08 August 2003
The government stands accused of compromising the Audit Commission's independence after Public Finance was given a document revealing that ministers intend to force immediate penalties on authorities rated 'excellent' whose services slip.
Senior local government figures have reacted with anger at the contents of the commission's paper, which outlines how the watchdog intends to tackle authorities at the top of the Comprehensive Performance Assessment rankings whose service standards decline. The CPA results are due to be 'refreshed' from the end of 2003.
It indicates that the commission has overhauled its proposals in light of the results of consultations by Phil Hope, a junior minister at the Office of the Deputy Prime Minister, who wrote to his ministerial colleagues in June to gauge their opinions. The inspectorate is supposed to be independent and free from political interference.
'[The commission's] preference was for a system of warnings for councils before they were moved down from the excellent category following a reduction in service levels. However, they were also aware that there was not a consensus in government about this,' the document says.
'The view of the commission now is that it is prepared to consider revising this original approach – with immediate recategorisation happening where services fall below 2002 thresholds or where a rule is applied.'
The document says downgraded authorities will keep excellent councils' freedoms and flexibilities for an agreed period while they address their shortcomings.
One local government source, who asked not to be named, told PF: 'The commission were happy with the original approach, but the document makes clear that they could not get government consent.'
The source added: 'The Audit Commission is supposed to be an independent watchdog. This shows the extent to which they are bowing to the government's will.'
The paper was discussed on July 29 at a meeting of the local governmental performance management group, which brings together representatives from Whitehall departments, the commission and local government. It says the ODPM and the commission intend to publish 'co-ordinated' statements in early September outlining the detail of the new approach.
Sir Brian Briscoe, chief executive of the Local Government Association, said he was 'astonished' at the Audit Commission's sudden change of heart. 'I can only think they are under pressure from government departments that did not properly engage with the CPA process to start with, and did not realise that it would actually mean letting go.'
Briscoe said he 'guessed' the departments overseeing education and social services were likely to be involved. He added: 'If the government is leaning on the Audit Commission to recategorise councils then that is very unfortunate.'
A spokeswoman from the Office of the Deputy Prime Minister told PF: 'Government departments are stakeholders in the CPA process and it is entirely legitimate that government is engaged in the Audit Commission's consultation process. We strongly reject any suggestion that we have pressurised the Audit Commission.'
But a statement from the Audit Commission failed to address directly the issues raised by the leaked document.
It said: 'The commission is involved in ongoing discussions with government stakeholders about what should happen to "excellent" councils where evidence of service or corporate failure is such that this category may no longer be justified.'
PFaug2003
