Localism - Communities and Local Government Committee Contents


WRITTEN EVIDENCE SUBMITTED BY CORNWALL COUNCIL (LOCO 061)

SUMMARY

Cornwall Council welcomes the opportunity to provide evidence to the Select Committee on Localism. In summary the key points we would raise are:

¾  Cornwall Council is prepared for swift and decisive action now.

¾  Cornwall Council wants to transform itself and become a regional authority playing a more active role in all elements of public service.

¾  As a regional authority it would act as a commissioner and not a direct service provider.

¾  Cornwall Council is ready to innovate and take on radical new powers such as control of the A30 and A38 in Cornwall, and control of local housing.

¾  Cornwall Councils sees a much great role for both Town and Parish Councils and the Voluntary and Community sectors in terms of both engagement and service delivery.

¾  Cornwall Council considers that Town and Parish Councils need greater recognition from Whitehall. More support is required at a national and local level to build their capacity.

¾  Public sector needs to manage it's resources in particular finance, people, property and ICT collectively.

¾  Cornwall already has a number of vanguard projects that can demonstrate that it has the appetite and ability to transform places and public services eg launch of super-fast broadband, Active Partnering, Newquay Safe.

BACKGROUND

The Coalition Government is clear on the principles guiding its legislative programme:

¾  reform and change today for social mobility and prosperity tomorrow;

¾  devolution and decentralisation;

¾  a shift in power and responsibility from the state to the individual; and

¾  above all, a determination to tackle the public spending deficit.

Cornwall Council recognizes that despite all the current challenges it faces, there are lots of opportunities too. The public sector is undergoing radical and exciting reform.  We feel that the opportunities put forward by the Government's Big Society and Localism agendas could mean real changes in the balance of power in Cornwall and in the way services are delivered. As well as lobbying for more powers for Cornwall in turn we want to devolve more control and responsibility to local communities.

Additionally Cornwall is a natural community with a proud and strong identity, with natural administrative boundaries for many statutory agencies. It also has the advantage of being fully parished and has a vibrant third sector.

It is within this context that we provided evidence to the select Committee and the questions raised.

The extent to which decentralisation leads to more effective public service delivery; and what the limits are, or should be, of localism;

Cornwall Council as a new Unitary Council covering a County with a strong identity is in a unique position to act swiftly and decisively in response to the opportunities being made available by the Government in terms of decentralisation and localism.

The Council is radically transforming itself, and working closely with public sector partners to act as a regional authority for Cornwall. The Council and public sector partners recognise that Town and Parish Councils along with voluntary and community sector groups and the values they represent, are the building blocks of the Big Society

The Council is already taking early and decisive action by setting an emergency budget (October 2010) to protect the long term future of services and of local jobs. It is committed to becoming a leaner Council delivering services through arms length companies, local councils (Town and Parish Councils), social enterprise, communities, businesses, partnerships and the voluntary sector rather than doing everything in-house.

We consider that this is exactly in line with the policy direction and Big Society vision of the Coalition Government. Our direction is not changing; the pace, however, is accelerating.

It is particularly important in this time of radical change and public sector recession that Cornwall Council shows strong leadership to tackle immediate problems and grasp the opportunities that undoubtedly exist. Over the next five years we will rebalance our local economy which is currently far too dependent on the public sector.

Effective devolution from central government to local government and from local government to the communities it serves can lead to significantly more effective policy development, decision making and service delivery.

We think it is right and proper that within the spirit of Localism, that Cornwall has a greater control over its own destiny. We are keen to draw more powers down to Cornwall from the national and regional level. We want to control decisions about planning, housing and transport. We know Cornwall and we know the present and future pressures and demands we face through changing demographics and patterns of inequality. We want to make the big decisions ourselves so we welcome decentralisation. We would add:

¾  The principle of empowerment (of organisations and individuals) and subsidiarity are critical to successful decentralisation and allow decisions to be made at appropriate levels via appropriate local mechanisms.

¾  Service standards can be agreed locally within an overall policy context and delivery can be shaped to meet the local context and need. This principle applies at all scales—whether considering a Local Enterprise Partnership for Cornwall and the Isle of Scilly or the management of a local park (http://www.cornwall.gov.uk/default.aspx?page=24697).

¾  We recognise that in relation to the delivery of services different communities/client groups exist. We have identified 3 different types.

¾  Communities of place eg a market town.

¾  Community of identity eg travellers.

¾  Communities of need eg older people.

And that different these communities require different service delivery models and therefore different decentralisation and devolution models

¾  Principle of co-production can maximise the use of the skills and resources available. It allows local people to take ownership of local issues and moves away from a culture of dependency on the state and on others.

¾  Concepts such as Participatory Budgeting where citizens and/or local organisations play an active role in the decision making process are a form of local devolution and a concept that is just as important in a time of famine as a time of plenty. It is a concept that has been widely used in countries such as Brazil, and is a process in which Cornwall has been recognised as an exemplar of best practice for participatory budgeting in rural communities.

¾  Local government can use its skills, experience and knowledge to build local capacity and confidence to encourage and support devolution. Cornwall Council, working closely with the Cornwall Association of Local Councils has already put in place an "active partnering" scheme with local Councils. At the first level local Councils have a more active role in monitoring service delivery whilst the highest level the local Council has full responsibility for the delivery of local services. The Council is also encouraging smaller local Councils to work together (http://www.cornwall.gov.uk/default.aspx?page=24697). Should a local community want a higher standard for a devolved service, it has the ability to raise its own income locally to cover this.

¾  We fully recognise the vital role that the voluntary and community sector play and their role within the local economy. The Council is committed to helping transform the voluntary and community sector, to build its capacity and to increase its ability to compete within a commissioning landscape. We are developing a Commissioning Board and will encourage collaboration so as not to loose the local skills and knowledge that voluntary and community sector and SMEs can offer.

¾  In respect of council housing, decentralisation of the national housing subsidy system and putting it under local authority control would be very beneficial.  This would create a new financially responsible system that is transparent to tenants, hands control of an essential local asset back to local communities and removes the need for a bureaucratic inflexible system of national controls. It will allow long term asset management, better repair and maintenance planning and open up greater opportunities to deal with local needs housing.

¾  Developing a mixed, and community oriented, market for service delivery also builds in greater capacity to deal with peaks and troughs but also increases local resilience.

¾  We are committed to moving forward in a balanced and integrated way where "bottom-up" needs and desires are considered as part of strategic decision making. We are encouraging all Town and Parish Councils to develop an appropriate and realistic local Parish/Community Plan that articulates local needs and local aspirations

¾  In relation to school academies the Council has a neutral viewpoint but will work to support all schools whatever their status

¾  Some service such as planning have already devolved some decision making powers to local Councils.

Clearly the details of decentralisation will need to be carefully thought through to ensure appropriate accountability mechanisms are in place, that risk is managed and the chance of service failure is minimised. Cornwall Council and the communities it serves are not perturbed by this and there is a real appetite for the challenge ahead. We believe that with the Unitary Council now fully functional that we have a once in a lifetime opportunity to grasp the mettle and give Cornwall a much greater say in its destiny and deliver public services that the community really value.

We do not consider that the government should try to set the limits of localism. True localism is dependent on local communities and the organisations that serve it having the appetite, skills, confidence and capacity to take the opportunities being made available. This will change with time and local context. Therefore it would be difficult to place limits on it.

The lessons for decentralisation from Total Place, and the potential to build on the work done under that initiative, particularly through place-based budgeting

Cornwall has limited experience of formal "Total Place" working. However because of its peripherality, common administrative public sector boundaries and innovative spirit has been working within the principles of Total Place for a considerable time.

The Government is looking for local leadership and Cornwall Council is stepping up to the mark and to build on this existing strong base of partnership working. As well as taking on more powers ourselves we will devolve more powers and responsibilities and ask town and parish councils and community groups to take over some assets and activities. This is true double devolution. We will also work with our public sector partners to encourage them to seek more autonomy and to be able to take a greater role in determining Cornwall's destiny. To us this is making Big Society real.

But we aim to go beyond Big Society. We want to create BIG CORNWALL. In our leadership role, we will encourage public sector agencies to work together to deliver efficiencies over and beyond those required by Government. In this way we can create our own place-based budget and our own Cornish investment programme. This is BIG CORNWALL.

For Cornwall this means that service providers will avoid overlap and duplication leading to an improvement in efficiency, better local services tailored to local need resulting in better value for money.

Specifically the Council will:

¾  Accommodate the 30% reduction in Government funding within the Council itself through further efficiencies and unitary savings.

¾  Exceed the 30% Government savings target by working innovatively with public sector agencies to share facilities and integrate services. The excess savings will create a public sector "profit" for Cornwall.

¾  Use that profit to re-invest in Cornwall. This money together with any associated match funding can finance a capital programme. Our dream is to have a £1 billion investment programme for Cornwall funded by the public sector without any of the red tape of European funding.

¾  Deliver double devolution. In line with Government policy we will draw down more regional powers to Cornwall. For example, we want control of the A30 and A38 so that we decide locally on growth and development along these arterial routes.

¾  We will also devolve more power and responsibility to communities so that, for example, our larger towns control more of their own destiny and deliver more of their own services.

¾  Cornwall Council will fundamentally change. To deliver these radical reforms we can no longer operate like a large district council—we need to see the Council as a fully fledged regional authority in its own right. Using robust data and intelligence about Cornwall and its people, we will determine the services needed and establish commercial arrangements with businesses, social enterprise, the voluntary sector and communities to deliver services on our behalf. We will devolve services rather than centralise them based on robust data and intelligence and informed by our service users.

¾  Across the public sector in Cornwall we have a vast property portfolio and we are committed to rationalising and making optimum use of this portfolio. By sharing office facilities and through efficiencies in the front and back office, across the public sector we can deliver significant savings for Cornwall.  Where appropriate we will look to realise asset potential to add maximum value.  This will be done in a mature, realistic and non-sentimentalist way.  It will include sales on the open market but will also include releasing land for affordable housing and for asset transfer of community assets to Town and Parish Councils or local community groups. Each case will be assessed against an individual business case.

We have real experience of making this work. Newquay Safe a multi-agency project that includes public sector partners including the Town Council, private sector partners and local communities was set up following the tragic events of 2009 linked to under-age drinking and anti-social behaviour (http://www.cornwall.gov.uk/default.aspx?page=20130). It has been recognised nationally as an exemplar. It embeds principles of collocation, coproduction, shared intelligence and joined-up enforcement. We also recognise that there is a role for Cornwall Council to commit time and effort to facilitate the joining up at a local level.

The role of local government in a decentralised model of local public service delivery, and the extent to which localism can and should extend to other local agents

Within a decentralised model Cornwall Council would look to become a regional authority and look to commission services rather than deliver services. This should and would lead to a leaner authority but would also provide a mechanism for clearer accountability at a local level.

At the same time, to make this work it is important that any decentralised models covers as many possible public services as is practical. Previous work by Sir David Varney has demonstrated that when faced with life changing situations (known as "life events"), such as a family birth an individual family may be in contact with over 30 separate local and national agencies. It makes paramount sense for these agencies wherever possible to share information and fit within the same decentralisation framework. Not only would this be more effective and less burden but would increase efficiencies and release savings.

At present many parts of the public sector work to differing public accountancy models and the pooling/transfer of funds between different agency is difficult, as is year end closure and the treatment of debt and year end over/underspend. Move towards more complimentary short and long term accountancy models would help.

The opportunities for the public sector are huge and local government has a clear leadership role in bringing the parties together and delivering effective programmes of change. By setting up an arms length council-owned company to deliver shared services we would have the commercial freedom to deliver these services on behalf of partner agencies within and outside our borders

A fluid and flexible model of service delivery alongside and integrated with partners can accommodate many other agencies so that citizens benefit from truly joined up services brought together in a sensible way to make things far more convenient.

The action which will be necessary on the part of Whitehall departments to achieve effective decentralised public service delivery

To facilitate effect devolution and decentralisation the following will be needed;

¾  Whitehall will need to be joined up, particularly in relation to the services provided by local government, police and health and

¾  Whitehall needs to fully recognise Town and Parish Councils and give it an appropriate recognition at Ministerial level. The voluntary and community sector are recognised through the Office for Civil Society, yet Town and Parish Councils have no similar recognition. To some they have become the "Forgotten Sector". At present capacity building of the third sector is partly financed by the government—a similar package should be introduced via NALC (National Association of Local Councils) to be distributed through the existing framework of County Associations.

¾  Encourage simple methods to provide local democratic accountability for the delivery of all public services. Current concepts being floated, such as elected Police Commissioners and Health Watch, on the face of it complicate rather than simplify local democratic accountability and could become a burden as opposed to adding value and accountability. We strongly feel that improved local accountability can be achieved by building on existing democratic processes rather than by creating new ones.

¾  Minimise national target setting/and inspection within overall national framework of service standards to avoid a potential "post code lottery" in the delivery of key services.

¾  Encourage joined-up "Local" Strategic organisational business planning within similar time-frames and longer term budget envelopes. At present each public sector partner needs to produce its own annual business plan and has its own budget setting process.

¾  Encourage the open sharing of key data between public sector agencies, but at the same time make the rules on the selling of public data more accountable.

¾  Promote the co-terminosity of public service delivery administrative areas. Not only will this make day to day service delivery easier but will reduce public confusion and therefore increase local satisfaction.

¾  More complimentary public sector accountancy models. Ideally these should be based on a five year package of committed government funding. Not only does this provide the opportunity to plan ahead, but gives massive opportunities to deliver large procurement savings. It also moves away from the 'funny money' grant culture of the last ten years but gives all players in the market, particularly those in the voluntary and community sector to build for the future and invest in their staff.

The impact of decentralisation on the achievement of savings in the cost of local public services and the effective targeting of cuts to those services

Public services will only deliver their (individual) savings if they work together and share resources/challenges. Cornwall Council is already looking to

¾  Deliver a 30% reduction in procurement costs and double the local supply chain. This means using more local suppliers and encouraging the growth of local enterprises to deliver the services and products we need. We want more of our business going to local companies so more of our spend remains in Cornwall.

¾  Achieve the lowest waste collection costs and the best recycling rates in the UK.

¾  Be carbon neutral and self sufficient in energy. Deliver £20 million of annual revenue through selling green energy to other organisations.

¾  Have top class neighbourhood services. This will include environment, highways, waste, police and community services and will strive for high levels of customer satisfaction. Through efficiencies, reduce costs by £10 million a year. This will build on the Neighbourhood Pathfinder in Newquay which is jointly sponsored by the Home Office and CLG.

¾  Integrate health and social care and create new organisations focused on health and wellbeing, becoming 30% more efficient.

¾  Integrate benefits services across agencies with a 30% productivity gain as well as providing a more customer oriented system.

¾  De-trunk the A30 and A38 and in the process generate 20,000 jobs and £20 million of annual extra revenue for the council. This would come from increasing the council tax base and the economic activity generated by development along the main roads.

¾  Re-profile and re-think the capital investment programme to focus on big economic projects that provide financial benefits through savings or income. This could deliver 50,000 jobs and £200 million annual revenue.

¾  Property—move to a three-hub model and from 78 to 18 offices. This would deliver a £10 million annual saving, generate £50 million in capital receipts and at the same time reduce our carbon footprint.

¾  Recent announcements about the introduction of super-fast broadband will increase opportunities for remote working reducing the need to travel whilst at the same time adding value to and boosting the local economy.

What, if any, arrangements for the oversight of local authority performance will be necessary to ensure effective local public service delivery

Cornwall Council considers that its performance should be judged by the people of Cornwall and by demonstrating accountability between public sector partners at a strategic countywide level through and appropriate democratic process as a regional authority.

Sensible key performance indicators should be reported nationally to enable meaningful comparison between different parts of the country. The concept of a simple "power of competency" is welcomed.

Cornwall Council has already delivered increase local accountability through Community Networks and is working closely with Police and Health to expand this platform to provide increased local accountability for many of the local services they provide.

Cornwall Council and local partners strongly advocate for a minimalistic approach with a significantly reduced burden of inspection.

How effective and appropriate accountability can be achieved for expenditure on the delivery of local services, especially for that voted by Parliament rather than raised locally

Cornwall Council feels that there should be a minimalistic overall national framework of service standards to avoid a potential "post code lottery" in the delivery of key services but this must not be too onerous and pose a greater burden than external inspection. We also feel that there should be a fair and transparent allocation of resources from Parliament that take full account of the difficulties of providing services to rural and dispersed communities.

As Cornwall Council is responsible for the expenditure of funds voted for by parliament it is keen to explore options whereby local MPs have a more active role in the operation of the Council and in the operation of other public sector partners. This is of course dependent on their being common electoral boundaries at appropriate geographies. The introduction of a parliamentary constituency that covers Cornwall and parts of Devon/Plymouth would make this difficult and impractical.

October 2010


 
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