Political leadership will be critical to the survival of many local authorities in 2014. Some council leaders are demonstrating good leadership at this difficult time, but too often this is not the case
Here’s an all too easy and straightforward prediction: 2014 will not be a comfortable or easy year for local government and its partners in the public, and voluntary and community sectors.
Sadly, this statement echoes ones made annually for the past few years as recession, austerity and public expenditure and benefit cuts have continued to bite – with still more cuts to come in 2014 and 2015, and with every prospect of further cuts in future years especially if George Osborne has his way.
I do, however, believe that 2014 could be a pivotal year for local government and its partners.
The case for well-resourced localism will have to be made time and time again. Local government collectively and individually, local authority by local authority, has to argue the case for greater levels of resources and fewer cuts in central government financial support. It has to demonstrate the social, economic and environmental harm being wreaked by the current and planned scale of cuts.
This requires local authorities to measure the impact of their and other public sector cuts; and of the government’s ‘welfare reforms’. Hard evidence supported by anecdotal stories can be very powerful – although perhaps not always powerful enough to shift current government policy.
Local government also has an opportunity to demonstrate the benefits of greater local control over the deployment of public expenditure in a place. It has to make the case for building on Total Place and Community Budgets. And it has to seek to persuade the government and other national parties to commit to such an approach on a comprehensive scale.
The Local Government Association and others have to make the case for no more cuts to local government expenditure or to central government grant, and for greater local control of total public expenditure and local taxation.
However, without waiting for central government to give them licence or grant it new powers to pursue such approaches, local authorities can act now. They can use their existing powers, including the general power of competence, and leverage their political power secured through the ballot box to step up to the plate as community leaders and place shapers.
Some (though all too few) local authorities are already doing this. They are using their influence, powers of persuasion and political capital to drive change through effective outcome-focused collaboration with the wider public sector. They are aligning, pooling and co-ordinating budgets and budget strategy with their public sector partners.
Those local authorities that are not doing this should seriously consider doing so in 2014. It will require bold political and executive leadership that places the interests of the communities and the place above institutional or personal considerations.
In a similar vein, local authorities should consider how they can work more effectively with the local voluntary and community sector, as well as local businesses. The total resources available in a place include those in these sectors. They can and do make a major contribution to community social and economic well-being.
Local authorities have to understand that initiatives to work with the voluntary and community sector must be based on collaboration and not directives. The independence of the voluntary and community sector has to be respected and maintained.
An increasing number of local authorities are seeking to develop new relations with local citizens, both as individuals and as members of communities. Co-design and co-production of services are increasingly being seen as critical to both the effective management of ever-scarce financial resources and to securing better outcomes.
Others speak of ‘demand management’ – if this means long prevention or securing outcomes differently then fine, but I am yet to be convinced that euphemisms should be used to disguise cuts and rationing.
Local authorities should not attempt to offload their responsibilities on to communities, citizens or the voluntary and community sector without consent and agreement, or without adequate being resources available.
The approaches described above, plus the pursuit of efficiencies and service and process redesign within councils, are essential as part of local government’s response to its financial challenges, but they are almost certainly going to be insufficient. ‘Salami slicing’ should never have even been considered by any strategic organisation.
Local authorities are going to be forced to stop doing some things and doing some things in very different ways. Consequently, there are some hard political choices to be made. There will be more misery and pain. These should be political and values-based not technical or administrative choices. Political leaders have to be accountable for them.
In 2014, political leadership is going to be critical to the survival of many local authorities; and to local government collectively. Some local authority political leaders have recognised this and are demonstrating good leadership but in my experience this is too often not the case.
Excellent local public leadership has to be strategic and focused. Leaders have to be values-driven, and all decisions that are taken should be shaped by political values and policy commitments. They have to ensure that before significant decisions are made, a short- and long-term impact assessment is made including identifying:
- the short- and long-term social, economic, financial and environmental impact of a proposed decision including budget cuts
- the potential implications for other public sector agencies, and for the local voluntary and community sector and local businesses
- how the decision complies with and contributes or does not contribute to pre-agreed objectives and political values
Leaders also have to measure the impact after the decisions are implemented, including the public’s perception of the impact and make the findings available in an accessible form.
Local government political leaders have to be honest and open with the public. They have to offer hope and as much protection as they can. They must communicate well, explain their decisions, as well as the expected and actual impact of these decisions - and ultimately be accountable for them. They have to:
- be values-driven at all times
- be place shapers and community leaders focused on outcomes
- be visible when making hard decisions and when the results of these decisions become apparent – and not hide behind officers
- ensure that they have the best possible advice, information and evidence on which to base decisions
- introduce external independent ‘critical friends’ to offer challenge and new ideas
- share with all stakeholders the financial realities, expenditure, tax options and assessments of these options
- consult and involve citizens, the local voluntary and community sector, local businesses, and staff and trade unions in decision making
- explain why hard choices and unpopular cuts are having to be made
- collaborate with others across the sectors and be ready to share and let go of resources for the greater good
- campaign for a change in national policy
Local government and the communities it serves face major challenges in 2014. At the start of the year, there is an opportunity, albeit a very brief one, for local government leaders to reflect on what has happened so far, to adopt the appropriate strategic approaches.
They must ensure that they are adopting the leadership behaviours necessary to face the challenges with confidence and to do what is best for local people. Dented shields are better than no shield.
