Council services ‘could suffer due to social care costs’ if government creates ‘super councils’
Council services such as leisure centres and waste collection could suffer due to the cost of social care if the government goes ahead with plans to scrap district councils in favour of “super councils”, local government sources have claimed.
They told Sky News the government is considering getting rid of district councils, which are responsible for waste collection, housing, leisure centres, local economics and regeneration.
District councils, also called borough or city councils, along with larger county councils would be merged to make “super councils” – or unitary councils – covering an entire region, the sources said.
The changes are expected in the English devolution white paper, set to be published soon, after Chancellor Rachel Reeves said in her October budget she wanted to make council structures “simpler” by reorganising them.
However, there are concerns the rising cost of social care, which larger county and unitary councils have to legally fund, will pull funding away from the basic but essential services district councils provide.
There is also a worry these large councils will become detached from local communities, despite Ms Reeves saying she wanted the reorganisation of council structures “to meet the needs of local people”.
People swim at Banbury Lido at Woodgreen Leisure Centre in Oxfordshire. File pic: PA
Bridget Smith, Lib Dem leader of South Cambridgeshire district council and vice chair of the District Councils’ Network (DCN), told Sky News: “Unitary and county councils are struggling financially, and in many cases going under, because of the ever-increasing demands of social care.
“It will be no different for these proposed ‘super councils’.
“The danger is social care will suck up all the resources which districts currently spend on place making, economic development, preventing ill health, improving quality of life and so much more.”
She added that simply reorganising local government is “simplistic and naive” and will cause new problems for local communities, and for the government’s housing targets as district councils are responsible for housing.
There is also concern if councils were merged it would take about three years to convert, which would take up all a council’s time, potentially bringing projects to a halt, including house building.
Read more:
Rising cost of social care and school transport to cause blackhole
End Right to Buy, govt urged
Andy Burnham has been Greater Manchester’s mayor since the role was created in 2017
Sam Chapman-Allen, chair of the DCN and leader of Breckland district council in Norfolk, said there are examples across England where devolution – handing power and funding from national to local government – is working well, such as Manchester where 10 district councils work together under the mayor of Greater Manchester.
Smaller examples include South Lincolnshire, where three councils work together with a shared senior team.
“I wouldn’t say my members are nervous about change because they’re really nimble, agile organisations, but we want to work with government to get the best outcomes for their residents and businesses,” he told Sky News.
He said district councils also provide lots of preventative “non-traditional” social care schemes off their own backs, such as supporting people to live a healthy life, which means they take pressure off the traditional social care system.
Housing and blocks of flats in west London. Pic: PA
Conservative shadow housing, communities and local government secretary Kevin Hollinrake told Sky News: “Services have to come first so you want to make sure they’re maintained and improve social care, and of course it’s the biggest part of the discretionary budget. It’s a valid concern.
“On the face, there are savings moving from two tier to one tier, but you don’t want the council or councillors to become too removed from what they’re serving.
“The worry here is this is an imposition rather than asking councillors if they want to move to unitary – that’s top down rather than bottom up.
“It’s perverse, you’re talking about devolving then telling councils what to do. It’s a bit of a paradox.”
Please use Chrome browser for a more accessible video player
Council tax hike linked to sell-offs
A spokesman for the ministry of housing, communities and local government said there are “no plans to abolish district councils” and any organisation will be “from the bottom up”.
He added: “No decisions have been taken on council reorganisation.
“Our priority is to focus on the transfer of power from Westminster and work with councils to create structures that make sense for their local areas and work effectively for local people.
“We have announced £1.3bn to help councils deliver essential services – including an additional £233m to help prevent homelessness, and will be providing greater stability with multi-year funding settlements, so we can get councils back on their feet.
“We will set out further details in the upcoming English devolution white paper.”
Democratic leaning organizations and members of Congress have announced plans to protest what they describe as the sale of access to the office of the US president, in reference to Donald Trump’s memecoin dinner on May 22. The event’s attendees are said to have collectively spent over $100 million for the chance to meet with the US president.
Since Trump’s memecoin project, Official Trump (TRUMP), announced that its top 220 tokenholders would have an opportunity to apply for an exclusive dinner with the president, many leaders in the crypto industry and US lawmakers have criticized the event, saying Trump was opening his office to potential bribery and corruption.
The memecoin dinner prompted some Democratic lawmakers to withdraw support for crypto-related legislation in Congress, including the market structure and stablecoin bills.
“Trump collecting gifts from foreign governments is unconstitutional,” a spokesperson for the consumer advocacy organization Public Citizen, which is planning to protest near the memecoin dinner on May 22, told Cointelegraph. “Collecting foreign government investments through his memecoin is not much better. American foreign policy should not be for sale.”
Crypto industry figures such as Tron founder Justin Sun, Kronos Research chief investment officer Vincent Liu, Hyperithm co-CEO Oh Sangrok, and Synthetix founder Kain Warwick are among the tokenholders expected to attend the dinner at the Trump National Golf Club outside Washington, DC. The memecoin project said all applicants had to pass a background check and could not be from a “[Know Your Customer] watchlist country.”
Related: Democrats seek suspicious activity reports linked to Trump crypto ventures
Public Citizen, in partnership with progressive political organization Our Revolution, will hold a rally near the golf club, which Oregon Senator Jeff Merkley is expected to attend. In addition, the Arlington and Loudoun Democrats will be hosting a separate event to urge US officials to “hold [Trump] accountable,” and Democratic leadership in Congress has scheduled two press events on May 22 ahead of the dinner.
“Americans cannot and will not accept President Trump’s view that positions of power exist only to benefit the holder of that power,” Ryan Ruzic, chair of the Loudoun County Democratic Committee, told Cointelegraph. “We have a moral responsibility to speak out against corruption, whatever the result may be.”
Pushback on TRUMP memecoin affected crypto legislation
Some lawmakers initially cited the memecoin dinner and the Trump family’s involvement with the crypto platform World Liberty Financial in opposing passage of the GENIUS Act, a bill to regulate payment stablecoins. World Liberty Financial began issuing its own USD1 stablecoin in March, prompting concerns about Trump’s conflicts of interest. However, the legislation passed a key procedural vote in the Senate on May 19 with support from Democrats, setting the bill up for debate in the chamber.
“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans,” said Sen. Mark Warner in a statement before the May 19 vote, adding: “But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”
Senator Chris Murphy, who voted against advancing the GENIUS Act, called for bipartisan support in amending the bill to specifically bar a US president from issuing stablecoins. He also called on the White House to release a complete list of attendees to the memecoin dinner, suggesting that some or all of them would “try to get something from the president” in exchange for purchasing the tokens.
Murphy and Senator Elizabeth Warren will attend a press event with representatives for Public Citizen on May 22. California Representative Maxine Waters, ranking member of the US House Financial Services Committee, announced a separate press conference for the same day, with plans to introduce a bill to “block Trump’s memecoin and stop his crypto corruption, once and for all.”
As of May 21, the exact number of attendees to the dinner was unknown. A smaller group of 25 tokenholders also qualified to apply for “VIP tour” and reception — presumably at the White House — with Trump, but the complete list of those planning to attend was also unknown at the time of publication.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
The Texas House of Representatives has passed the third reading of SB 21, a bill that seeks to establish a strategic Bitcoin reserve in the state. The bill passed in a 101-42 vote and will now go to Texas Governor Greg Abbott to either sign into law or veto.
SB 21, authored by state Senator Charles Schwertner, establishes a Bitcoin (BTC) reserve that is managed by the state’s comptroller. The legislation allows the comptroller to invest in any cryptocurrency with a market cap above $500 billion over the previous 12-month period. Currently, the only cryptocurrency fitting the requirement is Bitcoin.
Before the vote, state Representative Giovanni Capriglione said to the chamber that the bill was a “pivotal moment in securing Texas’s leadership in the digital age with the passage of our strategic Bitcoin reserve. Now, we embrace a modern asset with traditional properties for future promise.”
This is a developing story, and further information will be added as it becomes available.
Stablecoin adoption among institutions could surge as the United States Senate prepares to debate a key piece of legislation aimed at regulating the sector.
After failing to gain support from key Democrats on May 8, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the US Senate in a 66–32 procedural vote on May 20 and is now heading to a debate on the Senate floor.
The bill seeks to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.
Related: German gov’t missed out on $2.3B profit after selling Bitcoin at $57K
“This act doesn’t just regulate stablecoins, it legitimizes them,” said Andrei Grachev, managing partner at DWF Labs and Falcon Finance.
“It sets clear rules, and with clarity comes confidence. That’s what institutions have been waiting for,” Grachev told Cointelegraph during the Chain Reaction daily X spaces show on May 20, adding:
“Stablecoins aren’t a crypto experiment anymore. They’re a better form of money. Faster, simpler, and more transparent than fiat. It’s only a matter of time before they become the default.”
Senate bill seen as path to unified digital system
The GENIUS Act may be the “first step” toward establishing a “unified digital financial system which is borderless, programmable and efficient,” Grachev said, adding:
“When the US moves on stablecoin policy, the world watches.”
Republican Senator Cynthia Lummis, a co-sponsor of the bill, also pointed to Memorial Day as a “fair target” for its potential passage.
Grachev said regulatory clarity alone will not drive institutional adoption. Products offering stable and predictable yield will also be necessary. Falcon Finance is currently developing a synthetic yield-bearing dollar product designed for this market, he noted.
Yield-bearing stablecoins now represent 4.5% of the total stablecoin market after rising to $11 billion in total circulation, Cointelegraph reported on May 21.
Related: Stablecoins seen as ideal fit for real-time collateral management
GENIUS Act regulatory gaps don’t address offshore stablecoin issuers
Despite broad support for the GENIUS Act, some critics say the legislation does not go far enough. Vugar Usi Zade, the chief operating officer at Bitget exchange, told Cointelegraph that “the bill doesn’t fully address offshore stablecoin issuers like Tether, which continue to play an outsized role in global liquidity.”
He added that US-based issuers will now face “steeper costs,” likely accelerating consolidation across the market and favoring well-resourced players that can meet the new thresholds.
Still, Zade acknowledged that the legislation could bring greater “stability” to regulated offerings, depending on how it is ultimately worded and enforced.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway