The UK Experience by Malcolm Morley*
It’s arrived. Finally, after all of the speculation, the Local Government White Paper has been published. Titled, Strong and Prosperous Communities, the White Paper runs to a mere 170 pages in volume one, 59 pages in volume two and 28 pages in the accompanying document inviting Councils to bid for unitary status or to become pathfinders for enhanced working in two tier areas. Enough to keep any insomniac Chief Executive happy!
The aim of the White Paper is to give people and local communities more influence and power to improve their lives. Disappointment, however, has been expressed by many in Councils that were looking for evidence of significant devolution to Local Government.
The White Paper covers:
- responsive services and empowered communities
- effective, accountable and responsive Local Government
- strong cities, strategic regions
- Local Government as strategic leaders and place shapers
- a new performance framework
- efficiency – transforming local services
- community cohesion.
Volume two seeks to illustrate how the above will apply to major local public service areas and to cross cutting issues.
The accompanying volume on bidding for unitary status and pathfinder status provides the framework for those Councils wishing to be considered for such status. Interestingly, the Secretary of State has indicated that she does not expect many to succeed in the quest to become unitary Councils. Unitary Councils, that is a single Council for an area, can provide benefits in relation to removing confusion in the public’s minds about responsibility for services and efficiency. The White Paper, however, is unlikely to see the current system of County and District Councils being widely changed. This means that the pressure for cooperation between different types of Council will increase. The track record of this being achieved is not good.
Many Councils not interested in making a bid for unitary status need to understand an important message contained within the White Paper. The message is:
“The Government expects all Councils in continuing two tier areas, even if they are not pathfinders, to pursue new arrangements to achieve the same level of improvement and efficiency gains as the new Unitaries and pathfinders will be achieving.”
This is significant because it is increasingly likely that assumptions will be made by the Treasury about efficiency/unit costs when determining the Revenue Support Grant for Councils. Similarly, the assessment of Council performance by the Audit Commission as part of the ‘Use of Resources’ assessment will increasingly score Council efficiency and value for money based upon best in sector performance. All Councils will need to illustrate that they are pursuing effective unit cost reduction while improving outputs and outcomes. The bar will be continuously raised through the mechanism of comparison within the sector.
Increasingly cooperation in service provision will have to become the norm both within the sector and between sectors.
The White Paper provides a key challenge/opportunity for Councils. This challenge/opportunity is in the form of Councils being able to illustrate that they are able to deliver a rebalanced relationship between their roles of community leader, service commissioner and service provider. Large scale structural reorganisation has been ruled out. Councils cannot, however, relax. Relationships need to be reinvigorated to improve community leadership, service commissioning capacity needs to be developed and partnerships need to be forged to enable improved value for money to be delivered.
Legislation will follow in the New Year and it will be interesting to see how the Government will seek to ensure Local Government’s challenge/opportunity will be converted into action.
*Malcolm Morley is Chief Executive of Harlow District Council and can be contacted via the Editor, email info@lgfocus.com.au The views expressed in this article are not necessarily those of his employer.
