Budget report introduces new 'single offer' powers for authorities and extends 'Total Place' nationwide
The government has announced the expansion of the Total Place concept nationwide and promised to give greater powers to the most efficient local authorities as part of the efforts to save £11bn in public spending announced on the Budget.
According to the plans, from April 2011 local authorities with “a strong track record” of efficient working will be able to negotiate with central government for more freedoms under a “single offer”. Examples cited include the removal of some or all local authority funding ringfences (with the exception of core schools grants and counter terrorism), agreeing a smaller number of targets with assessment and reporting focused only on these, lighter touch and less frequent inspection and a simpler funding model for children and young people.
In return, “single offer” areas will be expected to agree significant savings targets each year over and above those required for all local authorities and will be able to retain a share of these savings.
Councils that are strong in delivery of particular policy areas but weaker in others will be able to reach agreements for freedoms through thematic devolved responsibility under an 'innovative policy offer' on particular services like health or children's services. These offers can also apply to city regions or sub-regions, as well as single council areas.
The government also said that extension of the Total Place initiative countrywide will also provide greater flexibilities for councils. In addition to the single offer, the government says that this will make it easier for local authorities to collaborate with other public sector bodies and provide them with new freedoms for places to invest in preventative measures, such as the Community Cashback scheme and developing Neighbourhood Agreements to support safer neighbourhoods. The Total Place report, published by the Treasury and the DCLG, also promises more devolution to regions, cities and localities to improve economic growth and skills training.
The government also announced the removal of “at least” 10 per cent of the current National Indicator set and a reduction in ring-fencing and the number of funding streams for all councils.
The Department for Communities and Local Government (DCLG) also said that it would be “streamlining and aligning” central government functions at regional level, in particular by reducing duplication between Regional Development Agencies, the Homes and Communities Agency and Government Offices. In some cases, it said, these agencies may be co-located.
Communities Secretary John Denham said: "Total Place sets out a radical transformation to the way public services will be delivered in future. The new approach takes us way beyond a tinkering at the edges of the way individual local authorities operate, it amounts to a significant and collective shift in the way that public services work from health and social care to policing and children's services. It is about bringing together all local spend in the area to fit around the needs of customers, cutting out waste and duplication whilst protecting frontline services. This has not been done before.”
The budget report set out the savings expected by local government as £2.1bn by 2012-13. It said that this should be achieved by the greater use of collaborative procurement, increasing back office efficiency and more use of shared services functions, and cited the recent Putting the Frontline First Taskforce report as guidance.
Liam Byrne, Chief Secretary to the Treasury said: "Total Place recasts the relationship between local government and the centre. This report shows that giving local government greater freedom to respond to local needs delivers better services at lower costs. The message to local authorities is clear: if you perform well, you'll get more freedoms."
