Select Committee on Communities and Local Government Committee Written Evidence


Memorandum by Essex County Council (RG 92)

EXECUTIVE SUMMARY

  1.  Essex County Council believes regional government is deeply flawed. It is unaccountable and lacks resonance with the general public. The region is too large a structure to be an effective form of governance; it ignores or downplays the very real differences that exist among its constituent parts.

  2.  In spite of the November 2004 North East vote, it appears central government is set on a regional programme, with police and health restructuring indicating the future direction of policy. The current focus on size and uniformity rather than ability to do the job is likely to damage service delivery and citizen satisfaction.

  3.  Almost half of England's population live in county areas. The model of the core county or county region should be factored into the current debate around core cities and city regions.

IS THERE A FUTURE FOR REGIONAL GOVERNMENT?

  4.  The answer, in short, must be "no".

  5.  The nine English regions are artificial constructs that see Liverpool and the Lake District brought together in a North-West region, Swindon and the Scilly Isles sitting at opposite ends of the South-West region and Thurrock joining Fenland in the Eastern Region. Too large and too diverse, they lack both social and economic cohesion.

  6.  This is reflected in the fact that in 2000, only 7% of polled Essex citizens identified "their" region correctly. Three years later, the percentage had not changed. Nearly a quarter (24%) believed Essex was part of the "South East".[1] There is little reason to believe the situation has altered a great deal in the last three years.

  7.  The North East referendum result of November 2004 showed that, even in an English region with a common shared identity, there was little support for regional governance. Academic analysis suggests that the "No" vote was driven by a concern that regional government would waste money and lead to higher taxes, while having little impact in boosting the region's economy or voice in Europe.[2] The conclusion must be that people fail to identify with their region; they also fail to see what positive elements regional government adds to the mix.[3]

THE LOCAL CONTEXT

  8.  Essex has a population of 1.3 million (1.6 million if the unitary authorities of Southend and Thurrock are included)—some 24% (or 30%) of the regional total. The value of total production within Essex was an estimated £16,528 million in 2002—the county's economy the tenth most valuable in the UK and the second most valuable economy in the East of England.[4] Yet only 20% of the Regional Assembly's current membership represents Essex constituencies. Essex's opinion does not carry the weight the county's demographic and economic position would lead one to expect.

  9.  This is particularly problematic when one considers that many of the issues our county faces—housing, economic development, and transport among them—differ from the challenges faced by our regional colleagues.

  10.  Essex is London-facing. Essex's policy issues have more in common with those of the capital and its satellite counties than Norfolk or Peterborough. Whilst we actively work with other Eastern authorities where a community of interest exists (Haven Gateway, Stansted, 2006-07 finance settlement) there are few instances where close collaboration is possible.

  11.  The same must hold true for a number of other authorities in this and other regions—regional government ignores very real differences. The counties, economies and issues that exist within regions are too diverse to be able to be lumped together.

  12.  Regional government is too remote to adequately address the needs of citizens. It is also unaccountable. At present no-one is directly elected to a seat in regional government—but even if we hypothesise that an elected Eastern region assembly were introduced, the draft Regional Assembly Bill suggests each assembly member would have c 200,000 constituents. In comparison, the average Essex-based Westminster MP represents 94,000 citizens, and the average county councillor represents just over 17,000. A strong link between elected representatives and voters is critical if we are to ensure the public sector delivers excellent, and accountable, services.

  13.  Our recent experience of negotiating a Local Area Agreement has highlighted the wide divergence between what local people value and what regional government considers important. Among local partners, regional development agencies and assemblies are too often felt to be a brake on effective working and progress.

DEVOLUTION OF POWERS

  14.  We have argued for a number of years that central government should promote greater autonomy for strong performing local authorities, not the devolution of power to regions.

  15.  As a county council, Essex believes strongly in devolving decision-making powers. We are committed to letting local people decide on issues that affect them and we would welcome greater devolution of powers from both the centre and the region to the sub-regional level. There are no obvious operational barriers to devolving those powers that currently reside at the regional level to county councils.

  16.  The Audit Commission's latest CPA results show that 41% of county councils are 4-star authorities—including Essex. In comparison, only 25% of metropolitan borough councils, 21% of London boroughs, and 19% of unitaries have been awarded the four-star designation. County councils are effective, accountable, and grounded in a geography that resonates with local people.

  17.  Regional assemblies, development agencies and other quasi-autonomous non-governmental organisations operate in an increasingly crowded public sector. Local authorities, though, have a unique selling point—democratic legitimacy. We should see it as a source of pride that local electors have the opportunity to vote out their local councillor, and as a cause of concern the citizen has no source of redress if unhappy with the policy emanating from the region or those bodies that deliver the region's agenda.

  18.  Regional advocacy of social and economic development and environmental protection is similar to the role of local authorities as set out in the Local Government Act 2000. Local government is increasingly a commissioner of services. Regional government seeks to operate in the same sphere. The question arises as to what extent the duplication of roles is desirable.

  19.  EEDA often appears to act as an unnecessary filter between central and local government. It is inherently inefficient for local authorities and other local providers to bid for public funds as every bid submission has an opportunity cost attached.

  20.  Paradoxically, large regions lack economies of scale. They are top-heavy—EEDA forecasts that it will spend 8% of its budget on administrative running costs in 2005-06. While accounting protocols differ between regional and local government, based on CIPFA's Finance and General statistics, Essex County Council in 2004-05 spent around 1.6% of its total budget on non-direct service related functions (classified "as central services")—with the typical county council spending 1.9% on these central services.[5]

  21.  There is, of course, a need for some administration to ensure funds are directed to where they will have greatest effect. Yet this could happen at the local level. Local Area Agreements have shown local authorities are able to act as local commissioners and/or deliverers as appropriate. We have an obligation to ensure public money is spent wisely and it is not clear to what extent the regional assembly or the RDA adds value to the process.

  22.  The public sector should be judged on its deeds, not its words. It is local government, that educates the young, that keeps the environment clean, that provides adult social care services to the elderly. These are important tasks that need to be responsive to local need.

SIZE SHOULDN'T MATTER

Police and health restructuring

  23.  Counties have been the basis of England's police outside London for as long as there has been an organised police force. There is no logical reason for regional or sub-regional police forces. Nor is the Home Office's assumption that 4,000 officers is the minimum level at which a police force can function effectively at all obvious.

  24.  West Mercia is the country's best performing police authority. It has 2,500 officers and is destined for a four-way merger with the West Midlands, Staffordshire and Warwickshire constabularies. Yet West Mercia is proof that quality of policing matters more than adherence to an arbitrary number of officers. Essex Police has 3,230 officers and, in the opinion of both the Essex public and the government's own inspectorate, performs well.[6] In its most recent inspection it had stable or improving performance across the board. Moreover, Essex Police have consistently exceeded government efficiency targets over the last five years and have one of the lowest levels of police expenditure in the country.

  25.  If Essex Police were to merge with other, higher precepting, forces in the region, Essex citizens would have to pay more council tax. Our analysis suggests that if Essex merged with:

    —  Suffolk and Norfolk, the police precept would rise 14%;

    —  Hertfordshire and Bedfordshire, the police precept would rise 5%; and

    —  the whole region, the police precept would rise 15%.

  26.  In return for increased council tax, Essex citizens would receive a less effective, less accountable service.

  27.  As with policing, so with health. Both Ambulance Trusts and Strategic Health Authorities are likely to become regional bodies, although there is no clear reason why either would provide a more effective service if run regionally.

  28.  When examining government plans to alter current Primary Care Trusts, the Commons Health Select Committee suggested it took 18 months after a restructuring for organisations to recover and hit their former service levels—and an additional 18 months for substantive improvements to be seen.[7] Unfortunately, it is the tax-paying general public who receive an inferior service in the meantime. While there may be a case for slightly larger structures here what must be recognised is that what PCTs currently lack in scale, they make up for in responsiveness, local focus, and local accountability.

City regions and core cities

  29.  Since November 2004, much has been made of the concept of core cities or city regions. It is plain that cities exert a pull on their surroundings. It is also true that in for much of England beyond the urban north of the country, the economic geography of growth maps closely onto county boundaries. To take Essex as an example, 71% of residents work in the county, and 85% of people who work in the county are also residents.

  30.  London and Manchester aside, the Essex economy is worth more than that of any major UK city. If an expanded Birmingham can be viewed as an economic entity, then so can Essex.

  31.  Analysis shows that Essex more than holds its own against the eight conurbations labelled core cities by Mr Miliband. Picking three key economic indicators, Essex has:

    —  a greater proportion of its working age population economically active than any core city;

    —  an unemployment rate lower than any core city; and

    —  a lower proportion of public sector employees than any core city.

  32.  There is no need for uniformity. Central government must recognise, and accept, that local circumstance will dictate the structures that evolve. Whilst the core city may be a valid model in metropolitan areas, the concept of the core county is equally valid in areas with a diverse rural/urban mix.

  33.  Regional cities, core cities, or city regions are simply an acknowledgement of the influence an economically successful location can have on its environs. What they are not, and what they must not be allowed to become, is an inappropriate role model, fragmenting current, successful, administrative structures.

  34.  Co-operation among local authorities, businesses and community groups to improve the local environment is part of day-to-day governance. Essex is working with:

    —  London boroughs, unitary councils, businesses and the voluntary sector to ensure the Thames Gateway offers people truly sustainable communities;

    —  Brentwood district council, Thurrock unitary and the London boroughs of Barking and Dagenham, Enfield, Havering, Newham, Waltham Forest, and Redbridge in an informal senior level partnership to discuss issues of mutual shared interest such as transport infrastructure, social worker retention, procurement, and shared resources; and

    —  the full gamut of public sector, community and voluntary sector, and representatives of the private sector as part of our cross-cutting Local Area Agreement.

CONCLUSION

  35.  David Miliband recently wrote that he wanted "strong leadership; a focus on the neighbourhood level; innovative service delivery; and value for money" from local government.[8] We believe local people want the same and that is why Essex has been delivering these for many years.

  36.  Regional government is flawed. It is too remote, lacks accountability and is based on questionable bureaucratic logic not natural communities. It duplicates work done elsewhere by other more effective, more accountable parts of the public sector.





1   MORI, Essex Residents Survey 2003, November 2002-February 2003. Back

2   Rallings & Thrasher, "Why the North East said `No': the 2004 referendum on an elected Regional Assembly", Devolution Briefings Briefing No 19, February 2005, Local Government Chronicle Elections Centre, University of Plymouth. Back

3   See ICM Research, Regional Government Survey, January 2003. Back

4   Headline gross value added (GVA) by NUTS3 area at current basic prices 2002. Office for National Statistics 2005. Crown Copyright. Back

5   Compare EEDA, Progress Report for April-September 2005, available online at www.eeda.org.uk with CIPFA's Finance and General Statistics, available online at www.cipfastats.net Back

6   MORI, Essex Citizens' Panel-Wave 4, January-March 2005 and Her Majesty's Inspector of Constabulary, Baseline Assessment Essex Police, October 2005. Back

7   House of Commons Health Committee, Changes to Primary Care Trusts, Second Report of Session 2005-06, 11 January 2006, pp 4-5. Back

8   Miliband, Local Government Chronicle, 1 December 2005. Back


 
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