Supplementary memorandum from the Department for Communities and Local Government (BOP 53A)

 

When I met the Committee on 12 January, I undertook to provide you with further information on various issues. My detailed response on these matters is below.

 

In relation to the questions on the numbers of senior staff in CLG and the Government Offices with local authority experience, raised by Dr John Pugh:

 

Q625: Can you give us any kind of figures or data that indicate the number of top civil servants in your own department that will have local authority experience? Have you any idea what percentage of them would have either worked for a local authority or been on a local authority?

Q626: Could you couple that with a note on the number of heads of government offices in the various regions that have had direct experience of local government?

 

We have surveyed our senior leadership team on these points. The survey shows that around a quarter of Senior Civil Service staff in the Department have previously worked in a local authority. The proportion for senior Government Office staff is one third. The survey also shows that, of those who responded, none had served as an elected member on a local authority.

 

The Chair also asked about the origins of pooled money:

Q634: Can I just ask about the money in relation to local area agreements? Where money is being pooled does your department have information on how much of that money is coming from local government and how much from the other partners? If you do not have it now can we have it later?

Q635: The perception is that it is largely local government money that is put in and not much else

 

All local government funding, except ring-fenced grants whose conditions restrict them for doing so, is available for pooling. This includes formula grant (RSG/business rates), Area Based Grant, specific un-ringfenced grants, and specific ring-fenced grants whose purposes make pooling possible. It also includes councils' own resources, whether from council tax, fees and charges, or other income. It is a matter for each individual council to decide how much to pool, and we do not collect information on that. There is also no requirement for us to collect this data from other partners.

 

You may also be interested to know that we are reducing the overall amount of ring-fenced funding (excluding schools) as a proportion of Government grant over the three year period from 11.2% in 2008-09 to 8.0% in 2010-11.

 

In response to the points made by Andrew George and the Chair on the European Charter for Local Self Government

Q663: The Council of European Municipalities and Regions and others also in their evidence have suggested that we are not compliant with Articles 2, 4, 8 and 9. Would it be possible for you to perhaps provide a note to us to demonstrate the extent to which the Government is compliant with those articles in particular?

 

In ratifying the Charter in 1997, the Government satisfied itself and Parliament that existing domestic legislation and policies for local government were already wholly compatible with the Charter. A copy of the Command Paper which was laid before Parliament at the time of ratification is attached at Annex D.

 

Except as prescribed by legislation, local authorities in England are independent and not accountable to central government. Hence they are able to determine their own administrative structures, recruit competent staff, raise local taxation etc.

 

Article 2 of the Charter: Constitutional and legal foundation for local self-government

 

This article provides that the principle of local self-government should be enshrined in written law or that it should be recognised in the constitution "where practicable". In the UK the principle of local self-government is recognised in the whole corpus of domestic legislation including, particularly, the Local Government Acts, that make provision for the powers and procedures of local government which are entirely compatible with the Charter. There is no need for taking the exceptional step - as suggested by some - of giving this principle specific constitutional recognition or providing a comprehensive statement of the Charter's principles in an Act of Parliament.

 

Article 4: Scope of local self-government

 

This article lays down the general principles on which the responsibilities of local authorities and the nature of their powers should be based. It provides for powers and responsibilities to be prescribed by statute - as is the case in the UK. It further provides for authorities to have full discretion as to how they exercise their powers "within the limits of the law". In the UK this is certainly the case - local authorities are independent and not accountable to central government. It also articulates the general principle that the exercise of public responsibilities should be decentralised, that the overlap of responsibilities should be avoided, that authorities should be allowed discretion in adapting the exercise of their powers to local conditions and that they should be fully and openly consulted on relevant matters - very much at the heart of the 2007 Central-Local Concordat between the government and the LGA.

 

Article 8: Administrative supervision of local authorities' activities

 

This article deals with the supervision of local authorities' activities by other levels of government and provides for such supervision to be exercised according to statute - clearly the case in the UK. It requires that supervision should normally aim only at ensuring compliance with law, and that any intervention shall be kept in proportion

 

Whilst CLG retains the powers to intervene in cases of significant and enduring under performance, the emphasis in the first instance is on the sector to be given the opportunity to address issues. Local government and partners have the prime responsibility for managing performance within their local areas. They will be supported by local government-led Regional Improvement and Efficiency partnerships, made up of authorities, working with partners, committed to working together to raise performance collectively.

 

Where performance issues are not being addressed quickly or effectively, Government Offices will work with central and local partners to provide challenge and broker appropriate action. This may range from additional support from the sector to consultancy support, inspection, or, ultimately, formal intervention action. Any formal engagement needs to be proportionate, reflecting local context and performance as well as where the most efficient and effective sources for support are located. Increasingly this will be at local or sector level.

Comprehensive Area Assessment (CAA) will be introduced from 1 April 2009 as part of the new local performance framework, replacing Comprehensive Performance Assessment (CPA) and most other existing inspection programmes for local authorities. CAA will be carried out jointly by the independent local service inspectorates on behalf of Government and is designed to focus on assessment rather than regular on-the-ground inspection. Inspection will primarily be triggered by identified risk and tailored to local circumstances, so that the inspectorates can target their effort on those areas and services where inspection can have the greatest impact or where the risk of failure is most significant, thus reducing the administrative and overall impact of inspection on local bodies which commission and deliver services.

 

Finally, the government's better regulation policy aims to reduce burdens by simplifying existing regulatory regimes, removing consent requirements etc and ensuring new policy imposes the minimum new burden by following better regulation principles

 

Article 9: Financial resources of local authorities

 

The UK fully complies with Article 9 which deals with financial freedoms and entitles local authorities "to adequate financial resources of their own". Hence, the UK recognises that authorities are free to decide how to use resources "within the framework of their powers"; recognises authorities' need for their own resources (decisions as to quantum are taken in accordance with national economic policy); and, in England, the Government's new burdens procedure requires that the net additional cost of all new burdens placed on local authorities by central government must be fully and properly funded.

 

Q666: We have a slight interact with our signing the European Charter of Local Self-Government, for example, because if you are saying that Parliament has untrammelled powers would the signing of the European Charter of Local Self-Government actually limit Parliament's powers to, should it wish, convert us into a totally centralised state?

 

The European Charter of Local Self-Government places obligations on States parties to the Charter. These obligations are binding as a matter of international law. UK governments' consistent policy is to comply with the UK's international obligations.

 

If Parliament legislated contrary to the provisions of the Charter the UK would be in breach of its international obligations. If the Government wished to propose legislation that would result in breaching these obligations, it would either first denounce the Charter under Article 17 or ensure the legislation did not come into force until the Charter had been denounced.

 

If there were a prospect of Parliament passing legislation which would contravene international law, the Government would highlight fully to Parliament the consequences of such a step and would take any necessary action to avoid the UK becoming in breach of its international obligations.

 

Finally, I would like to take this opportunity to emphasise the work my Department has done with Department of Health to encourage greater partnership working between local government and NHS organisations.

 

A significant part of this has been ensuring that health structures and processes are properly aligned with the local performance framework. The legislative framework for Local Area Agreements (LAAs) places a duty on PCTs, NHS trusts and NHS foundation trusts to cooperate with Local Authorities (LAs) and other named statutory partners in determining the targets for their LAA. Further, PCTs, NHS trusts and NHS foundation trusts are required to have regard to the targets they agree during this process. This joint working on target setting is reflected in the fact that 3 of the top 10 indicators selected in the largest number of LAAs are health related - teen age pregnancy, smoking and obesity. For example, 70 percent of areas (106) are aiming to lower teenage conception rates (the second biggest priority in England).

 

This work is supported by the new assessment and inspection regime, Comprehensive Area Assessment. This is an integrated assessment of outcomes in a local area, including how local partners work together to deliver on priorities for local people.

 

Meanwhile, the NHS Operating Framework 2009/10 draws specific attention to the importance of PCTs and Trusts working with Local Authorities and other members of the Local Strategic Partnership to develop their area's LAA. It also emphasises that PCT plans should be aligned with Local Area Agreements. This is facilitated by close alignment between the NHS Vital Signs, and the National Indicator Set. Recent information from areas such as North Somerset shows health organisations are working to embed LAA targets into their PCT plans.

 

This system alignment has been matched by the development of joint appointments and commissioning initiatives between PCTs and LAs. Evaluation of the Local Government Procurement Agenda suggests that 30 percent of local authorities are involved in joint commissioning of health and social care, with 14 percent considering it (although this could include other collaborations than just with the PCT). One example of joint commissioning is North East Lincolnshire Care Trust Plus. this is new organisation which commissions all health and social care services within its area, in addition to managing the staff who provide these services to local patients and service users. It is responsible for a combined health and social care budget of £270 million for the 170,000 residents of the Immingham, Grimsby and Cleethorpes area.

 

March 2009

 

 

EXPLANATORY MEMORANDUM ON A COUNCIL OF EUROPE CONVENTION ON LOCAL SELF‑GOVERNMENT

 

Title of Treaty

 

The European Charter of Local Self‑Government.

 

Command Paper Number:..3884

 

Subject Matter

 

I. The purpose of the Charter is to lay down basic standards protecting democratically elected local government within the constitutional or legal framework of member states of the Council of Europe. The Charter was opened for signature as a convention on 15 October 1985 and was signed on behalf of the United Kingdom Government on 3 June 1997.

 

2. The Charter is in three parts. Part I contains the operative provisions relating to local selfgovernment to which signatories to the Charter agree to be bound. It specifies the need for a legal or constitutional foundation for local self‑government (Article 2), defines "local self‑government" as the right of loyal authorities to "manage a substantial share of public affairs under their own responsibility" (Article 3), and establishes (Article 4) the principles governing the nature and scope of local authorities' powers. i

 

3.Further articles in Part I are concerned with: protecting the boundaries of local authorities

(Article 5); ensuring that they are able to determine their own administrative structures and recruit competent staff (Article 6); defining conditions for holding local elective office (Article 7); ensuring that supervision by higher level or controlling authorities of the activities of local authorities is not disproportionate (Article 8); and, within the constraints of national economic policy, ensuring that local authorities have adequate financial resources at their disposal on terms which are commensurate with their responsibilities under the law (Article 9). The remaining provisions in Part I cover the right of local authorities to co‑operate and form associations (Article 10) and the protection of local self‑government by the right of recourse to a judicial remedy (Article 11).

 

4.Part II contains miscellaneous provisions relating to the scope of the undertakings entered into by the parties. Parties undertake to be bound by at least twenty of the thirty paragraphs which make up the Articles of Part I (ten of which must be chosen from fourteen specified paragraphs) but can agree to be bound by additional paragraphs after ratification (Article 12). On ratification a Party can specify the categories of local authorities to which it intends to apply the Charter or the categories to be excluded (Article 13). A Party is also required to supply the Secretary General of the Council Europe with information concerning how it has complied with the Charter (Article 14).

 

5.Part III contains final provisions consistent with those customarily used in conventions .

drawn up under the auspices of the Council of Europe: the Charter enters into force three months after ratification by a Party (Article 15); a Party may specify, at the time of ratification, that the Charter will apply to certain of its dependent territories (Article 16); a Party may denounce the Charter five years after the Charter comes into force for it (Article 17); and the Secretary General is required to notify member states of acts such as signature and ratification by member states (Article 18).

 

European Union (EU) implications

6.There are no specific EU implications. The Charter relates to matters which are entirely

within the competence of member states of the Council of Europe.

 

Ministerial responsibility

7. The Secretary of State for the Environment, Transport and the Regions takes the lead, in consultation with other relevant UK Ministers, on inter‑governmental issues affecting local government. The Secretaries of State for Scotland, Wales and Northern Ireland are respectively responsible for the framework of local government in those countries. However, referenda in Scotland and Wales held in September 1997 have established the demand for a Scottish parliament and a Welsh assembly. Subject to legislation, it is proposed that responsibility for local government should, in future, become a matter which is devolved to those bodies.

Policy implications

 

(i)General

 

8. The benefits to the United Kingdom of being a Party to the Charter derive, firstly, from its position as a supporter of the principles of the protection of human rights and of democratic self‑government which are fundamental to the purpose of the Council of Europe and, secondly, from the value of local government as providing local democratic leadership to communities and as securing the provision of public services.

 

9. The importance of local democracy to the promotion of human rights and the preservation of stability in Europe was specifically acknowledged in the final declaration of the last Council of Europe Heads of Governments Summit held in Strasbourg on 10‑11 October 1997. The United Kingdom is fully committed to the view expressed in the declaration. Subscribing to the Charter demonstrates the depth and authenticity of that commitment and will strengthen the United Kingdom's advocacy of local democracy in international relations.

 

10. The UK Government accepts that a wide range of domestic policies ‑ on, for example,

education, social services, transport, economic development, environmental protection and law and order ‑ can only be properly developed and implemented in close partnership with local government.The Charter enshrines basic principles already reflected in the United Kingdom system of local democracy which the Government intends to develop and reinforce. Subscribing to the Charter strengthens the Government's partnership with local government and will enable key domestic policies to be developed and implemented more effectively.

 

i 11. By subscribing to the Charter, the United Kingdom is bound to apply the standards prescribed in the Charter to its own system of local government. The standards are compatible with the existing and developing system of local government in the United Kingdom.

 

(ii)Financial

 

12.There are no financial implications of subscribing to the Charter since, as already stated, the United Kingdom system of local government is already compatible with its provisions.

 

(iii)Reservations and declarations

 

13. For the reasons given above in relation to the existing compatibility of the United Kingdom system of local government with the principles of the Charter, the United Kingdom proposes to undertake in subscribing to the Charter to be bound by all of its provisions, without recourse to the provision in Article 12 for subscribing only to certain of its provisions.

 

14. As regards the provision in Article 13 in relation to the categories of authorities to which the Charter applies, the relevant categories of local authorities in the United Kingdom to which it is proposed to apply the Charter are: in England, all county councils, district borough councils, London borough councils and the Council of the Isles of Scilly; in Wales, all county councils and county borough councils; and, in Scotland, all councils constituted under section 2 of the Local Government (Scotland) Act 1994.

 

15. Accordingly, it is not proposed to apply the Charter to parish and community councils in the United Kingdom, given their limited statutory powers and role in relation to local service delivery, or to the Common Council of the City of London, given its unique and distinctive organisational and electoral arrangements. Moreover, it is, and always has been, the understanding of the United Kingdom that the term `local authority' in the Charter does not include local or regional bodies such as police authorities which, by reason of the specialist functions for which they are responsible, are composed of both elected and appointed members.

 

16. For the time being, it is also proposed not to apply the Charter to district councils in Northern Ireland, given the lesser range of functions currently assigned to local authorities in that country compared with the rest of the United Kingdom. The Government reserves the right, however, to apply the Charter to local authorities in Northern Ireland in the light of future constitutional and political developments.

 

17. In view of the limited role of local government in those territories, it is not proposed that the Charter should (under the provisions of Article 16) apply to any of the United Kingdom's dependent territories.

 

Implementation

 

18. No amendments to United Kingdom law are necessary to ensure compliance with the Charter. It is the Government's intention that any future legislation affecting local government should further strengthen the degree of compliance with aspects of the Charter and ensure continued compatibility with its provisions.

 

Consultations

 

I9.There have been wide‑ranging discussions on the significance and relevance of the Charter TO the United Kingdom since it was opened for signature in 1985. Local government, in particular, has made clear its strong support for the Charter as a basic text setting out the principles of local democracy and the role of local government in member states of the Council of Europe. The Report of the all‑party House of Lords Select Committee on Relations between Central and Local Government published in July 1996 recognised that subscription to the Charter "would provide a clear signal by central government that it recognises the value of local government". Responses to the Government's signature of the Charter on 3 June 1997 were entirely favourable.

 

20. The document, "A Framework for Partnership", signed by the Deputy Prime Minister and the Chairman of the Local Government Association on 3 November 1997 and setting out the basis of the relationship between central and local government in England, specified that the Government intends to ratify the Charter "in recognition of the independent legitimacy of local government". A similar but separate document is planned for Wales. The Independent Commission on Local Government and the Scottish Parliament will be studying how to develop the role of strong local government in Scotland.

 

March 2009