Memorandum by Sunderland City Council
(BOP 37)
SUNDERLAND
Sunderland has a population of 280,600, (2006 mid
year estimate) and covers an area of 13,737 hectares. Situated
on the north-east coast of England, it contains three distinct
settlement areas: the heavily urbanised north and south banks
of the River Wear estuary to the east of the A19 trunk road;
the maturing New Town of Washington to the west of the A19; and
a sprinkling of smaller, former coalmining settlements—largely
separated by open countryside—in the south of the district.
Over the last 20 years the city has undergone
a marked economic and social transition following the decline
in the traditional industries of mining, shipbuilding and heavy
engineering. Sunderland now functions within a global context,
competing at an international level. Thousands of new jobs have
been created as part of a large-scale industrial shift towards
the automotive manufacturing and service-based "call centre"
sectors. There are now more people employed in new service industries
than were employed in traditional industries.
The Local Government Act of 1972 (enacted
on 1 April 1974) established Sunderland Council as a "Metropolitan
Borough", a council within the Metropolitan County of Tyne
and Wear. Tyne and Wear Metropolitan County Council was abolished
on 31 March 1986 and since that date Sunderland Council
has been a unitary local authority. Sunderland was granted city
status in 1992.
SUMMARY OF
KEY POINTS
— Increased autonomy is required if local
government is to deliver priorities in their local area yet central
government still holds a "power of veto" over local
government.
— Local government's community leader role
should be strengthened to the extent that it has the ability to
influence the leadership in other public services
— Local government's dependency on central
government for its financial settlement makes it difficult for
it to have true autonomy in fulfilling its "place-shaping"
role.
— Central government's requirements appear
to be more important than the requirements of citizens; which
goes against the current desire for greater community empowerment
and say in the design and delivery of services.
— A timetable to consider the recommendations
of Sir Michael Lyons, and bring about reform should be set as
a matter of priority.
— Greater financial freedom for local authorities
to generate income should be explored.
EVIDENCE
FURTHER DEVOLUTION
Does local government need greater autonomy from
central government? If so, in what ways?
1. The Central-Local Concordant describes
shifting power away from the state and to local communities on
the presumption that powers are best exercised at the lowest effective
and practical level. This increased autonomy is required if local
government is to deliver priorities in their local area. However
central government still holds a "power of veto" over
local government, for example when each local area was developing
its new Local Area Agreement (LAA) they were required to seek
the "approval" of government (via Government Offices).
Government could therefore request changes to fit in their perception
of what the local areas priorities were, raising the question
of whether this is true autonomy. Government also holds the majority
of funding for local government, which means that it can influence
policies and priorities in an area if it so wishes to do so. Local
government needs to be given greater freedom in managing local
finance if it is to have true autonomy.
2. Greater autonomy would also benefit service
areas across councils that are required to report on performance
as a statutory requirement. Performance monitoring requirements
are measured against specific outcomes and this can on occasions
fail to tell the real story. Not capturing all available evidence
can influence results in a negative way or not present a true
picture of achievement of delivering excellence in terms of service
delivery.
3. Whilst recognising that compliance against
specific standards and regulators such as the Comprehensive Area
Assessment (CAA) regime is paramount to achieving excellent services
to the public, it can put significant pressures on staffing and
existing resources.
4. It is recognised that areas are affected
in different ways and at different levels. The voluntary and community
sector in particular might welcome greater autonomy but this might
impact negatively in the relationship it has and the support it
is offered by central and local government.
Do local government's role and influence need
to be strengthened in relation to other public services, such
as policing and health?
5. The advent of LAAs; the new National
Performance Framework and the impending CAA regime necessitates
closer working relationships between local government and the
other public services. Whilst CAA inspections cover an area and
a basket of partner services it is to be expected that it will
be local government that will bear the brunt of any criticism
arising from the inspection process even in circumstances where
it affects a service that they don't necessarily have direct control
over eg policing. It is therefore important that local government's
community leader role is strengthened to the extent that it has
the ability to influence the leadership in other public services
if they are deemed to be failing their local community.
6. At a service level within Sunderland,
the health and policing agenda is being influenced through the
Wellness Partnership and the Safer Sunderland Partnership—these
links need to continue to form and the language spoken by each
organisation needs to become clear and transparent, as well as
joint positions established etc. It is clear from the projects
that the council and its partners have been working on that efficiencies
are available if waste and duplication between public sector organisations
is reduced.
7. In Sunderland action is being focused
on the approach to closing the gap across a services to ensure
equality in service delivery is achieved. Partnership working
at a local and national level influences this agenda and communication
and shared priorities are worked on in a joined up way. This can
be seen in the work of the Sunderland Partnership and its Thematic
Groups. Opportunities for strengthening this position in relation
to profile and importance should be explored in detail and across
all local government services with clear evaluation of the benefits
this might achieve. Detailed consultation (internal and external)
should be considered and communicated simply to ensure citizens
and the local government workforce are appropriately engaged in
the process.
8. In relation to health, existing powers
are utilised through the development of the Sunderland Strategy
2008-2025 and its themes—of which one is health. The
development of the LAA places the local authority and health at
the heart of taking forward the priorities identified.
9. At a more specific level, the role of
Section 75 (of the National Health Service Act 2006) arrangements
places the local authority in a position where it can develop
joint arrangements with health service providers, thus influencing
the development of local services that are provided jointly ensuring
better outcomes for individuals. A number of Section 75 arrangements
exist between Sunderland City Council and the Sunderland Teaching
Primary Care Trust, alongside other commissioning arrangements.
10. The role of the council's Health and
Wellbeing Review Committee provides a further example of how the
council is using existing powers to influence health provision
and developments within the city.
11. A joined up local approach, which is
the operating remit of Local Strategic Partnerships, best serves
local communities. Government should strengthen these models.
FINANCIAL AUTONOMY
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?
— Should local government be able to
raise a greater proportion of its expenditure locally?
— What effect does the capping of council
tax rises have on local accountability?
12. Local government is largely dependent
on central government for its financial settlement which makes
it difficult for it to have true autonomy in fulfilling its "place-shaping"
role. Local authorities have to devote ever more attention to
regulations, targets, performance measures, guidance, different
inspectorates and requirements set out in the variety of specific
grants. The requirements of central government appear to be more
important than the requirements of citizens; which goes against
the current desire for greater community empowerment and say in
the design and delivery of services.
13. Sir Michael's Lyons Report into local
government finance made some key recommendations in relation to
future financial management arrangements for local government.
A timetable to consider these recommendations and bring about
reform should be set as a matter of priority. However the way
in which government has rejected some of these recommendations
(eg abolition of capping) and shelved others (eg council tax banding
reform) does not bode well for the future.
14. Financial constraints can also impact
significantly on service delivery and future planning of services.
Staffing and resources are affected, and putting financial pressures
on delivering and maintaining services of the highest standard
within existing budgets is a challenge for any council service.
15. Greater financial freedom to generate
income should be explored. Delivering excellent council services
at minimal cost is a priority and a challenge. Areas that could
be focused on are those that have the greatest influence to people's
lives. This might be through health, education, sport or culture.
16. Greater stability over funding streams
that come from central government would reduce the effect of the
"boom and bust" culture that us created by fixed term
funding regimes.
17. In an ideal world local authorities
would be able to raise a greater proportion of their expenditure
locally, however the ability of raise this expenditure will be
dependent upon the local economy and will vary between areas.
EXISTING POWERS
To what extent are local government services a
product of national or local decision-making?
18. It would be expected through careful
apportionment of planning objectives and allocation of resources
that local government services are a product of national or local
decision making in a positive way. Greater freedom to consult
and implement actions from consultation would be of benefit. Greater
communication of how citizens engage and influence services might
need exploring.
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?
19. The city council's wellbeing powers
rest as a statutory duty with the Director of Health, Housing
and Adult Services and a lot of work has been undertaken across
the council on this regard. For example, the wellness agenda encompasses
the general population (access to gym facilities), those identified
at being at risk (GP Referral Schemes) and those people who are
vulnerable and need support to participate in physical activity
(social and health care workers based in Aquatic Centre).
20. Implementing the social model of disability
across the city is a key priority for the city council and is
being driven by the wellbeing powers in place.
Improving the relationship between central and
local government
What difference has the central-local concordat
made to central-local relations?
21. There is a danger (that must be avoided)
that the concordat is used as a further means of evaluating local
authorities and, as such, becomes a drain on already limited resources
(nationally and locally).
Should an independent commission be established
to oversee the financial settlement for local government?
22. Yes, this would take away some of the
"politicalisation" of the current process ie decisions
can currently be taken for political purposes by the government
of the day rather than being based on the needs of local government.
Sir Michael Lyon's Report endorsed the idea of an Independent
Finance Commission, this is also supported by the Local Government
Association. An independent commission would be more objective
in the same way that independence was given to the Bank of England
to set interest charges having previously been decided by the
Government.
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?
23. Protections should be maintained and
strengthened via existing audit and inspection arrangements such
as the CAA.
What role should Parliament have in the protection
of local government's position within the UK's constitutional
settlement?
24. The role of Parliament should be that
of supporting, strengthening and enabling the protection of local
government if the relationship between central and local government
is to be inclusive and productive.
September 2008
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