Is Labour plotting town hall shake-up?

12.00.00am BST (GMT +0100) Wed 21st Sep 2005

Fears emerged this morning that Labour chiefs could be plotting to redraw council boundaries in response to losing power in former heartland seats.

Mike German, Assembly leader of the Welsh Liberal Democrats, has called on Local Government Minister Sue Essex to end growing speculation of another wholesale re-organisation at a time when two major reviews are looking at the funding and workings of local government. Mrs Essex refused to rule out local government reorganisation when questioned on it in committee today.

Mr German, Welsh Liberal Democrat spokesman on local government, said: "The question must be asked - does Labour have a hidden agenda here? Do they want to reorganise our councils once again?

Instead of giving a clear answer that her reviews were not heading in that direction the Minister talked about how the previous reorganisation of our councils was badly done.

"Sue Essex must make it clear where she stands on this issue. If she fails to rule it out then uncertainty will hang over our town halls. Clarity on Labour's intentions is needed now."

At present there are two reviews of local government in progress. The Beecham Review is looking at how Welsh local government works to deliver local services. The Lyons Review is looking at how local Government is paid for - although primarily concerned with England, any resulting changes to council tax would have an impact on local taxation in Wales. Welsh Liberal Democrats have been campaigning for council tax to be scrapped and replaced with a fair local income tax.

Labour has lost control of four flagship councils in the last two years. Cardiff, Swansea, Bridgend and Wrexham Councils are all led by Liberal Democrat leaders.