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Government mulls new select committee to assess impact of Whitehall on local authorities

A new joint parliamentary select committee tasked with examining how the work of central government impacts on the ability of local government to fulfil its role moved a step closer this week.

In its response to its Strengthening Local Democracy consultation, the Department for Communities and Local Government said it considers “there is merit, given the favourable local support, in exploring further, with the House Authorities,” the establishment of such a committee.

Elsewhere in the response, Communities Secretary John Denham insisted that the government had put in place ambitious reforms to enable councils to “further protect and improve public services in a tighter financial climate, by extending their influence over all local spending in the area”.

He pointed to government measures including:

  • Greater scrutiny powers, with the government recently backing a new Private Members’ Bill strengthening councils’ ability to scrutinise local public services
  • Further work in relation to Total Place, including the Putting the Frontline First: Smarter Government White Paper published in December
  • Local carbon frameworks, which are being tested in nine areas over the next 12 months
  • The urgent introduction of powers for local authorities to participate in mutual insurance companies after the London Authorities Mutual Limited case. “In addition the earliest legislative opportunity will be sought to further develop the framework of local authority powers to ensure that councils can deliver other efficiency and cost savings measures”
  • The power to set up joint scrutiny committees and the advent of sub-regional working arrangements under the Local Democracy, Economic Development and Construction Act 2009.

Denham said: “In a tighter financial climate these steps will enable councils to act on behalf of local residents to meet the challenge of delivering better public services, offering better value for money for the taxpayer’s pound and making those services more transparent and open to scrutiny.”