By Jaimie Kaffash
26 August 2010
The Local Government Association could be put in charge of all funding for improving council services under proposals announced by local government minister Bob Neill.
Ring-fenced funding is currently given directly to nine organisations, including the LGA-led Local Government Employers and LocalGovernment Improvement and Development Agency, and several leadership training bodies. It is ‘top-sliced’ from the Revenue Support Grant, which is currently given to councils each year. This totalled £45m in 2009/10.
The Department for Communities and Local Government proposed yesterday that the LGA take charge of this funding. It would then disperse the money as it sees fit, removing guarantees for the funding of any of the organisations.
Neill said: ‘Councils know best what they need to improve services and become more efficient.
‘By cutting the red tape around improvement funding, councils can push even harder to make sure they have the tools and expertise to be fully focused on delivering frontline services that matter to people most and getting the best value for taxpayers' money.’
Margaret Eaton, chair of the LGA, said: ‘This very welcome localism initiative will focus effort on the achievement of key national outcomes, save money and ensure that resources are used in the most effective way possible.’
But Mark Ravenhall, director of operations at the NationalInstitute of Adult Continuing Education, one of the ring-fenced organisations, told Public Finance that adult education support services should not lose funding.
He said: ‘In terms of adult education support, there is a concern that if this money wasn’t ring-fenced, the providers of adult education will not be supported in their work adequately.
‘We believe that adult education services need that level of support that the ring-fence provides.’
