12 April 2002
The plan, published by Local Government Secretary Stephen Byers on April 10, contained few revelations and disappointed local authorities.
On the new performance management framework, the 'big idea' of the white paper, the first assessment of all 149 upper-tier authorities will be completed by November this year. This will classify the authorities as either high performing, striving, coasting or poor performing.
Significantly, high performers have been promised financial freedoms such as the removal of capping, ostensibly allowing them to set their own council tax levels. But these will not be introduced until 2003/04.
In contrast, the new intervention regime for poor performers, which Byers has already stated will include hiving off failing services to the private sector, will be in place by July.
A local government source said the intervention regime, already used in several local authorities, was being pushed through – consultation begins in May – because ministers expected to identify several poor performers.
Neil Kinghan, director of the economic and environmental division at the Local Government Association, described the performance timetable as 'demanding', adding that it was important that the information used was as robust as possible.
He voiced disappointment on the plan's vagueness on contentious issues such as ringfencing and a review of the balance between central and local government funding. It simply promises to announce 'further details' and to publish a paper on ringfencing levels after the Spending Review.
Kinghan said the LGA would be lobbying for ringfencing to be bought down from 14.5% of all revenue funding to the 1997 level of 4.5%.
A revised 'circular' on Best Value and labour force issues, or the controversy over the two-tier workforce as it is more commonly known, is due to be published in July.
But the plan fails to give any timetable on legislative changes such as the prudential regime for capital borrowing. A spokesman for the Department for Transport, Local Government and the Regions said ministers couldn't pre-empt the Queen's Speech, nor were they clear whether there would be one Act to encompass all the various elements.
The plan was viewed by some in local government this week as a ploy to keep both local authorities and unions onside. Byers had apparently promised to publish a robust timetable to ensure some progress was being made.
Launching the plan, Byers said: 'This demonstrates the top priority the government is giving to delivering improved public services and local government's key role in achieving this.'
PFapr2002
