Plan to transfer assets gets the go ahead

Last week the Cabinet approved a report on local service delivery and the transfer of some services and assets from Cheshire East to Town and Parish Councils.

The report sets out the current proposals for what should be transferred initially, starting from April 2012, and shows that Cheshire East are proposing to transfer full responsibility for some civic and community halls, allotments, public conveniences, markets and other services such as hanging baskets and Christmas lights and trees.

A number of other assets, including play areas, footpaths, parks, ponds and ditches, were originally included in the discussions but Cheshire East have decided not to transfer these at this stage.

Wilmslow has assets in the town that are relevant to this transfer, but given Wilmslow Town Council was only formed in May 2011 they have not had time to consider this policy so it is proposed that negotiations are carried out with Wilmslow Town Council and transfers are implemented where appropriate in April 2013.

However, it is expected, that Wilmslow will be treated consistently in April 2012 with regard to the more minor services such as Christmas lights, street furniture and hanging baskets which Cheshire East will no longer provide.

This is the first phase of an ambitious programme of service and asset transfer designed to give each Town and Parish Council an increasingly important role in deciding what should be delivered in its locality and how this is best delivered.

The legal terms for each transfer will be negotiated on an individual basis with each Town or Parish Council, but it is anticipated that community centres would be by freehold transfer for disposal at a nominal value of £1 and that both parties will agree on either a transfer or a lease arrangement for the markets and public conveniences, with allotments likely to be transferred by way of a long lease.

This programme aligns with national policy designed to decentralise government and give communities power to make a difference in their area. Further transfer and devolution is planned.

This initiative is expected to result in a saving of up to £450,000 per year for Cheshire East, with additional savings from support services once the transfers are complete.

In 2009/10 an ear marked reserve of £625,000 was set aside to support the localism agenda of Cheshire East. Part of this fund will be made available to those Towns and Parishes councils taking on major transfers and such allocations will be discussed on the basis that they can only be claimed to specifically support the transition, and if the Councils can demonstrate that their own reserves cannot be used to support the transfers.

The remaining balance of this reserve will then remain to support future transfer or devolution of services.

The proposed transfer of services will result in some Town Councils needing to increase their level of precept. However, it is believed that part of the benefit of this initiative is that the Town Councils can either generate more income or tailor the services more effectively to bring an overall reduction in cost.

The issue of double taxation and whether this initiative will result in higher taxes has been raised by many councillors and residents across Cheshire East.

Back in April Councillor Wesley Fitzgerald said: "Any transfers are planned by April 2012 and if towns and parish councils have elected to provide services locally they will build this into their local precept - thereby ensuring that local residents pay for the very local services they receive. At the same time, such services will not be levied through the Cheshire East council tax."

Whilst this means that local residents will not be charged twice for the same service or asset, it is still unclear whether some residents will face a higher tax bill.

Earlier this month I enquired whether the Cheshire East Council Tax would be reduced to reflect that they are no longer providing certain services and assets.

Cheshire East issued the following response:

"There are various negotiations in progress to transfer assets to town and parish councils where this makes sense to both parties. No definitive decisions have been made on this and the financial implications are not always a straightforward case of transferring costs.

"Often the town or parish council has ideas as to how they can deliver services differently and in a way that is more tailored to the community they represent. Any decision taken is considered in the light of potential service improvements, financial implications to Cheshire East and to the relevant town or parish council. We would not expect a direct correlation between the financial cost to Cheshire East and a new cost to a town or parish council as the delivery method will change."

Tags:
Cheshire East Council, Transfer of Assets & Services
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