Select Committee on Lord Chancellor's Department Appendices to the Minutes of Evidence


APPENDIX 4

Memorandum submitted by the Central Council of Magistrates' Courts Committees

COURTS BILL AND MAGISTRATES' COURTS COMMITTEES' GRANT ALLOCATION

  Central Council was disappointed not to be able to appear before the Committee on the Lord Chancellor's Department (LCD) Courts Bill evidence sessions, but completely understand why this was not possible. We welcome the opportunity to offer the Committee briefing material and hope that it has been of use.

  However, as Central Council is not to appear at the evidence sessions, there is one issue which we feel we must register with the Committee, that being the grant allocation to Magistrates' Courts Committees (MCCs) for 2003-04.

  Grant this year was allocated to MCCs via a new grant Allocation Formula. The LCD has been developing an equitable formula for more than six years. MCCs have themselves devoted considerable staff resource time to assisting the LCD to do so. One of the objectives of the formula was to promote transparency in understanding. This was not achieved. In preparing an explanation of the formula, at MCCs' request, the LCD discovered errors: all MCCs had received the wrong allocation, some to a considerable degree (I attach at Annex A, a table detailing what MCCs were allocated and the corrected amounts of what they should have received).

  The Department has acknowledged this mistake but is apparently not going to do anything about it. Nine of the "outlier" MCCs. At either end of the incorrect allocation spectrum, have been contacted and, Central Council understands they are to submit new business cases to the Department, presumably to assess whether they should keep an excessive allocation, or to decide whether to top-up a grossly under-funded MCC. Central Council regards this as a very sloppy way of managing public money.

  This state of affairs is directly linked to the Courts Bill. The Government is critical of the fluctuations in MCCs' performance, and this is cited as a main driver of the proposals in the Courts Bill fro the Government to take greater control through an executive agency model. But funding has always been critical to this issue. How can MCCs perform consistently when the allocation of their annual grant is so inconsistent? How also can we all be confident that greater central control will result in better performance? The development of the Grant Allocation Formula has been an entirely centralised project, run by LCD. The Department has spent vast sums using consultant (C International); so much, in fact, that they will not disclose the total, despite requests. Yet Central Council understands that the advice of these consultants was dismissed when they indicated that they believe the data collected in the business process mapping exercise was insufficiently robust to support an effective formula.

  For years, many MCCs have been alerting all who would listen, that they would have to begin to cut core services unless the grant allocation was fairer. For the first time, the Government had indicated that this had been delivered. However, far form being given the certainty and resources required to go about improving performance, MCCs have again been thrown into limbo. This is despite many of them registering concerns to the LCD in early January.

  This disaster is likely to result in a further waste of public money. Central Council's concern is, that far from improving matters, the proposals for greater central control (through an executive agency) proposed in the Courts Bill will actually cause yet further waste. As seen by this experience, local managers (MCCs and Justices' Chief Executives), although not perfect, have a better appreciation than those based in Whitehall, of what resources it takes to deliver the improved services we all want. Central Council fears that the answer of Government to ensure the success of the new agency will be to throw more money at it. Would it not be simpler to instead give proper resources to those who know what they need now and have been crying out for such for years?

Duncan Webster

Chief Executive

Central Council of Magistrates' Courts Committees

March 2003

Annex A

CHANGES IN 2003-04 GENERAL GRANT AFTER CORRECTION AT STEP (D)
MCCPosition 1—
December
(%) increase
over 02-03
general grant
Position 2—
corrected
(%) increase
over 02-03
general grant
Avon & Somerset
Bedfordshire
Cambridgeshire
Cheshire
Cleveland
Cumbria
Derbyshire
Devon & Cornwall
Dorset
Durham
Dyfed Powys
Essex
GLMCA
Gloucestershire
Greater Manchester
Gwent
Hampshire & IOW
Hertfordshire
Humberside
Kent
Lancashire
Leicestershire
Lincolnshire
Merseyside
Norfolk
North Wales
North Yorkshire
Northamptonshire
Northumbria
Nottinghamshire
South Wales
South Yorkshire
Staffordshire
Suffolk
Surrey
Sussex
Thames Valley
Warwickshire
West Mercia
West Midlands
West Yorkshire
Wiltshire
9,026,834
3,480,344
4,363,958
5,724,515
5,099,969
3,918,918
4,991,926
8,839,728
4,146,522
4,552,874
3,482,111
8,584,068
77,741,066
3,664,152
22,084,694
4,387,024
10,495,925
6,039,199
6,422,084
8,824,187
9,440,344
5,765,776
4,239,830
11,455,116
5,052,690
4,870,441
4,519,084
4,304,134
11,598,820
8,999,655
11,136,421
9,428,841
6,830,704
3,956,771
5,379,372
8,867,038
12,650,031
2,768,616
7,388,639
20,291,585
15,602,405
4,583,587
8.9
4.4
15.0
8.5
15.0
4.1
3.5
9.4
3.5
11.8
6.2
5.1
3.5
3.5
8.2
11.5
8.5
7.4
15.0
13.2
10.6
5.7
12.6
5.6
3.5
11.5
15.0
13.7
15.0
3.5
15.0
6.6
11.5
11.5
3.5
6.4
14.5
6.0
3.5
7.3
3.9
10.5
9,144,004
3,644,986
4,004,869
5,862,493
5,099,969
3,898,492
5,297,172
9,024,002
4,146,522
4,754,152
3,393,871
8,944,842
77,741,066
3,849,330
22,252,903
4,353,384
10,079,523
5,936,998
6,422,084
8,626,783
9,223,689
5,955,276
3,993,419
11,799,969
5,052,690
4,785,389
4,519,084
4,278,001
11,426,283
8,999,655
10,942,006
10,004,148
6,640,530
3,956,923
5,451,163
8,626,645
11,881,409
2,775,571
7,388,639
20,891,510
15,546,286
4,384,270
10.3
9.4
5.5
11.1
15.0
3.5
9.9
11.6
3.5
11.6
3.5
9.6
3.5
8.8
9.0
10.6
4.2
5.6
15.0
10.7
8.0
8.2
6.0
8.8
3.5
9.5
15.0
13.0
13.3
3.5
13.0
13.1
8.4
11.5
4.9
3.5
7.6
6.3
3.5
10.5
3.5
5.7
TOTAL385,000,000
385,000,000


  Notes:   Please note that the 02-03 general grant used to measure the percentage increase in grant for 03-04 was amended at position 2 for Durham and Leicestershire


 
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