils would be 'essential' to reduce this shortfall.

Four other options for LGR were considered by the borough council, including merging Newcastle with the Staffordshire Moorlands or Shropshire.

The Newcastle-only option had the backing of 59 per cent of the 1,380 people who responded to council's survey on the issue. This option would see a separate unitary covering Stoke-on-Trent and the Staffordshire Moorlands, with two more in the south of the county.

Most councils in Staffordshire, including Stoke-on-Trent City Council, favour dividing the county into northern and southern unitaries, while the county council is backing an east-west split.

Phil Catney, senior lecturer in politics at Keele University, thinks the borough council will find it difficult to persuade the government to accept a unitary covering only Newcastle. Dr Catney said: "The report is a strange document. The borough council seems to be basing most of its argument on the strength of local feeling, but I don't think that it's going to have much credibility in Whitehall.

"Having a unitary with a population of just 128,000 will not meet any of the government's objectives around economics of scale. I don't necessarily think that super-sized councils are the way to go, but that is what the government wants from LGR."

The Newcastle-only option has the support of the opposition Labour group on the borough council. But Labour councillors have accused the authority's Conservative leaders of 'hypocrisy', after they previously voted against a proposal to only investigate the Newcastle unitary model.

Labour councillor Andrew Fox-Hewitt said: "The Labour group has consistently championed a unitary authority that puts Newcastle-under-Lyme first. We welcome the fact that the Conservative leadership has finally seen sense—but residents deserve honesty, not revisionism."

Councils have been asked to submit their final proposals for LGR to government by November 28. Cabinet members will back this proposal at their meeting on November 4, ahead of a special full council meeting on November 19.