A referendum should be held on the decision to merge Richmond and Wandsworth councils, the leader of Richmond’s opposition said.

Yesterday, it was announced the two councils will merge services from March 2017, with Richmond’s chief executive, Gillian Norton, retiring in summer 2016.

Under the plans, both councils would share Wandsworth’s chief executive, Paul Martin, and Richmond’s director of finance and corporate services, Mark Maidment, will be appointed deputy chief executive and director of resources.

Richmond had originally planned to merge services with Kingston Council under the Thames Agreement, but talks were suspended in December.

But Councillor Stephen Knight, leader of Richmond’s Liberal Democrats, said the Wandsworth and Richmond merger announcement raises “fundamental issues of democracy and accountability”.

Coun Knight said: “This merger will clearly limit the future independence of both councils to respond to the democratic will of their own electorates and should not proceed without the agreement of the residents of both boroughs in a referendum.

“All those who believe in genuine local democracy should be worried about this extreme and irreversible move being pushed through by politicians without the agreement of the electorate.

“Unlike previous talk of merger between Richmond and Kingston councils, there appears to be little synergy between Richmond and Wandsworth.

“The two councils are very different organisations, one much larger serving an inner London borough, the other smaller serving an outer London suburb with different pressures and issues.”

Earlier this week, it was revealed Kingston had held talks with the Department for Communities and Local Government for the past six months about becoming the first local authority to break free of government funding restrictions.

Speaking of yesterday’s shock announcement, Councillor Kevin Davis, leader of Kingston Council, said: “We wish them [Richmond] well in negotiating and shall watch with interest.

"This does not change anything for Kingston as we will continue to work with Richmond on various projects and continue to seek further opportunities to collaborate with them in the future."

The shared staffing arrangement between Richmond and Wandsworth is expected to save £10m each year for each borough, but both councils will continue to operate as sovereign bodies with its own elected councillors, cabinets and leaders.

The proposals will be discussed at meetings of both councils in the coming months.

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