The Local Government and Public Involvement in Health Bill and the Local Government White Paper

Damien Welfare

2-3 Gray’s Inn Square

Introduction

• White Paper, “Strong and Prosperous Communities”, 26 Oct 2006

• “Local Government is a vital part of our democracy”: Tony Blair

• White Paper is about: “a rebalancing of the relationship between central government, local government and local people”: Ruth Kelly

LG and PIH Bill

• Part 1: Structural and Boundary Change

• Part 2: Elections

• Part 3: Executive arrangements

• Part 4: parishes

• Part 5: co-operation with partners (LAAs)

• Part 6: byelaws

• Part 7: Best Value

LG and PIH Bill (cont)

• Part 8: Local services: inspection & audit

• Part 9: ethical standards

• Part 10: Valuation Tribunal for England

• Part 11: Patient and public involvement in Health and social care

• Part 12: Powers of NAW

• Parts 13 and 14: Misc and Final Provisions

Timetable of Bill

• Second Reading (Commons), 22 Jan 2007

• Public Bill Committee Evidence sessions (first Bill to go through this procedure) commenced 30th January 2007

• Committee to be concluded 8th March 2007

• Report and Third Reading (Commons)

• Lords stages

Main areas for this presentation

1. Stronger executive powers/three models (Part 3)

2. Community Call for Action (Part 5, Clause 92)

3. Reductions in Performance Indicators (Part 7, Clause 107)

4. Unitary Status (Part 1, Clauses 2-4)

1. Stronger executive (Background)

• 12 directly-elected Mayors

• 318 (four out of five) authorities have Leader and Cabinet

• Remainder: reformed Committee system

• Most Leaders face annual election

• Research shows leadership is single most important driver of change (WP)

Stronger Executive powers/three models

• All Executive powers to be vested in Mayor/Leader

• Three choices of leadership model:

a) directly elected Mayor

b) directly elected Executive

c) Leader elected by fellow Councillors• All models to have four year mandate • NB: all-party demands in Commons for

discretion to return to Committee model

Stronger executive (rationale)

• Greater powers to be balanced by clearer accountability (WP, 1.18)

• Council to have strong role in scrutinising Leaders’ actions, approving budget, approving major plans

Delegation/appointments

• Mayor/Leader will discharge powers, or delegate individually/collectively to Cabinet

• Mayor/Leader will appoint Cabinet

• Or if directly-elected Executive, will have agreed those persons are on his/her slate of candidates for election

• Mayor/Leader will allocate portfolios

• 318 LAs: new executive arrangements

Four-year terms

• Mayors unaffected (save Stoke: mayor and council manager; to move to new system)

• D/e executive: four years in all circumstances

• Leader: authorities decide how Leader can be removed during term

• If council elects by thirds or halves, Leader stands down when term as councillor ends

Moving to new models

• Moving to d/e Mayor or executive: no requirement for referendum: Council resolution after wide consultation.

• Local people can still petition for Mayor

• Presumption of no moving back once directly elected models adopted.

Whole council elections

• Turnout remains below 40% (inc mayors), but higher in all-out elections

• Local authority may move to whole council elections and single-member wards, without SofS permission

• Single member wards: LA may ask Electoral Commission to review, to which Commission required to have regard in planning programme

Stronger executives – key clauses

• Clause 32: changing scheme for elections• Clause 39: executive arrangements,

amends s 11, LGA 2000• Clauses 44-48: directly- elected

executives and slates• Clause 44: by-elections if slate elected• Clauses 47/48: supplementary vote

system for executives• Clause 49: Leader and Cabinet executives

2. Community Call for Action

• “When things go wrong local councillors, supported by their communities, will be able to demand an answer to their questions”: Ruth Kelly (WP)

• Parallels remedy in Police and Justice Act for crime and disorder

• Does not cover areas where statutory appeals process (eg planning, licensing, non-domestic rates)

CCfA (cont)

• Not intended to displace informal approaches, nor internal negotiation

• Any cllr able to refer any “local government matter” to relevant O&S Committee

• LGM = relates to discharge of functions, affects electoral area of member (or person who lives or works there), and not an excluded matter (crime and disorder, or specified in order by SofS) – s 92(10)-(11)

Response to CCfA

• Power to make regulations as to information which relevant partner authority must provide to O&S cttee

• Insofar as actions relate to functions or service delivery connected with the authority (WP)

• Council to respond to O&S report within 2 months

Response to CCfA (cont)

• Duty on relevant partner authority to have regard to recommendations when exercising functions, in relation to local improvement target in LAA

Scrutiny – other changes

• Encouragement to create area O&S cttees

• And to focus O&S at council level on “strategic” issues (eg LAA priorities) and policy advice (WP)

• Encouragement for councillors to have small budgets to deal with local problems (WP and clause 166)

CCfA – key clauses

• Clause 92: CCfA (new s 21A, LGA 2000)

• Clause 94: power of O&S Cttee to require information from partner authorities

• Clause 95: requirement on authority to respond within 2 months to O&S report

• Also: clause 166: exercise of functions by local councillors

3. Reductions in performance indicators

• Allowing “freedom and space” for councils to respond flexibly to local needs (WP)

• “radical” reduction in national targets, and tailoring others to local needs. Lighter touch inspection system.

• Revision to Best Value duty

Performance indicators (cont)

• Three-tier system: • a) Sustainable Communities Strategy

(overarching vision)• b) local development framework (physical

development)• c) Local area agreement (priorities for

improvement. Govt sees as heart of central/local relationship). “New partnership locally” and “mature conversation” with Govt

Performance indicators (cont)

• Single set of c 200 national outcome-based indicators against which all partners report (developed from national priority outcomes)

• About 35 local targets/priorities for improvement: some non-negotiable or floor targets

• plus c 18 DES statutory childcare and education attainment targets

• Plus any additional targets agreed by LAA (not reported upwards)

• Youth Justice Bd (YOTs) and other inspection regimes (eg PCTs, police) to be aligned

Performance indicators (cont)

• Duty to prepare annual Best Value performance plans and conduct reviews ended

• Duty to take steps to secure participation of local people in shaping services

Inspection

• More proportionate, risk-based inspection

• Annual risk assessment; scored use of resources judgement; direction of travel judgement.

• Comprehensive Area Assessment

Performance indicators – key clauses

• Clause 106: involvement of local representatives

• Clause 107: abolition of performance indicators – not Wales

• Clause 108 – abolition of best value performance reviews

4. Unitary status

• Permissive approach (WP) to restructuring in county areas: councils in those areas able to seek unitary status

• Strict criteria, inc enhancing strategic leadership, broad cross-section of support, costs from existing resources

• Small number expected (rumoured 8); 26 received

Unitary status (cont)

• WP: preliminary decisions end March 07; final decisions by early July 07

• Second Reading (Kelly): expect only small number to meet strict criteria

• Clause 2(1): power to invite or direct authority to restructure: included to deal with detrimental effects on an area of other restructuring; will be amended by Govt to clarify (Hansard, 22 Jan 2007: col 1246)

Unified service delivery

• Collaboration in two-tier areas (LAs and other public bodies): pathfinders

• Govt sees as essential to secure more effective working arrangements (eg common employees or councillors)

• Section 101, LGA 1972. Possible amendments to governance and accountability rules (WP)

• Evaluation of pathfinders over 2,4, 6 years• Corresponding evaluation of new unitaries

Unitaries – key clauses

• Clause 2: invitations or directions to restructure

• Clauses 4, 7: consultation and implementation by Order

• Clause 11: content of orders

Bill –other changes

• Clause 56: extension of well-being power to eligible parishes

• Clause 97: alternative procedure for bye-laws

• Clause 122: Audit Commission not to carry out consultancy studies

• Part 10: Valuation Tribunal for England• NB: main provisions of Bill apply to

England only

Conclusions

• Possible controversy during Bill’s passage over fourth option (committees) and direction to restructure

• Parliamentary concerns over scope of scrutiny provisions

• Significant potential improvements in local discretion

• Importance of community call for action to role of backbench councillors