Local Government White Paper
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The Department of Communities and Local Government (DCLG) published the Local Government White Paper on the 26th of October 2006. The paper sets out the Government’s plans to transfer more powers and resources to local authorities and their communities. Legislation to implement these changes will be published after the Lyons enquiry (due to report in December 2006) into local government funding and the Government’s Comprehensive Spending Review 2007.
The Local Government White Paper was published as a response to growing criticism of increasing central government control over local government. There have been calls for ‘double devolution’ – the transfer of power from central government to local authorities. The White Paper is a weaker version of ‘double devolution’ as the increased powers contained in the paper will not automatically be transferred to neighbourhood management.
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The White Paper includes a chapter on the third sector which includes the voluntary and community sector (VCS). The chapter recognizes the diversity of the sector and the different roles is plays in ‘shaping and designing effective services, representation and advocacy lobbying and influencing policy’.
The 5 main issues in the White Paper that affect the voluntary and community sector are:
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Legislation to be introduced will place a new duty on local authorities and other authorities such as the Greater London Authority and the London Development Agency to ensure that they include the participation of local people, the voluntary and community sector and local businesses in the delivery of their work. However, the paper qualifies this by adding this should be done ‘where appropriate’ thereby diluting the duty.
The paper provides for local councillors to act as advocates for their communities by initiating a new ‘Community Call for Action’ on issues of local concern to promote greater accountability to local people.
The White Paper encourages community ownership and management of assets and proposes a government fund for local authorities to refurbish buildings which can be transferred to communities to manage or own. The paper also encourages community groups to take over the delivery of local services.
Neighbourhood management is ‘encouraged and enabled’ in the White Paper but there is no legislation to ensure that this is implemented nor is there any additional funding identified to enable this.
Despite the Government stating a commitment to community involvement and participation at a local level, this White Paper does not state how local authorities are to fulfil their duty to engage local communities or the local community and voluntary sector but merely promotes ‘local flexibility’.
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Increased role for Local Area Agreements (LAAs)
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Local Area Agreements (LAAs) include set targets for a local area which are agreed between the Government and the area’s Local Strategic Partnership (LSP). The White Paper expands current LAAs as well as introducing new legal duties for:
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Local authorities to prepare LAAs in consultation with others, including the expectation that local community and voluntary groups will be involved
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Local authorities and other named partners which does not include the voluntary and community sector to co-operate with each other
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All partners to have regard for LAA targets
Local authorities must also ensure a more co-ordinated and streamlined community engagement for the Sustainable Community Strategy, LAA and Local Development Framework (the spatial planning framework for an area) as this they envisage will ensure communities not being ‘over consulted’. There will also be new Multi Area Agreements which will expand the scope of LAAs to sub regions.
There will be increased central government funding for LAAs which will not be ring-fenced to the four funding blocks of Children and Young People, Healthier Communities and Older People, Economic Development and Enterprise which will now become Economic Development and Environment and lastly Community Safety.
The aim if these changes is to strengthen the role of LSP’s to encourage partnership working and increased involvement of VCS in the decision making process in their local areas.
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Increased Sustainable Funding for the Third Sector
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The White Paper recognises the need for better and more sustainable funding for the Third Sector with an acknowledgement that grant funding is often the most appropriate method of funding small community groups to build their capacity.
There is a commitment to a minimum of three years funding for the Voluntary and community sector except where such funding will not be ‘best value’.
The White Paper also calls for more partnership involvement in commissioning which they say will allow for the voluntary and community sector to be involved in needs assessment and the setting of priorities.
Procurement from the third sector will be considered in the assessment of a local authority’s performance by the Audit Commission. This it is envisaged will provide an incentive for local authorities to follow central government guidance.
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There are a number of proposed changes at devolving power from central government to local authorities in the White Paper. And these include:
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Encouraging a greater diversity of local councillors;
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Removing the requirement for councils to get government consent for by-laws and giving local authorities the power to enforce by-laws through fixed penalty notices rather that through the legal system;
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Providing legislation for three models of management arrangements for local authorities to provide greater leadership. There will be in each local authority for a term of four years, a directly elected mayor. A directly elected executive or an indirectly elected leader;
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Strengthening and widening local authority powers of overview and scrutiny to provide more accountability for the leaders of the council
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A reduction in the number of outcome measures for local authorities from over a thousand to two hundred as well as limiting LAA targets to a maximum of thirty five
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Replacing the annual Comprehensive Performance Assessment, Joint Area reviews, Annual Performance Assessment and Social Services star ratings with one Comprehensive Area Assessment.
The White Paper also includes a number of proposals to establish mechanisms to strengthen neighbourhood activity. These include:
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Community cohesion will be included in the new performance frameworks for local authorities and also reflected in the LAA in ‘those areas where this is an issue’. The White paper states that local authorities should work with partners ‘particularly the third sector’ around this issue.
The paper specifically mentions London, as it had one of the largest increases in the BAME population between 1991 and the 2001 census.
It is therefore likely that most London councils will have community cohesion as part of their performance assessment and there will be targets on community cohesion in their LAAs.
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The recognition that the voluntary and community sector have a strong and clear role to play in local governance, service design and delivery as well as ensuring accountability is welcome.
However, it is crucial that the strong language of devolution and empowerment is not watered down.
Central and local government must recognise that capacity building is needed not just within communities to ensure they have the skills and resources to participate, but that it is also needed within the public sector to ensure they can provide community leadership and empowerment. Without sufficient skills in community engagement, advocacy coupled with a solid understanding of how to harness the potential of local community groups, there is a real risk of devolution stopping at the door of the local authority.
The Local Government White Paper offers significant opportunities for local partners from all sectors and local people to determine local priorities, improve services and the local environment.
BNRRN will work with its member organisations to ensure that the proposals contained in the White Paper reflect the experience and aspirations of our members operating at a local level.
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