North Hertfordshire could be "saddled" with a "bankrupt" council that would be "destined to fail" if the four-model option for reorganising local government is chosen, the leader of Hertfordshire County Council has claimed.

At a meeting of North Herts Council on Thursday (November 13), Liberal Democrat Cllr Steve Jarvis said that a new Central Hertfordshire unitary authority would be "bankrupt" and "have debts of £100m in 10 years".

Under a government-led reorganisation of local government, Hertfordshire County Council and all 10 district and borough councils in the county are set to be abolished, with unitary authorities created instead.

The new authorities will take over all local government responsibilities in the areas they cover. It means that services previously divided between the county council and district council will be placed under the control of a single authority.

In Hertfordshire, a 410-page joint submission from all 11 councils will be put forward to the Government later this month, with each council supporting one of three options – for the county to be divided into two, three or four unitary authorities.

North Herts district councillors, at their meeting on Thursday, voted in favour of a two-unitary model with the county split into eastern and western halves – despite the leader of the council's minority Labour administration, Cllr Daniel Allen, backing the four-unitary option.

A final decision on which model is formally supported by North Herts Council will be made by the Labour cabinet at a meeting on Wednesday, November 19. 

The four-unitary model would see North Herts joined with Stevenage and Welwyn Hatfield to form a new Central Hertfordshire authority, though wards covering Royston, Ermine, Arbury and Weston & Sandon would split off into an Eastern Hertfordshire authority also comprising Broxbourne and East Herts.

The proposed Central Hertfordshire authority would cover a population of around 352,000 people, and there would be 100 councillors sitting on the new authority.

Financial modelling suggests the four-unitary option would save a total of up to £124 million across Hertfordshire over the first 10 years when compared to the current system of local government.

Cllr Daniel Allen said: "Local government reorganisation isn't just about maps and boundaries; it's about making sure that every resident has a council that understands their community, their challenges and their hopes for the future.

"That's why I believe the four-unitary model is the right choice for North Hertfordshire and for Hertfordshire as a whole.

"It keeps power local, in the hands of the people who know their communities best.

"The four-unitary model … lets us build councils that reflect real communities. Look at the A1 corridor, the East Coast Main Line, our hospitals, colleges and universities – these are the lifelines that tie North Hertfordshire to our neighbours and will tie a central unitary together.

"Conservative Broxbourne, Liberal Democrat Dacorum and Green-led East Herts have all backed the four-unitary option, proving that when it comes to local democracy, we can find common ground and use common sense.

"The four-unitary model is practical, fair and rooted in the places we serve."

The leaders of the Liberal Democrat and Conservative groups, however, voted in favour of the two-unitary model.

That would see North Hertfordshire joined with Broxbourne, East Herts, Stevenage and Welwyn Hatfield as part of an Eastern Hertfordshire authority. It would have a population of around 611,000, have 117 councillors and use neighbourhood forums to help "retain strong local representation", according to documents submitted to the government.

Financial modelling predicts it would make a total saving of up to £418 million over its first 10 years when compared to the current system of local government.

Cllr Jarvis, the Liberal Democrat leader of the county council, said: "The real reason why we should go for two rather than four is the financial one.

"The central unitary will be bankrupt. It will have debts of £100 million in 10 years.

"The councillors won't be delivering for local people because they'll be replaced by commissioners.

"The central unitary won't be able to deliver its statutory responsibilities to care for the elderly and disabled, and to keep children safe.

"It will fail. It is grossly irresponsible to suggest that we should saddle the people of North Herts with a council that is destined to fail."

Cllr Jarvis was backing his group leader at North Herts Council, Cllr Ruth Brown, who said the two-unitary model was the "simplest [and] the least disruptive".

She said: "All the models will involve larger areas than the current ones. The two-unitary will have more resources and capacity to set up neighbourhood area committees and strengthen town and parish councils.

"It will be the most cost-effective, and it aligns best with police, health and planning partnerships."

The leader of the Conservative group, Cllr Ralph Muncer, also voted in favour of the two-unitary model and spoke out against the four-unitary option.

He said it would be "disruptive, reckless and irresponsible". He continued: "The central unitary authority proposed in this [four-unitary] model would have a £22m budget deficit in its first year.

"It would contain 26% of Hertfordshire's population, yet 35% of its most deprived areas, putting unsustainable pressure on the services it would require to be delivered to local people.

"It has the highest number of children looked after; the highest number of children with EHCPs; the highest number of households on housing waiting lists; the highest number of requests for adult social care.

"It will result in more disruption faced by our residents, and it will result in residents paying higher council tax".

He said the Conservative group would "reluctantly" vote for the two-unitary option to help ensure the four-unitary model was "off the table".

But, with the final decision resting with the council's Labour cabinet, he warned: "If cabinet were not to back the will of council, then questions would understandably be raised as to council's confidence in the administration to govern and discharge its responsibilities to deliver for the people of North Hertfordshire."

After the meeting, Liberal Democrat deputy group leader Cllr David Chalmers said: "Let's see how the cabinet decides to vote.

"We hope they make the right decision for the residents of North Herts."

In total, 24 North Herts councillors voted for the two-unitary model while 17 voted for the four-unitary option. 

A consultation on local government reorganisation earlier this year received feedback from 587 North Hertfordshire residents, with 390 expressing a view in favour of a model. 151 backed the four-unitary option, while 144 preferred the two-unitary model.

A Government consultation on the proposals for local government reorganisation in Hertfordshire is expected in spring next year, before a final decision is made in the summer.

The provisional timeline sets out that elections to the new unitary authorities would be carried out in May 2027 before taking over from the current councils in 2028.