A report published by the Commons communities and local government committee called on central government to give Community Budgets a clear commitment.
Committee chair Clive Betts said that, while it was right to test the policy with pilots, Community Budgets were becoming bogged down in the testing process.
‘The government must send the clear message to every local authority, whether they are part of a pilot or not, that they will be supported if they wish to introduce Community Budgets,’ he said.
‘Strong local leadership and a clear commitment from central government are now needed. Otherwise this potential won’t be realised and Community Budgets run the risk of being consigned to the scrap heap of forgotten-about shiny new ideas.’
The committee gave a ringing endorsement to the concept of Community Budgets, saying they had the potential to break the culture of ‘petty barriers’ between public services. They also offered a ‘vital lifeline’ to local authorities grappling with increasing demand for services and reducing budgets.
Betts added there was a need for better data demonstrating the value of Community Budgets to both the Treasury and local partners.
‘Given that a significant proportion of the savings from Community Budgets are likely to accrue to central government, it is right that is should invest upfront in their development,’ said Betts.
‘This should include providing central government secondees and responding constructively to requests from local authorities for pump priming funding.’
CIPFA chief executive Rob Whiteman echoed the committee’s call for a clear commitment to Community Budgets from Whitehall.
‘As the committee notes, there are real problems with the way funding exists in silos for different services and this risks the future effectiveness of Community Budgets,’ he said.
‘CIPFA believes that the public should understand how public money is spent in their area through consistent reporting standards, so that they can hold public bodies to account.’
The original four ‘whole place’ Community Budget pilots – Cheshire West & Chester council; the Greater Manchester combined authority; the west London tri-borough project; and Essex – developed plans to pool spending and reform services with civil servants. Another 18 councils have now been chosen by government to develop similar schemes.
