08 February 2002
But this, one of the first big projects to be undertaken by the former director of Best Value at the Audit Commission, will pit her against some of the big beasts in the Whitehall jungle. Prime Minister Tony Blair may need to intercede between his principal adviser on the public sector and Education Secretary Estelle Morris, or Health Secretary Alan Milburn.
Thomson's review is being undertaken jointly with Sir Richard Mottram, permanent secretary at the Department for Transport, Local Government and Regions, and is due to be completed by the end of March.
It goes beyond what was promised in the white paper, published in December, which spoke of a 'need to ensure the necessary co-ordination capacity within and between departments, the inspectors and the agencies which support the modernisation of local government'.
At issue now is the willingness of the big spending departments – education, health and the Home Office – to give councils more financial and managerial freedom.
Matthew Warburton of the Local Government Association said: 'Our anxiety is that government will find it difficult to speak with one tongue on this subject', although he added that Thomson's review was welcome as evidence the government was taking the deregulation agenda seriously.
His misgivings are well placed. The official summary of the Education Bill, which is now passing from the Commons to the Lords, talks of 'pressure on local authorities to pass on increases in schools' funding'. The Bill gives the education secretary reserve powers to require councils to set a minimum budget for schools.
David Hart, general secretary of the National Association of Head Teachers, said such pressure was necessary and spoke of Whitehall making gestures that amounted to stroking the fevered brows of local education authorities.
PFfeb2002
