By Jaimie Kaffash
24 August 2010
The government is ‘very receptive’ to the idea of introducing ‘foundation councils’ that have greater financial freedoms and are exempt from regulatory burdens, a leading Conservative councillor has told Public Finance.
Colin Barrow, leader of Westminster City Council, has called for the
best performing councils to be given foundation status. Writing on the ConservativeHomewebsite, he said that these councils should be given new powers, including: full freedoms to trade and share services: freedoms from centrally
imposed inspection regimes such as Ofsted and the Care Quality Commission; and
the ability to set variable business rates and introduce bye-laws.
Barrow told PF that ministers had been ‘very receptive’ to the idea, which had been developed by his own council and the London boroughs of Hammersmith & Fulham and Wandsworth. He said: ‘They have asked “what do you want us to do?” Not in the sense of applying for a grant, that would be the old game, more in the sense of “if we gave you the powers, what would you be able to do?”’
Barrow hoped the concept would form part of the Decentralisation and Localism Bill, introduced in the coalition’s first Queen’s Speech in May and aimed at devolving greater powers to councils. ‘We have made various suggestions, many of which were taken on board before the election,’ he added.
But Richard Kemp, leader of the LocalGovernment Association Liberal Democrats group, told PF that he ‘didn’t believe in’ foundation councils and there was ‘no rationale why some councils will not qualify’. ‘I think every council should be given the sort of freedom that is suggested here. That is the LGA view and the LibDem view,’ he said.
Kemp added that only exceptionally poor councils would be likely not to benefit from the powers. ‘I can only think of one council in the entire country – Doncaster – that I would not want to have the same freedoms. But even that council is moving in the right direction. The time when 100 out of 400 councils were dodgy is well past.’
Barrow said foundation status should be given to the top-performing councils as soon as possible, to avoid Whitehall red tape hampering reform. ‘It is far better they decide to give the [powers] to grown-up London boroughs and big metropolitans and not go at the pace of the slowest [councils]. But if they wish to give these powers to everybody, I for one would not cry,’ he said.
James Hulme, director of communications at the New LocalGovernment Network, welcomed the idea of foundation councils, but warned that it would be hard to assess ‘a good performing council objectively’.
He said: ‘With the demise of the Comprehensive Area Assessment and cutting back on the inspection regime, there is quite a persuasive argument that you should give the best performing councils additional powers. But it will be hard to judge which councils are performing well without creating a CAA part two.’
