The Balance of Power: Central and Local Government - Communities and Local Government Committee Contents


Examination of Witnesses (Questions 228-239)

MR MIKE MORE, COUNCILLOR COLIN BARROW CBE, MS MOIRA GIBB CBE AND COUNCILLOR KEITH MOFFITT

10 NOVEMBER 2008

  Q228 Chair: I am not sure whether you have been here through both of the previous sessions? Excellent, great. So I do not need to repeat the bit about only one of you speaking unless absolutely necessary on each question. Can I start off then with the issue of the use of existing powers, to ask each of you whether you think that you currently have sufficient powers to enable you to fulfil your place-shaping roles, and what you would do differently if you had a power of general competence. I do not mind which one goes first.

  Councillor Barrow: I will take it first, if you like. I think this is, if I may say so, not the biggest issue. The issue is about being hamstrung. But we have the powers to do really quite a lot if we want to. The issue is that we do not have the entire freedom to spend our money the way we might want to. That is not the issue, because the power of general economic well-being actually allows for much of what we might want to do. The trick is to build in other partners into that enterprise, people who spend vast amounts of public money in our boroughs, to stitch those people into a process is the much bigger issue than having or not having the power of general competence.

  Councillor Moffitt: I think in the case of Camden, our frustration again is not so much about the powers that we have, but the fact that we have been given the top possible score by the Audit Commission, and yet we do not seem to be trusted to run our affairs. We are subject to an intense regime of inspection and regulation that just does not seem to match with that top score from the Audit Commission.

  Q229  Sir Paul Beresford: What does it cost you? All of this auditing and CPAs and checking and rechecking and revalidating by the government; have you any idea what it costs?

  Ms Gibb: We have not done the sums, but it is very clear, and in a way it is difficult because actually it is a lot of time and preparation that is invisible, and actually gathering it together, but just since the Audit Commission came to us last December and reported in May on our score, our top performing children's services has eight different sets of inspectors coming in to do different things. We all have a limited amount of attention, and I think our concern is not so much about powers, but actually trying to ensure that public sector spending is used as well as possible. My analogy that I think is relevant is combined heat and power, that so much of the electricity is lost in the transfer—60%, I am told, and I think that central government trying to direct things locally just loses a huge amount of the power, as it were. We are much better placed to actually know what would work in a particular setting. I think our sense is that they do not ask us often enough, they set out to do things from the centre without taking into account what our experience and knowledge of the locality is. It's a kind of waste of resources.

  Sir Paul Beresford: What is your council tax gearing?

  Q230  Chair: Could we try and stick to the first point, before trying to get on to a different one?

  Councillor Barrow: Could I answer Sir Paul's question from Westminster? He asked how much does all this cost. We think we have about 45 people doing the government's bidding in the sense of measuring what the government has asked, not just delivering what the government has asked us to deliver, but measuring whether we have done it or not. That costs about £2 million a year.

  Q231  Chair: Would you not have to measure it anyway, for your own management?

  Councillor Barrow: We would have to measure some of it for our own purposes, but you could imagine that some of it is unimportant to us, it is important only to the government.

  Q232  Chair: Can you give an example of that which is unimportant to you and important to the government?

  Councillor Barrow: The amount of tactile paving that is on the edges of our roads.

  Q233  Chair: That is presumably quite important to people with visual handicaps.

  Councillor Barrow: It is, but it might not be important to us, we might elect for it not to be important to us. That is the point I am making. The government does not get to choose what is important for us. It can choose what is important to it.

  Q234  Sir Paul Beresford: So what is your gearing? In other words, for every pound you spend doing this stuff for government that you do not want, what does it cost the council taxpayer?

  Councillor Barrow: It is about four to one.

  Q235  Chair: Just to go back to what you were saying at the beginning, Councillor Barrow, about partnerships, this is a different point, so what is it that prevents you from working in your partnerships as effectively as you would want to at the moment?

  Councillor Barrow: Let me take worklessness. We have some wards in Westminster where 45% of the people do not work, where people have not worked for three generations. Worklessness is a huge problem, it is a cross public sector problem in the sense that worklessness affects life chances, affects life expectancy—life expectancy is different in one part of our borough from another—and it is correlated with poverty and worklessness. It affects civil order, it affects policing, as we all know, many of you have been local councillors, you know exactly how all this works. The only money that we have been able to persuade our partners to put into the public service pot to address the issue of worklessness is the performance reward grant attached to the local area agreement. It is not possible to attach a bit of the DWP's (Department for Work and Pensions) grant which is approximately three quarters, so the DWP's funding for work in Westminster, in benefits alone, is about three quarters of the council tax entire spending; all of our spending on education, all of our spending on social services is approximately equivalent to the spending on benefits by the Benefits Agency. Now it has to make sense to be able to demand, with our democratic accountability, that a part of that is dedicated towards the relief of worklessness in the area, because we can help to provide that economic development, local knowledge, local understanding, all those things, which are very difficult to persuade.

  Q236  Chair: Are you asking more than was put forward by some of our previous witnesses, where they were suggesting that if by getting people into work, they reduced the total benefit expenditure in their area, that they, the council, should be able to keep that extra money; are you suggesting something extra to that?

  Councillor Barrow: I would not particularly want to keep the extra money, but what I would want to do is to enforce a regime of invest to save on all of the public agencies who are working for the same end, it is that. So I would like to be able to get a bit of that money which they will save and say, "Let us have a go at saving it together", mutatis with the other things.

  Q237  Chair: I am not sure whether Camden actually is using all the powers that it could do, is it?

  Councillor Moffitt: We think we are very ambitious in using the power of well-being, for example, in social cohesion, which is a massive issue for Camden. It is a very socially and ethnically diverse borough, we have really pushed the envelope on social cohesion. I am a great believer in measuring what is going on in your borough before you try and act on it, and we have carried out a series of social capital surveys, and we actually use that as the basis for our actions on social cohesion. We feel those have been enormously effective. So when we had two of the bombs in Camden on 7/7, we were very well placed, because of all the work we had done on social cohesion, to react to that.

  Q238  Chair: Apart from the necessity to report to central government, are there any other things that prevent you at the moment from doing things that you want to do?

  Ms Gibb: Probably resources, but I think that our concerns are more about the relationship between central and local government, rather than individual powers, because again, usually resources are required to go with delivering those. I think we would welcome the sense of the local council, the democratically elected body convening, I think Lyons' view on that seems to me to make sense, to have the opportunity to convene local services in the way that others have referred to, in the interests of the local community. I think everything that is required to do to fit one size really makes us less effective and therefore ultimately Government and public services less effective.

  Councillor Moffitt: If I could add something on housing, that Colin just mentioned, it is a source of great regret in Camden that we have lost £283 million because we did not go down the ALMO (Arm's Length Management Organisation) route on decent housing. Again, it fell to us, as a top performing borough, to be told we were going to be dictated to as to how we could run our own housing, it just did not seem right, and the people of Camden are very aggrieved about that. Not just us as councillors, but the people of Camden are upset about it too.

  Q239  Anne Main: Do you actually feel that you should have more powers given back to you, because then you can have greater decision-making, instead of actually being dictated to, in the way you just said? For example, you gave the ALMO as a perfectly good example. Do you think there should be more and more powers given back to you, and in which case, which particular ones?

  Councillor Barrow: Some freedoms and flexibilities on housing would be helpful. For example, we have quite a difficult situation for housing, because not only do we have, as in common with all other Central London boroughs (very expensive property, not quite as expensive as it was, but expensive nevertheless, quite expensive property), and it is a huge economic magnet for people coming into it, but the bureaucracy that you have to go through to build and deliver social housing on the ground is phenomenally complex. I can add, I may be one of the few people who does understand local government finance, but I have to say, housing finance completely leaves me in the dark. It is unbelievably complex, and wherever you go, there is a Pooh Trap about charity status, about tax, about public sector borrowing requirement, about some agency or another that is interfering with the whole process. It really does need clearing out, and happily, not solely in today's trailer, but it needs some attention paid to it, because it is not effective, it is not easy to do what we might want to do.

  Chair: There is a review going on, of course.



 
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