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
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