Support is gathering for a demerger of Guyra from the Armidale Regional Council in NSW.

A binding resolution was passed at the annual conference of Local Government NSW this week, which sought to give “solidarity with the people of Tumbarumba and Gundagai as they seek to demerge from their forcibly amalgamated councils, and similarly supports any other communities that seek to demerge from a forcibly amalgamated council”.

The resolution also included plans to “lobby for a change to the Local Government Act to prevent the forced amalgamation of councils or significant boundary alteration without the support of a plebiscite”.

The Save Our Councils Coalition (SOCC) – formed in 2015 to oppose the forced merger of local councils – welcomed the move and warned that demergers will be a major issue in the state elections next March.

The state’s Labor opposition and several minor parties have pledged to reverse the mergers.

There are still some critics who believe that Guyra is simply too small to stand by itself, and would face huge financial costs if it tried to.

Armidale Regional Council mayor Simon Murray and Guyra Shire's former mayor Hans Hietbrink both argue that a demalgamated Guyra Shire would be unsustainable, as a new Guyra Shire could be looking at a 40 to 50 per cent rate rise.