Sometimes, challenging times are the most interesting and, if successfully managed, they can even be the most rewarding. Current events will certainly test us – especially in local government, where demands are high and the prospect of any additional resource from central government and others is non-existent or low.
But we need to look beyond the media headlines – where a whole new landscape is emerging.
Unlike private sector organisations which adjust resources to balance need, local government finds demand actually increases while cuts are being made Councils have a good track record on improving performance, while achieving year-on-year efficiency savings, and it is against this background, I believe local government will rise to the challenge and bring out the best in our organisations.
We are all keen to do what we can to demonstrate action is being taken to deal with the current issues, while reducing the impact and future risks facing us. But then, phrases such as ‘international rescue’ just reminds me of the mid-1960s TV puppet show Thunderbirds, and I wonder whether the decisions being taken are pulling the right strings and moving us in the right direction.
Many councils are facing severe financial difficulties not of their own making – a result of the economic crisis.
We also face additional, unnecessary challenges in the form of government targets through the new performance and inspection regime, the Comprehensive Area Assessment (CAA).
So just how should local government be supported? Councils have a good reputation for partnership working, especially in comparison with others in the public sector, and it is probably for this reason that local government has been selected to oversee partnership working under the new CAA initiative. Perhaps, now, there should be a rebalancing of scrutiny, inspection and regulation away from local government, which has demonstrated consistent improvements and back on to parts of the private sector which have ‘messed up’ with the introduction of a more relaxed approach to regulation and monitoring.
The other key area is the resources available to local government. It is unlikely that local government will receive the same positive response and injection of cash that is being provided to the banking industry and other parts of the private sector.
In my own authority, we were given a particularly-poor settlement under CSR 07, and every 1% fall in interest rates creates a further £180,000 loss of income for the year. To make matters worse, the Business Rate Supplements Bill is proposing to confer powers on the Greater London Authority, county and unitary authorities to impose a levy on non-domestic ratepayers – businesses – to raise money for expenditure on projects expected to promote economic development.
Instead of this, one possible way of assisting local government and businesses could be to redirect a higher proportion of the national non-domestic rates (NNDR) to councils. In Tandridge, the district council receives just 35% of the NNDR collected. By redirecting this money through an adjustment to the formula, businesses would not have to contribute additional funds locally, and domestic council taxpayers would also benefit.
We are being approached by chambers of commerce, the Federation of Small Businesses (FSB) and Small to Medium Enterprises (SMEs), as well as individual business leaders, for assistance and programmes to support their operations and jobs locally. Our current commitments, and both central and local priorities, mean it is extremely difficult to offer up support which matches local need. This proposal would seem to assist on both counts.
Another funding area in need of urgent review is the housing revenue account subsidy system. This is generating an ever-increasing surplus to central government, instead of being used to support tenants in poor areas and increase housing in the public sector, In Tandridge, which is by no means the worst-hit council, from every £1 of rent a tenant pays, 36p goes to the Treasury.
Localising control over housing finance would enable us to increase resources available to improve and maintain homes, increase housing supply – and provide a much-needed economic boost to support local businesses, jobs and skills.
At the beginning of Thunderbirds, I recall there was something to the effect that ‘Anything can happen in the next half-hour!’ And just like that TV show, anything could happen, only the timeframe is considerably longer, the challenges far greater, and all this is for real. It is our responsibility to work together to ensure our rescue packages save the day, and I so hope the initiative above will be given serious consideration.
Stephen Weigel is chief executive of Tandridge DC
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