Select Committee on Communities and Local Government Committee Third Report


4  Delivery

Departmental reorganisation

19. The Department for Communities and Local Government was created in May 2006. The new Department assumed most of the major responsibilities of the former ODPM, including housing, planning, local government, regional policy, and sustainable communities and neighbourhood renewal. The Department was also given policy responsibility for the Government's equalities policies and oversight of the Commission for Equality and Human Rights.

20. The Annual Report 2006 covers the financial year ending in April 2006, and does not therefore extend to May 2006 when the changeover from the ODPM to the DCLG occurred. The lateness of the Report's publication, however, allowed the inclusion of a list of the new ministerial responsibilities that resulted from the changes. The newly appointed Secretary of State for Communities and Local Government took over many of the responsibilities previously held by the Deputy Prime Minister, but also became Minister for Women. A Parliamentary Under-Secretary with responsibility for women was also added to the team. The Department has undergone significant reorganisation as a result of that machinery of government change, which will have an impact on its operations in 2006-07. At board level, the Department has also undergone some restructuring, including a reorganisation of its directorates-general and the appointment of several new senior staff, including most recently new Directors-General for Governance and Communication and for Equalities. The Department has also created a Strategy and Performance Unit comprising 29 full-time equivalent staff, including a Director, to "join up policy and delivery across the Department and sharpen the impact of Ministerial and Board engagement in the Department's business".[20] The DCLG has undergone a substantial transformation programme since publication of the Annual Report. We shall, in the course of our programme of inquiries into departmental policies, watch with interest the impact that this has on the Department's roles, responsibilities and achievements. We expect next year's Annual Report to include at least a preliminary analysis of the impact these changes have had on the Department's ability to deliver.

Relationships with other Departments

21. A year ago, we identified the need to achieve sustainable communities objectives through the agency of other Government Departments as a significant challenge for what was then the ODPM. We reported our scepticism about the Department's ability to secure the co-ordinated action needed to meet those goals.[21] The ODPM responded merely by noting that other Departments were fully involved in the delivery of sustainable communities.[22]

22. There is no question that other Departments should be fully involved in delivery of a range of DCLG policies. The Department's first PSA target, for example, is to "Tackle social exclusion and deliver neighbourhood renewal". The target itself specifies that the Department must help other Departments meet targets narrowing the gap in "health, education, crime, worklessness, housing and liveability outcomes", with the obvious implication that work needs to be done in concert with, at least, the Department of Health, the Department for Education and Skills (DfES), the Home Office and the Department for Work and Pensions (DWP). PSA 2 (regional economic performance) is shared with the DTI and the Treasury. PSA 8 (safer, greener public spaces and improvement of the built environment) is shared with no fewer than eight other Departments.[23]

23. In some areas, the DCLG responsibilities identified in paragraph 19 also cut across the work of other Departments. In housing, planning and local government, for example, the Department needs to interact with the Department for Culture, Media and Sport, the Department for the Environment, Food and Rural Affairs (DEFRA), the DTI and the Department for Transport. The Annual Report notes that the new responsibilities for voluntary and community engagement, race inequalities and community cohesion were inherited from the Home Office and those for gender equality, ethnic diversity and co-operative employment relations came from the DTI, requiring, at least in the short term, co-ordination with those Departments.[24]

24. In short, the DCLG's expanded role requires considerably greater co-ordination and communication with other Departments than that which we had identified as a challenge for the ODPM. This again raises the question of how effectively the DCLG is able to set and achieve goals that rely heavily on the performance of other Departments. The Secretary of State recognised that close co-operation with other Government Departments is required: "Where appropriate we come together to create a common policy".[25]

25. Differing approaches between Departments can make it difficult to see how well the DCLG is doing when its performance on shared targets is measured against data compiled elsewhere and primarily for different purposes. For example, the Department's performance against its PSA 1 target on Neighbourhood Renewal relies, as noted above, on "the delivery of floor targets by Government Departments who own them, in the 6 key outcome areas".[26] Data were not, however, available in time for the Annual Report's publication from the Department for Work and Pensions or the Department for Education and Skills, leaving the DCLG to conclude that progress towards its PSA target was "on course" on the basis of the best available information, and on the basis of unofficial data not strong enough to be included in the report.[27] In this case, the data later confirmed that progress was in fact on course, and that the DCLG had in fact been properly cautious in its estimate of progress. However, the "on course" estimate published in the Annual Report, although it proved to be broadly correct, was at the time merely an estimate, and in this case one that understated true performance. We criticised the Department last year for an "unjustifiably favourable presentation of its achievements".[28] It may seem harsh, then, to accuse it this year of presentation that is unjustifiably unfavourable. Quite simply, however, the absence of accurate, up-to-date data will result in its reporting its progress wrongly—in either direction—and it is clear that there are difficulties in obtaining such data from other Departments. The Director-General, Places and Communities, Mr Montgomery, told us that the Department had worked hard to match floor targets with other Departments, but added that "each Department might pick particular areas to focus on that reflect its own most difficult challenges […] there should be symmetry but each Department might have a slightly different list of focus areas that it chooses to target more resource to".[29] He also said that arrangements were in place for joint departmental working:

"We do very good joint work with all of our partner Departments to try and generate extra focus and extra traction in areas that are struggling [...] We have communicated our priorities quite clearly to other government Departments. They tend to do problem-solving work jointly with us rather than separate from us, and we pick those areas that are on each Department's list of areas that need extra technical assistance or extra resource to give them an additional push".[30]

26. The DCLG's role as lead Department in several areas of Government policy requires it to set clear strategic goals of its own and to arrange suitable mechanisms to persuade other Departments and non-departmental public bodies across Government of the vision behind those goals and the actions required of them if shared targets are to be reached. Clear arrangements are also required to facilitate the most accurate possible measurement of shared goals, particularly when measurement relies on data collected by other Departments with subtly different policy targets. We would like to see the nature of these agreements and details of the co-operative work undertaken spelled out in future Annual Reports.




20   Ev 107; Ev 31 Back

21   HC (2005-06) 559, para 34 Back

22   HC (2005-06) 1072, p 7 Back

23   DCLG Annual Report 2006, Annex A Back

24   DCLG Annual Report 2006, p 9 Back

25   Q198 Back

26   DCLG Annual Report 2006, p 50 Back

27   Ev 112 Back

28   HC (2005-06) 559, para 14

 Back

29   Q85 Back

30   Q87 Back


 
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