Finding value

Shared services iStock 000007489708XSmallAnna Sweeney and Jessica Cumming examine a recent briefing note on Best Value Guidance and the Compact issued by the DCLG and Compact Voice.

The Best Value Guidance and the Compact – Briefing Note has recently been published by Compact Voice and the Department for Communities and Local Government. The note provides practical advice on how the Compact and Best Value Statutory Guidance can be best used to ensure effective partnerships between local authorities, community and voluntary groups and small businesses.  

Background

The Compact is the agreement between central government and the voluntary and community sector (often referred to as civil society). It sets out commitments and expectations about how these parties should work together in partnership for the benefit of people and communities. The Compact is built on trust and mutual goodwill rather than being legally binding. 

As well as the national Compact, most areas in England also have a local Compact with the same basic principles as the national Compact.

Best Value Authorities are required to have regard to the Best Value Guidance, the latest version of which came out in September 2011.

The Best Value Guidance and the Compact Briefing Note sets out how the Best Value Guidance should be used and how the Compact fits in with this. The national Compact contains a number of undertakings which expand on or complement those in the Best Value Guidance including:

  • Assess the impact on beneficiaries, service users and volunteers before deciding to reduce or end funding. Assess the need to re-allocate funds to another organisation serving the same group.
  • Where there are restrictions or changes to future resources, discuss with civil society organisations the potential implications as early as possible, give organisations the opportunity to respond, and consider the response fully, respecting sector expertise, before making a final decision.
  • Give a minimum of three months' notice in writing when changing or ending a funding relationship or other support, apart from in exceptional circumstances, and provide a clear rationale for why the decision has been taken.

The legal position

Legally, local authorities must have regard to the Best Value Guidance when making funding decisions relating to the provision of services, although it is not a legal requirement to follow the steps set out in the guidance. Local authorities must be aware of the ramifications of not having regard to the Best Value Guidance in decisions they make. Any disgruntled voluntary or community group or organisation has the right to request that a local authority provides evidence that they have considered the guidance. Such evidence may include justifying how a decision has been reached, or how consideration was given to the guidance in reaching its decision. As a last resort the Secretary of State may intervene where the evidence indicates that the local authority failed in its best value duty.    

The Best Value Guidance stipulates that local authorities must honour the commitments set out within local Compacts. Therefore although not legally binding, local authorities are expected to comply with the principles contained within local Compacts. By doing so, this can often assist local authorities in complying with their statutory requirements such as the Duty to Consult under section 3(2) of the Local Government Act 1999 and duties under the Equalities Act 2010 at the same time helping to avoid challenges. By following both the Best Value Guidance and the national and local Compacts, this can improve and encourage relationships with different organisations and voluntary groups, help deliver better services and lead to the provision of services that better reflect and meet the need of local communities.

Further information and guidance

The Best Value Guidance and the Compact – Briefing Note can be found here

Case studies and further information can be found at Compact Voice's website: www.compactvoice.org.uk

The Best Value Statutory Guidance can be found here

The full text of the national Compact is at: http://www.compactvoice.org.uk/sites/default/files/the_compact.pdf

Anna Sweeney is a Professional Support Lawyer and Jessica Cumming is a Solicitor at Walker Morris. Both regularly contribute articles and updates to reach.... ®, the free Walker Morris knowledge database and alerter service.