07 November 2003
The Audit Commission has confirmed that the best councils will lose their 'excellent' status under the Comprehensive Performance Assessments if their performance in future falls below 2002 thresholds.
In August, Public Finance reported that the commission was likely to give in to government pressure and take a firmer line with councils whose performance was slipping.
The commission had planned to issue warnings before excellent authorities were moved down a category, but ministers resisted this – a move that raised questions about the inspectorate's independence.
But announcing the commission's decision on November 5, chair James Strachan said the whole point of the CPA was to drive forward improvements. 'It is right that councils should not retain the "excellent" label if they have fallen below standard,' he said. Strachan added that high-performing councils should be able to correct their own problems. No corporate assessment would be needed to reinstate a council with the excellent rating.
The Local Government Association expressed dismay at the decision. An LGA spokeswoman told Public Finance: 'We are disappointed that the government is proceeding with the proposals to downgrade excellent councils in these circumstances, rather than giving them an opportunity to tackle whatever the problem is.
'The characteristics the Audit Commission attributes to excellent councils includes the ability to identify areas of weakness and put them right. The government appears to be ignoring that.'
The Office of the Deputy Prime Minister confirmed that excellent councils would retain their freedoms and flexibilities if they were recategorised as 'good', unless they were guilty of critical failings at either service or corporate level.
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