Devon County Council is asking the Government to reimburse the costs it has already spent preparing for local government reorganisation, a programme that has now been paused.
The council will write to the Secretary of State to request repayment of the reasonable costs it incurred while following Government instructions and getting ready to implement the reorganisation before the pause.
While the Government has confirmed transition funding of £900,000 for each new authority, the county council says that will only cover a small part of the costs involved in one of the biggest changes to local government in a generation.
The original Exeter and Plymouth business case estimated implementation costs of £70.1 million across Devon, but the council's more recent work suggested the final figure could approach £90 million.
County councillors had been due to consider setting aside £30 million from reserves to help meet the costs of implementing the Government's preferred reorganisation model and to keep services running safely during the transition on Wednesday, September 9. That funding would have covered costs up to the proposed implementation date of April 1, 2028.
But after the Government announced earlier this week that it would pause implementation of its decision for Devon while it carries out a rapid review, councillors agreed not to create the proposed £30 million LGR reserve.
Instead, they will ask Ministers to reimburse councils for costs already incurred in preparing for the programme.
Councillor James Buczkowski, Cabinet Member for Finance, said: "The Government's position was explicit. Transition and implementation costs were expected largely to be met from existing local authority resources. That is why the paper before us proposed setting aside £30 million from Devon County Council's reserves.
"Had the Government's decision proceeded, whatever our views about it, we would have had a duty to make it work. We would have had to ensure that services remained safe and legal throughout the transition, and that whatever authorities emerged were capable of functioning properly from day one.
"Costs have already been incurred. Staff have already been diverted. Programme structures have been established. Professional and specialist work has been commissioned. Work has taken place across finance, HR, legal, data, ICT, governance and our statutory services because Government instructed councils to prepare for implementation.
"Somebody has to pay for that. And I do not believe that somebody should be the council-tax payers of Devon.
"I therefore think it is entirely reasonable that Government should meet the reasonable costs resulting from its decisions.
“Monday's announcement also gives us an opportunity. There is much that can be improved about the way local government operates in Devon. We can work together more effectively, share services and systems, reduce duplication and provide better value for residents.
“We should now have a serious conversation across Devon about how councils can work more closely together while protecting local democracy, local identity and local accountability.
“We can share more, collaborate more and save money without spending tens of millions of pounds abolishing councils and creating new organisations.”
Councillor Julian Brazil, Leader of Devon County Council, said: "The Government's decision to pause local government reorganisation is an opportunity to take stock and have a more constructive conversation about the future of local government in Devon.
"Councils across Devon have already shown that we can work together effectively, and there is much more we can do.
“We should be looking at how we can share services, share expertise, reduce duplication and deliver better value for taxpayers, while keeping decision-making close to the communities we serve.
"At the same time, it is important that the Government recognises the costs councils have already incurred in responding to its instructions and preparing for implementation."
Devon Seeks Reimbursement for Paused Reorganisation Costs