08 October 2004
Sixty-two local authorities in 21 areas will take part in the first Local Area Agreements as Whitehall moved this week to rationalise funding and give councils a taste of new localism.
But, as the areas were announced, it emerged that the amount of funding involved and how far government departments will let go is still to be resolved. The Local Government Association said negotiations would start shortly but conceded there was 'still all to play for'.
Under the scheme, which will begin next April, areas as diverse as Devon, Dorset, Derby, Wigan and Bradford will be given direct control over funding from the Department of Health, the Office of the Deputy Prime Minister, which is leading on the scheme, and the Home Office. These funding streams, which include up to 70 separate initiatives, will be merged into three pots covering children and young people, safer and stronger communities and health and older people.
The areas, led by top-tier councils, will negotiate targets with the Government Offices of the Regions and will have the freedom to spend the money to meet these goals without Whitehall restrictions. The ODPM envisages efficiency savings running into millions of pounds, with LAAs replacing bidding for departmental cash and complex monitoring.
Telford & Wrekin Council will be the only authority given a single pot of cash, indicating the cautious approach of Whitehall. The council could have the freedom to decide where it spends millions of pounds, but only in line with its previously negotiated community strategy.
A spokeswoman for the ODPM said the authority had been chosen for its strong corporate capacity. 'They are already making progress on integrating children's services and exploring the pooling of budgets, and have successfully piloted the single education plan,' she added.
The LGA, the ODPM and the pilots are expected to negotiate what will be included in the pots by November. They will have to agree on mandatory funding streams and then possible ones, which can be negotiated by each area. So far, the only two initiatives likely to be included are the Neighbourhood Renewal Fund for deprived areas, and the Safer, Stronger Communities Fund.
'The agreements have been partly designed to keep the departments on board,' said Simon Edwards, LGA policy officer. 'All is still to play for in the extent departments are willing to go. We need to ensure that we get maximum engagement and involvement from all the departments.'
The Department for Environment, Food and Rural Affairs is due to launch eight rural pathfinders shortly. These will work in a similar way to the LAAs, although the department said councils will not necessarily lead them. 'This will be determined locally,' a spokeswoman added.
Pilots for Local Area Agreements:
Barnsley
Bradford
Brighton & Hove
Coventry
Derby
Derbyshire
Devon
Doncaster
Dorset
Gateshead
Greenwich
Hammersmith & Fulham
Kent
Knowsley
Peterbrough
Sheffield
Stockton-on-Tees
Suffolk
Telford & Wrekin
Wolverhampton
Wigan
PFoct2004
