Memorandum by Buckinghamshire County Council
(BOP 29)
SUMMARY
1. Buckinghamshire County Council is one
of many County Councils across the south of England struggling
to meet current demand for services within an ever tightening
financial envelope.
2. Buckinghamshire has well developed local
partnerships, within which the Council plays an important part,
not least the Buckinghamshire Strategic Partnership and the Buckinghamshire
Pathfinder area. The Council is not averse to change and rises
to any challenge.
3. However, central government needs to
reconsider the way in which it supports local authorities such
as Buckinghamshire if they are to continue to provide high quality,
responsive services into the future.
4. In particular, if the central-local relationship
is seen as a partnership, there are significant imbalances between
the sides at present which need to be addressed in order for this
partnership to develop further.
5. The first of these is that local government
is subject to far greater levels of financial restraint and scrutiny
in contrast to central government departments. Devolution of responsibility
must be genuinely accompanied by full funding directly to local
government.
6. The second is the need for consistency
of approach to local government across central government departments.
The role of the elected councillor and local authorities at the
heart of local accountability needs to be a principle adopted
by all government departments, not just Communities and Local
Government. Regional bodies must be incorporated within the democratic
structure.
7. Finally, central government should give
local partnerships time to develop and should not be too prescriptive
on their creation. Demands for evidence of early efficiencies
are unrealistic and can have a negative impact on partnership
development.
FURTHER DEVOLUTION
Does local government need greater autonomy from
central government? If so, in what ways?
8. Local government will require greater
autonomy from central government if it is to deliver effective
community empowerment at the local level and if it is to continue
to respond successfully to local needs. Given the tight financial
restraints within which local authorities are operating, additional
responsibility must be accompanied in full by the funding that
central government currently allocates to any such functions.
9. If increased autonomy arises from EU
legislation, the role of central government should be to analyse,
simplify and distil and not add to, such legislation before devolving
to local authorities.
10. The further devolution of powers or
functions should be made directly to local government and not
through regional bodies. We feel strongly that the regional agenda
is circumventing democracy through organisations which have a
non-elected membership. The thread of democracy, from the local
level through to central government, is at risk as a consequence.
The role of the local councillor is a vital link in the democratic
chain and we are concerned that the reduction of the regional
role for councillors will have a negative impact not just on the
ability of local organisations to deliver services but also on
the delivery of democratic renewal. Devolution of powers and functions
must be part of local democracy.
11. In the recent past, there has been an
additional tendency for central government to allocate funding
to local authorities via third party organisations. We understand
that this can be a highly effective mechanism by which to promote
and develop partnership working. However, once such partnerships
are established the additional bureaucratic layers attached to
the administration of funding through third parties results in
a dilution of funds in real terms.
12. Finally, we believe that it is essential
that central government delivers on the new performance management
framework and ensures that the promised lighter touch is applied
across all government departments.
Do local government's role and influence need
to be strengthened in relation to other public services, such
as policing and health?
13. The Government's emphasis on local authorities
as "place-shapers" and community leaders is a natural
extension of the role such organisations have undertaken for many
years. Local government's experience of priority setting, policy
development and inspections puts it in an excellent position to
undertake this responsibility for the local area. Local authorities
understand and recognise the increasing need for organisations
to work well together to meet the needs of local residents. Putting
the local Councillor at the heart of local governance is key to
ensuring strong local democracy.
14. However, successful partnerships take
time to develop and central government must allow such fledgling
associations appropriate timeframes for delivery. This includes
the achievement of savings and funding should only be reduced
over a realistic timescale.
15. The prescriptive approach to partnerships
often adopted by central government restricts the ability of local
services to develop appropriate solutions to meet local need.
For example, as Neighbourhood Action Groups (NAGs) have to be
created for specified population sizes, NAGs are sometimes artificially
created to meet this requirement rather than aligning with local
natural communities.
16. We have an additional concern that the
requirement for local authorities to work closely with partner
organisations is not reflected at the national level. Central
government departments should also be required to achieve a greater
level of co-ordination and collaboration to support work at the
local level. Local government has received assurances in the past
about the central-local relationship which has not been delivered
across all central government departments.
17. As a current example, the proposals
in the policing Green Paper for directly elected crime and disorder
representatives to sit on Crime and Disorder Reduction Partnerships
and police authorities cuts across the role of local authorities.
The Justice Ministry's stance appears to be contrary to that taken
by Communities and Local Government, which promotes a greater
role for local councillors in ensuring the local accountability
of the police as part of the community leadership role of local
authorities.
FINANCIAL AUTONOMY
18. The contrast with central government
is again clear in this area. Local government has a far greater
level of financial sophistication than individual central government
departments. When one partner is subject to a significantly higher
level of financial constraint and scrutiny than the other, the
relationship cannot achieve balance. The contrast between the
financial demands on local authorities and central government
departments needs to be addressed if partnership and trust are
to develop further.
To what extent do the current arrangements for
local government funding act as a barrier to local authorities
fulfilling their "place-shaping" role? In particular:
Does local government need greater financial freedom?
If so, in what ways?
19. The current local government finance
regime places significant financial constraints on local authorities
that focus substantial member and management time and energy away
from service delivery. This focus tends to be on making the most
of the available budget to meet current demands and as a result,
innovation and new ideas tend to be considered in the context
of budget rather than potential improvements in service delivery
or benefits to local people.
20. The requirement to find efficiencies
is understood and local government has a better record than central
government in this regard. However, the level of savings expected
from floor authorities, with no other source of local finance
available, is punitive. Greater financial freedom would enable
authorities to focus more on the "place-shaping" role,
by providing the capacity to future proof services and developing
more innovative and effective solutions to meet projected demand.
Should local government be able to raise a greater
proportion of its expenditure locally?
21. No, the individual should not be taxed
further. Should a greater proportion of local revenue be raised
in this way, there is no guarantee that central government would
not take the opportunity to reduce core funding accordingly. This
would place local councillors in the very difficult position of
having to explain the increase in taxes with no visible benefit
to local people. The lack of local media understanding of local
government finance could exacerbate this situation.
22. Local government finances could be supplemented
by the redirection of Local Business Rates to local people through
the authority. Giving local authorities the power to reinvest
such revenue into the local area could result in tangible benefits
by enhancing economic sustainability.
What effect does the capping of council tax rises
have on local accountability?
23. Capping was brought in to address the
issue of frivolous spending by a minority of local authorities.
However, government grants are now set so low that capping threatens
the provision of frontline services. Local authorities should
either have the power to raise taxes in extreme circumstances
if needed to save services or be assured that central government
will continue to fund services at the present level.
24. The withdrawal of supported borrowing
has resulted in an additional pressure for local authorities,
who now have to balance the need to fund services against the
risk of capping, restrictive grants or prudential borrowing.
EXISTING POWERS
To what extent are local government services a
product of national or local decision-making?
25. Local government services are very much
a product of national decision-making. Local government no longer
has the freedom to provide services in response to local need,
but is in effect an agent of central government. There is very
little capacity within our Council to develop local solutions
to meet demand in Buckinghamshire beyond that specified by central
government.
26. Whilst we understand that national government
has the right to set national standards in some areas of local
government services; these should be kept to a minimum and agreed
with the sector. The Local Area Agreement process, if it lives
up to its promise, will enable negotiated targets for services
that meet local needs. In order to create capacity to address
local need, this is where the emphasis should be placed in future.
However, it is vital that all central government departments must
commit to this approach.
Does local government make adequate use of its
existing powers, such as its well-being, charging and trading
powers? What scope is there for greater use of those powers?
27. We are mindful of using existing powers
such as the ability to charge further than is being done currently.
Before using any such powers, the Council would need to carefully
consider the benefits and disadvantages, both to the Council itself
and to those who live and work in Buckinghamshire.
IMPROVING THE
RELATIONSHIP BETWEEN
CENTRAL AND
LOCAL GOVERNMENT
What difference has the central-local concordat
made to central-local relations?
28. In reality it appears that the concordat
is really between local government and Communities & Local
Government. Other government departments appear to have little
regard to its provisions.
29. To work effectively, the concordat requires
a mutual feeling of trust and partnership. This is not currently
the position. In previous years, for example, the Government has
promised that whenever new powers or legislation would be passed
down to local government, the corresponding funding would also
be allocated locally. This has not happened. There is also a strong
feeling that central government has decided on a course of action
before any consultation with local authorities.
Should an independent commission be established
to oversee the financial settlement for local government?
30. Many "independent" commissions
are not that independent in reality, as terms of reference are
decided by government. In addition, the success of any commission
depends heavily on its membership and on the implementation of
its recommendations. The long-running Lyons Inquiry, for example,
produced some sound recommendations that appear to have been shelved.
Unless there is a genuine commitment for change, a further review
will be pointless.
THE CONSTITUTIONAL
POSITION
Given the UK's constitutional settlement, what
protections should be placed in law to ensure local government's
ability to fulfil its responsibility as a balance on the powers
of central government?
What role should Parliament have in the protections
of local government's position within the UK's constitutional
settlement?
31. Issues of constitutional settlement
will be easier to address at the point when central government
is subject to the same inspection and financial restraints as
are placed on local government.
September 2008
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