Memorandum from 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?

 

1.0 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.

 

2.0 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.

 

3.0 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.

 

4.0 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?

 

5.0 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 e.g. 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.

 

6.0 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.

7.0 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.

 

8.0 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.

 

9.0 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.

 

10.0 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.

 

11.0 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?

 

12.0 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.

 

13.0 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 (e.g. abolition of capping) and shelved others (e.g. council tax banding reform) does not bode well for the future.

 

14.0 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.

 

15.0 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.

 

16.0 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.

 

17.0 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?

 

18.0 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?

 

19.0 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).

 

20.0 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?

 

21.0 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?

 

22.0 Yes, this would take away some of the 'politicalisation' of the current process i.e. 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?

 

23.0 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?

 

24.0 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