23 November 2007
Star ratings could give way to a traffic-light system of inspection, it emerged this week as public service watchdogs set out proposals for a radical revamp of the local inspection regime.
For the first time, seven inspectorates have come together to design a joint new performance framework for local services. The Comprehensive Area Assessment aims to capture an annual snapshot of life in a particular locality and assess how well public service agencies are working together to meet jointly agreed local objectives.
It is set to replace the Comprehensive Performance Assessment in 2009.
But inspectors are asking how best their findings should be reported to the public. The CAA consultation paper, published on November 19, suggests ditching the overall star rating currently used, which has provided a clear and concise indicator of a council's performance.
Under the proposed changes, each of the four elements of the CAA regime would be treated and scored separately, with no single overall judgement formed.
But Audit Commission chief executive Steve Bundred insisted all options were open. 'We haven't take the decision [to drop star ratings] definitely yet. It's one issue we are consulting on. The consultation document sets out the pros and cons and different methods of reporting as we see them,' he said.
Bundred added that the new reporting system would need to be more sophisticated and differentiated than the current one, to accommodate the findings of the joint area risk assessment – the newest and most radical element of the new regime.
There is particular concern over how to score this element of the CAA, which will assess how well an area is progressing towards meeting its Local Area Agreement targets and other priorities.
The seven watchdogs involved in making the judgement maintain that placing a single score on the risk assessment would disguise particular strengths and weaknesses. The consultation document favours presenting the assessment in a narrative form, accompanied by a traffic-light system to flag up specific areas of concern or progress.
The CAA forms part of the effort to deliver a more streamlined performance framework for local services, as set out in last year's local government white paper.
In a joint statement, the chief executives and chief inspectors of the watchdogs involved said: 'By tailoring the assessment to local priorities, the new approach will lighten the overall administrative load of audited and inspected bodies… We want to ensure that the development of the CAA delivers a joined-up approach to the way our inspectorates work, looking across the different organisations and taking account of the things they want to achieve for their communities.'
Some familiar elements of the CPA will be retained. Performance against national indicators will continue to be measured and councils and their partners will be subject to a more streamlined 'use of resources' judgement. For the first time, this will take account of how well they are managing their natural resources as well as their money.
Local government leaders welcomed this move but said it must not add to the burden of regulation. David Shakespeare, chair of the Local Government Association's Improvement Board, said: 'The emphasis the commission wants to place on the use of natural resources is a very positive move, given that leadership on climate change is a central challenge for the sector.
'However, this must replace, not add to, the use of resources assessment, especially in the light of the massive improvements made by councils over the past few years.'
A separate consultation on the use of resources element was also published on November 19.
A 'direction of travel' assessment will continue to be made but will still apply only to councils and fire and rescue authorities and not to other public sector organisations involved in LAAs.
Healthcare Commission chief executive Anna Walker suggested there could be a role for direction of travel assessments for PCTs. 'We've not formally looked at doing that, but there are some issues we would like to explore,' she told Public Finance. She added that they could lead to less burdensome inspection in future.
A programme of 'action learning' for CAA will begin in December. Thurrock, Hampshire, Tees Valley and Barking & Dagenham councils have been selected to work with the Audit Commission on developing a draft methodology for all elements of the CAA.
Seven local public sector inspectorates
- Audit Commission
- Commission for Social Care Inspection
- Healthcare Commission
- Ofsted
- HM Inspectorate of Constabulary
- HM Inspectorate of Prisons
- HM Inspectorate of Probation
Four elements of CAA
- National indicator set: assess progress of councils and partners against national priorities
- Joint risk assessment: area-based assessment of prospects and quality of life
- Use of resources: (three themes) managing money, managing business, managing resources
- Direction of travel statement: councils, fire and rescue authorities only, a joint inspectorate judgement
PFnov2007
