General power 'not enough' to encourage council innovation

2 Sep 10
The proposed General Power of Competence for councils will not on its own be enough to enable them to find innovative ways of saving money, a government advisor has told Public Finance
By David Williams

2 September 2010

The proposed General Power of Competence for councils will not on its own be enough to enable them to find innovative ways of saving money, a government advisor has told Public Finance.

Surrey County Council leader Andrew Povey said savings in social care spending were possible, but only with direct intervention from the Department for Work and Pensions.

Education Secretary Michael Gove appointed Povey to a children’s services advisory group last month. Povey also chairs the South East Strategic Leaders organisation.

In a letter to Chief Secretary to the Treasury Danny Alexander, he proposed saving ‘millions’ by only financially assessing elderly people once, and sharing the data between different parts of government.

Currently, there are separate but similar tests for benefit payments and social care services.

Povey suggested more savings could be made by simplifying benefit and care financing. At present, DWP benefit payments are handed on to other parts of the state to pay for social care.

‘We need to be more linked in with the DWP and I don’t see that the GPC would give that to us here,’ Povey told PF.

He said the department has become more interested in working with councils.

A New Local Government Network report added this week that the GPC must be accompanied by an abolition of the ultra vires principle, which limits councils’ ability to create new revenue streams.

Head of research Nigel Keohane said: ‘Local authorities need full discretion to save money and to develop income to safeguard frontline services.’

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