The leader of the smallest district authority in Devon claims the Government is going to “squeeze” rural councils until they “bleed dry” as it presses ahead with local government reorganisation, writes Alison Stephenson.

But Cllr Mandy Ewings (Ind, Tavistock South West) issued a rallying call to members of West Devon Borough Council to keep doing their best with the finances they have got for the time-being.

The Government is looking to abolish the two-tier system of district and county councils which exists in Devon in favour of unitary councils covering larger geographic areas, possibly overseen by a mayor covering a strategic authority of Devon and Cornwall.

Exeter City Council is bidding for unitary status by including parts of East Devon, and Plymouth, which is already a unitary, hopes to extend its boundaries into the South Hams.

But how the rest of Devon will be controlled is unknown and district councils have begun talks to discuss possible mergers.

With 57,000 residents, West Devon would have to join with several other councils to be of a population size set by the government for a new unitary authority.

There is flexibility on the 500,000 population rule, however, if areas can put forward a strong case showing they are growth areas.

West Devon’s overview and scrutiny committee was told this week that rural councils are getting “very little” of new ‘recovery grants’ issued by the government to run services.

The Government says it wants to “start to correct the unfairness of the current system” and “lay the foundation for future reform” with a new £600 million recovery grant, which is being allocated on deprivation, population and ability to raise income locally.

Deputy chief executive of West Devon Borough Council Steve Mullineaux said it was “crystal clear” what direction the Government was heading by issuing metropolitan authorities like Liverpool and Manchester with the most funds of around £20 million or more. West Devon received £63,000.