Localism - Communities and Local Government Committee Contents


Supplementary memorandum from Department for Communities and Local Government (DCLG)

COMMUNITY BUDGETS: UPDATE NOTE FOR CLIVE BETTS

What are our commitments?

By April 2011 we will help establish a first phase of Community Budgets. 16 areas (see annex) are able to agree with local partners and Government what funding should be available to turn around the lives of families with multiple problems and to address barriers to service transformation.

In addition, Departments are working with other innovative areas to help them pool and align local budgets around key local priorities such as child poverty, health inequalities, local policing, tackling re-offending, worklessness, or in small areas like neighbourhoods and wards—which includes support for more integrated services based on the Local Integrated Services (LIS) approach.

The intention is that all areas will operate Community Budgets from 2013-14.

What progress have the first phase areas made in developing their Community Budget?

All 16 first phase areas now have Community Budget proposals which they are taking forward from next month. These explain:

  • who the partnership is;
  • the resources in the budget;
  • the barriers and flexibilities sought from Whitehall;
  • the outcomes and success measures;
  • their approach to tackling families with multiple problems; and
  • the plan for setting up the project post April.

How are we driving progress?

The Community Budget Group is chaired by Lord Bichard and brings together senior representatives of Whitehall Departments, the Local Government sector and the voluntary and community sector to drive progress and ensure issues are tackled.

A senior Whitehall Champion has been allocated to each area to assist in brokering resolutions with Whitehall Departments to specific issues or barriers raised by their area.

Ministers have been involved closely throughout and the Secretary of State, Baroness Hanham (who will provide the day-to-day lead on Community Budgets) the Chief Secretary to the Treasury and DfE Minister, Tim Loughton, recently met with Community Budget authority Leaders to discuss ambition and emerging barriers and flexibilities that require Whitehall action. A further meeting will take place on 24 March.

How many other areas are Departments working with?

Altogether 28 councils are involved in the 16 community budgets focused on Families with Multiple Problems. A further 48 councils have been involved in discussions with departments about adopting other community budgets, but this list is constantly changing as areas make contact with Departments.

What are other Departments doing to support the development of the CB approach?

They have:

  • set out a menu of central funding available for pooling and aligning to support families in needs in Community Budget areas—this is the starting point—and we are encouraging areas to add to that list, as fits their proposals;
  • written to their local agencies to encourage them to get involved in discussions with Councils about designing and contributing to their local Community Budget;
  • begun to receive—and are already actioning—"asks" from areas to change centrally-prescribed rules, systems and practice that are constraining their proposals. For instance DFE is offering the opportunity for Community Budget areas to access funding to invest in innovation and the redesign of services to deliver better outcomes and savings down the track as part of their CB proposals; and
  • engaged Community Budget areas on a range of initiatives such as shadow Health and Wellbeing Boards and financial incentive models.

What next for Community Budgets?

The plans set out by the 16 areas are only a starting point for each Community Budget—we expect their approach to widen and deepen over the course of 2011-12 and beyond.

Ministers want community budgets to encompass as many funding and policy outcomes as possible, so that decisions can be made freely and flexibly at the frontline.

The Government is fully committed to unlocking the potential of CBs. They are challenging to do and for this reason Baroness Hanham is bringing together a small group of CB areas to make rapid progress in tackling complex issues.

Annex

Which 16 areas are implementing the first phase of Community Budgets?
Birmingham

Blackburn-with-Darwen

Blackpool

Bradford

Essex

Greater Manchester (a group of 10 councils)

Hull

Kent

Leicestershire

Lincolnshire

London Borough of Barnet

London Borough of Croydon

London Borough of Islington

London Borough of Lewisham

The London Boroughs of Westminster, Hammersmith & Fulham, Royal Borough of Kensington & Chelsea and Wandsworth (a group of 4 councils)

Swindon

Which areas are working with Departments on local pooling and aligning?
Barnsley

Birmingham

Blackburn-with-Darwen

Blackpool

Bradford

Bristol

Calderdale

Cambridgeshire

Cheshire West & Chester

Cornwall

Devon

Greater Manchester

Hammersmith and Fulham

Hertfordshire

Islington

Kingston-upon-Thames

Leeds

Leeds City Region

Leicestershire

Lewisham

Lincolnshire

Newcastle-upon-Tyne

Plymouth

Salford

Sheffield

Solent

South Tyneside

Stoke-on-Trent

Swindon

Tameside

Tees Valley

Torbay

Warrington

Worcestershire

In addition, the Ministry of Justice are talking to a range of London Boroughs.



 
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Prepared 9 June 2011