Meeting documents

Cabinet
Tuesday, 16 May 2006

CA160506-10

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ITEM CA10

CABINET – 16 MAY 2006

LOCAL GOVERNMENT WHITE PAPER

Report by the Leader of the Council

 

Introduction

  1. The Government is committed to producing a Local Government White Paper in June this year, which will feed into the Lyons Inquiry into the future role and funding of local government (report expected December 2006), with proposals from both of these being implemented in next year’s comprehensive spending review.

  2. David Miliband, when Minister for Local Government and Communities, indicated that he had set five principles against which proposals were being developed:

    • Double devolution – government to councils and councils to neighbourhoods

    • Services to orbit around the individual, not vice versa

    • Improved strategic leadership and capability for councils

    • Bottom-up accountability

    • Local government finance – "the toughest to sort out"

  1. Mr Miliband stimulated considerable debate within local government about these issues through a combination of speeches to different audiences, articles in the trade press, consultation meetings across the country and briefings by officials to chief executives. From the meeting I attended at the end of March with other South East leaders it is clear that there are very mixed views among councils, although some leaders were clear in their support for change.

  2. Oxford City Council have made a firm public commitment to bid for unitary council status and at the beginning of this month issued a paper setting out their preliminary case for unitary status, stating that they saw the advantages of abolishing the County Council and replacing it with three unitary councils for the County.

  3. The landscape has already changed in that the Cabinet reshuffle on 5 May gave Mr Miliband different responsibilities and the future of local government is now a matter for Ruth Kelly and her new Department for Communities and Local Government. Sir Michael Lyons has also submitted his first report to the government in which he argues for increased independence for local authorities to respond to the needs of their own communities.

    4. Likely content of the White Paper

  4. While much of the debate so far has rested on the possibility of local government reorganisation, this is only one of the issues proposed to be included. Officials have indicated that six areas will be covered in the White Paper:

    5. A new performance management system between central and local government

  5. This will replace the existing Comprehensive Performance Assessment and indications are that government is planning to have fewer national targets and a more risk based system, with more emphasis on self-assessment, with intervention only where there are failing services. Linked to this is a proposal for "horizontal accountability" at local level, where local authorities will hold other agencies to account, perhaps through an enhanced scrutiny role.

    6. Proposals to promote better economic growth for cities

  6. This is primarily aimed at the proposed "City Regions" (e.g. West Midlands, Tyne and Wear etc) where local authorities are being encouraged to work together in new ways to promote economic growth.

  7. The former Minister had indicated separately that he was interested in promoting a dialogue with the smaller cities and towns (including Oxford City) that sit outside of the eight "core" cities and earlier in the year wrote to leaders proposing a series of summits where councils would set out their visions for their areas, with particular reference to measures which could promote economic growth. After this a series of options (as yet unspecified) would be made available to these areas, in negotiation with Government Offices.

    8. Proposals to improve local leadership

  8. This could cover changes to the electoral system to bring all councils into line in relation to the frequency of local elections, and measures to promote direct elections, both of mayors and cabinets.

    9. Local government as the convenor of local public services

  9. This follows the thinking in the recent consultation paper on local strategic partnerships, where local authorities are proposed to be the leaders and drivers of those partnerships, supported by a potential duty on other public agencies to co-operate. This is likely to be linked to an increased emphasis on local area agreements.

    10. Community and neighbourhood empowerment

  10. Proposals to increase community engagement at a local level, although not the wholesale devolution of services to parish councils that had been mooted.

    11. Local government structures

  11. The key issue raised is whether local government structures can be changed to deliver better outcomes for local people. The former Minister raised questions as to whether new forms of structure could lead to better local leadership, better value for money and more local engagement.

    12. Possible Local Government Review

  12. While there has been no government commitment to reviewing two tier working in Shire England it is clear that considerable thinking has already taken place about the likely criteria and timetable if this does proceed. Thus far the process has been described as "an invitation" to put forward proposals for change in an area and, while the opportunity to opt in implies that areas could opt out, officials have been clear that a consensus between local councils is not necessarily expected and that any proposals for change will be considered.

    13. Timetable

  13. It is anticipated that the White Paper will be published early in June and that, if the Secretary of State concludes that local government restructuring should take place, then councils will be invited to come forward with proposals for their areas by the end of September/early October. There will be no compulsion. However, all bids will be considered.

  14. Primary legislation will be needed for any changes. Final proposals would be submitted in December 2006/January 2007, with Royal Assent October 2007, shadow elections May 2008, with new arrangements in place for April 2009.

  15. Each proposal would be judged against criteria set out in the invitation.

    16. Likely criteria

  16. The fundamental test for local governance which Mr Miliband had indicated would be applied would be based on:

    • Empowering people as individuals and as communities of place and interest. Allowing people the opportunity to help shape decisions about services and localities

    • Providing strong, visible, acceptable leadership for the area

    • Ensuring that services are delivered in effective, efficient, integrated and value for money ways (whoever is responsible for the provision)

  1. The debate has been promoted because of widespread feelings of weakness within government in the existing two-tier structure.

  2. Indications have been given that larger unitaries will be favoured, with population ranges of 250,000/300,000 to 1.25m and that proposals should be confined to existing boundaries, although mergers will be considered. It is not currently proposed that the Boundary Commission will be involved.

    3. Consultation

  3. Mr Miliband has fostered a widespread debate, as part of which a series of regional roadshows have been taking place. South East Leaders were invited to a meeting on 29 March. "County dialogues" are also being held in five areas; Shropshire, Gloucestershire, East Sussex (already taken place); Lincolnshire and Lancashire (yet to happen). These "dialogues" are by invitation only and have thus far consisted of a series of meetings with different stakeholder groups in the County.

    4. The local position - Oxford City Council

  4. As indicated above, Oxford City Council have declared their plan to seek unitary council status and have commissioned some research by INLOGOV at Birmingham University, alongside three other similar historic cities (Exeter, Norwich and Ipswich) to support their submission. The city’s preliminary case is likely to stimulate widespread local debate and I am concerned that this could have a destabilising effect on staff within the County Council.

  5. It is a matter for regret that the City Council have acted in this pre-emptive way but, since they have done so, I believe it is necessary for the County Council – both in the interests of staff and of public understanding – to be seen to be preparing for all eventualities in response to this situation and not simply wait until the White Paper and whatever choices that may offer to local government.

    6. RECOMMENDATION

  6. I therefore RECOMMEND to the Cabinet that the Chief Executive be instructed to work up options that consider the benefits of both enhanced two-tier working with district councils and a unitary council for the whole of the county.

KEITH R MITCHELL
Leader of the Council

Background Papers: Nil

May 2006

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