The Association of District Councils said the DoE had given verbal assurances that the allocation of supplementary credit approvals to cover the cost of reorganisation would come out of the control totals for public sector spending and would not be top-sliced from local government's allocation.
The comments follow the leak to LGC last week of the draft consultation paper on the funding of review transition costs. It says they would have to be borne locally and mainly from accrued savings.
ADC finance under-secretary John Blundell said the cost of reorganisation 'would not be at the expense of other councils'. He gave the draft consultation paper a qualified welcome.