Paving the way for two new unitary councils

• The client: Cumbria’s local authorities, undergoing reorganisation as seven councils dissolved to form two new unitary bodies – Cumberland Council and Westmorland and Furness Council

• The challenge: Splitting county wide service contracts across an east west geography while reviewing 122 agreements to prevent service breakdowns, cost escalations, or disruption to vital public care

• The outcome: Delivered detailed legal and operational advice on splitting contracts, ensuring both new unitary councils maintained seamless, uninterrupted service delivery for local communities

We advised on the implications of transferring Cumbria’s services under the local government reorganisation.

After much debate, the seven existing local authorities in Cumbria were to be dissolved and replaced by two new, separate unitary councils – Cumberland Council and Westmorland and Furness Council, based on an East-West geography. Central government approved the change with a bespoke piece of legislation in March 2022, which stated all work must be completed by 1 April 2023.

Yet splitting a county the size of Cumbria in half and making sure key public services are transferred without disruption is a significant undertaking. So, the council asked the local government experts at Anthony Collins (AC) for legal advice.

The challenge

Splitting contracts

The overriding aim was that each new council would have their own services. They, therefore, had to consider what they could do with existing contracts for county-wide services such as adult social care, children, public health, highways and transport.

The unique challenge was the change in geographical scope, so they wanted to know for each contract what their options were and what the rules said about a split.

Understanding how local government works

These services are vital to the local communities – they mean a child with special needs is picked up for school on time or an elderly person with dementia gets the right care package.

No one could drop through any cracks once the services were transferred. The same high level of service needed to be provided and the transition had to be seamless.

So, we adopted a team approach, including contract lawyers from all the different sectors, plus our experts who understood the local government reorganisation. This enabled us to give an informed view across the whole project.

Focusing on the detail

We reviewed 122 individual contracts, advising on the terms of the contract and outlining what options the council would have.

As well as giving generic advice on framework agreements, we took a deep dive into 26 specific contracts, looking at all the liabilities and highlighting any risks or potential challenges.

After careful consideration, we advised on how the contracts could be split. We also provided advice on agreements that would be necessary and operational issues that might arise to ensure the contracts would be managed appropriately in the future.

The solution

Inevitably, reorganisation on this scale and pace is all about how well it is implemented. Delivering services in an economic, efficient, effective, safe, legal and seamless fashion ensures that both councils benefit from vesting day, and provide a foundation for further future transformation.

And while legally you may be able to split contracts, it’s important to consider the practical implications. A taxi operator based in the south of the county, for example, might not be able to feasibly operate on an east-west geography.

The impact

We made sure we looked at what each contract would involve for those concerned so the service would continue to be delivered effectively. The council could not risk the provision breaking down, the contract being handed back, or costs escalating.