Sub-national governance in changing times

2nd December 2010Nick Hope

Senior Researcher, NLGN

www.nlgn.org.uk

New Local Government Network (NLGN) is committed to promoting the decentralisation of power, public service reform, enhancing local governance and empowering communities.

www.nlgn.org.uk

3

KeyFormal Accountability (thicker line = stronger accountability)

Relationships / collaboration / informal influence

Accountability & Influence

Citizens

Whitehall

Parliament

Local government

Delivery

agency

Delivery agency

Intermediary body (e.g.

PCT)

ALB

Delivery

agency

Councils are heavily influenced by total place

But the coalition is devolving in order to build a bigger society

4

KeyFormal Accountability (thicker line = stronger accountability)

Relationships / collaboration / informal influence

Significant change to status quo

Accountability &Influence

Citizens

Whitehall

Parliament

Local government

Intermediary body (e.g.

PCT)

Communities Communiti

es

Delivery agency

Elected Commiss-

ioner

Delivery agency

Delivery agency

Communities

ALB

Negative localism: freedom from interference

Positive localism: the power and resources to

fulfil potential

Does the coalition pass the Isaiah Berlin test?

Positive liberties:

1. Community-based budgets?

2. TIF

3. Business rates

Negative liberties:

1. Abolishing CAA

2. Removing ringfencing

3. Incentives to set 0% council tax

The greatest negative liberty of all

Local Government Core Funding Reductions

20

21

22

23

24

25

26

27

28

29

2010-11 2011-12 2012-13 2013-14 2014-15

Year

£bn

Some will be hit harder than others

Making own positive localism

“What if this is it?”, Local Authority Chief Executive

LEPs must ensure that we target investment more strategically

Strategic planning – housing, waste, energy, transport and economic development could all benefit from LEPs:

•Joint lobbying of Whitehall – joint voice of LAs and business

•Fast-tracking of the development management process

•Planning intelligence and ensuring integration with economic plan/assessment

•Removing pipeline blockages – for economically important planning applications

•Leading strategic policy frameworks and developing comprehensive infrastructure plans

We should still push for LEP powers

Centralisation:

•Key sector development

•Inward investment

•Work programme

•Skills commisioning or at least steer of investment

These are key economic drivers and should be made available to LEPs – many LEPs put these in their bids (skill was key “ask” and yet LEPs and LAs cut out of Skills Strategy from BIS a couple of weeks ago).

Mechanisms to achieve Devolution to LEPs?

•“Right to bid” and double devolution – on statutory footing?

•Who should decide? Vested institutional self-interest and need for neutral arbiter.

•Also opportunities through greater financial autonomy– business rate localisation – to have more economic focus

•Also opportunities for mayors to win powers for cities and city-region LEPs- new powers to incentivise successful referenda promised by Whitehall – what should these be?

New Local Government Network (NLGN) is committed to promoting the decentralisation of power, public service reform, enhancing local governance and empowering communities.

www.nlgn.org.uk