Now is not the time for further local government reorganisations. Councils in two tier authorities need time and space to develop local forms of collaboration
It takes at least three years to deliver savings, costs money and harms performance in the short term, while eating up parliamentary time and burning political capital. No wonder national politicians are fighting shy of the local government reorganisation debate. Both Eric Pickles and Hilary Benn have recently taken the opportunity to make clear that a new government will not be in the business of top-down reorganisation. So where does the debate about two tier local government go next?
The truth is that the unitary debate is already being left behind in many parts of the country. In a world where counties are trying to collaborate with police, health and welfare agencies, the idea of a major structural upheaval over the next few years seems irrelevant at best and actively destructive at worst. Reorganisation might help close a significant fraction of the two tier spending gap, but it is a fraction that comes at the cost of taking everyone’s eye off the transformation ball.
And, as a new report from NLGN supported by PwC shows, there is a clear alternative on the table. Two tier areas like Suffolk and Cambridgeshire are trying to find new ways to redesign their services through collaboration.
Suffolk’s councils are among the most advanced in the country. They have created a business rate pool for the county, co-located their staff with those from other public services in Mildenhall and started an ambitious programme of integrating a very wide range of public services in Lowestoft. There are many other shires that can point to pockets of similarly advanced practice, and there is clear evidence emerging that collaboration can improve outcome and, in doing so, save money.
Ministers say they want this kind of collaborative practice to become the norm in two tier areas. But they have so far failed to back this up with practical policy tools. Let’s be clear: you cannot force collaboration through statute, but you can create conversations and turn up the pressure a little. The report recommends that the next government should back county combined authorities with a new duty to integrate their services, publishing an annual report showing how they are working together to maximise value for money.
But policy tools can only drive change if they are backed by changes in behaviour locally. We need to see two tier areas investing more time and effort in building strong relationships between their political and managerial leaders. Both tiers need to engage their partners in creating shared outcomes and evidence bases to support the process of change.
The truth is that local government is already restructuring. Many districts and some counties are integrating and sharing their services, while combined authorities and increasing integration of health and care will demand new approaches to governance and sovereignty. In this world, collaboration matters more than structures.
The unitary debate is not going away, but shelving it for the next few years will give councils the opportunity to define their own solutions and vision for local government as it goes through what will likely be the most turbulent period in its long history.
Simon Parker is director of the New Local Government Network and Michael Wallace is a director at PWC. Their report As tiers go by is available from the NLGN
