05 May 2006
The chair of the Lyons Inquiry into Local Government says that there is now a consensus in favour of more decentralisation. But councils will have to raise their game to improve transparency and trust
It's time for change. The debate on local government reform has a long and complex history. We need to accept that there is no single definitive solution. We cannot be in the game of producing a blueprint solution for every area - the answer will vary from place to place and it is about getting the whole system of governance right so that variation and choice work in the best way possible for local people in every area.
It is in the national interest to clarify what central government and local government should be responsible for, and what they are best placed to achieve to rebuild confidence in the whole system of government.
Over the past few decades, changes in England have led to it becoming the most centralised country in the western world. We need to ask if this is right. Does it offer the most effective system to promote national prosperity? National standards have achieved some compelling results and real improvements in services. However, they are not the whole answer. We need greater recognition that the right pattern of services should vary between areas.
I would argue that it is increasingly important to balance carefully the legitimate wish to improve services across the board against the need to avoid raising expectations across the country as a whole in a way that cannot be delivered or afforded. Poor performance should always be tackled. However, the same solution is not always appropriate or necessary everywhere.
I believe we are approaching a tipping point towards a consensus in favour of a more devolved future. There is now wide recognition of the need for increased decentralisation, which will lead to more local choice and more local variation. Reform should focus on finding ways to ensure that this happens in a way that maximises prosperity, satisfaction and choice for local people and the nation as a whole.
In my reflections on the round table discussion 'Beyond Lyons', hosted by Public Finance, I identified four key barriers to the achievement of a more devolved and appropriately varied future.
The first is a lack of confidence in the system; an increase in people's trust in local and central government is essential. The present tendency for local and central government to blame each other when difficult decisions have to be made can have a damaging effect on confidence and trust in local government and in the system as a whole. A rebuilding of trust needs to be a shared aim of central and local government. Building public trust more effectively at a local level will have benefits for trust in national government as well as in local authorities.
Secondly, we are living in a world of finite resources, where expectations are high and rising and there are growing pressures on services. It is increasingly important to find a way to manage pressures on services more effectively. Greater local choice to make limited resources meet local needs and priorities must play a part in this.
Thirdly, it is important to eliminate the barrier that prevents local government from making effective local choices. We have a problem in this country of being preoccupied with a postcode lottery. We need to look to a future that allows for more local variation as the best way to deal with upcoming problems and pressures. We need to see this as postcode power, which varies according to local circumstances and priorities, not as a postcode lottery resulting from failure to deliver.
Finally, local government needs to raise its game to become effective not just for today but for the future. It's essential that local government builds on recent significant improvements, driving efficiency and value for money and improving its engagement with local citizens.
This will ensure that councils are able to make the right choices, and improve transparency and trust in the system.
The round table discussion generated agreement on change in these four areas. However, there was some controversy over how much of the change could be undertaken in one go. I am sure of one thing:
local government reform, requiring change throughout the whole system, is a difficult and complex job. It cannot be done overnight. We need to take an evolutionary approach to achieve real, sustainable change.
If we get it right, increased devolution will provide a more efficient system, better meeting the needs of local people and the nation as a whole. If central and local government successfully work together in partnership with clear agreement over their respective roles, we will promote trust in the institutions themselves and the system as a whole.
Sir Michael Lyons is leading the Lyons Inquiry into Local Government. The issues discussed in this article will be tackled in greater detail in a paper to be published on May 8.
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