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BEYOND THE ELECTION:
THE THREE MAIN POLITICAL PARTIES’
PLANS FOR LOCAL GOVERNMENT
March 2010
INTRODUCTION

In the run up to a General Election, debates about the policies of the three main political parties are fast-moving, but the key themes
are already clear. This paper focuses on local government. ‘Localism’ has long been a watchword for both government and opposition,
so much of the content of this paper concerns different proposals for achieving more localist models of governance and public service
delivery in one way or another.
Despite recent attempts by the Government to correct the balance, there is a shared view that public services have become too
centralised, with targets and inspection limiting local responsiveness and flexibility. All parties are now committed to more pooling of
budgets at a local level, and more local discretion over spending. But key differences remain over the approach to planning, inspection,
the regional agenda, the role of local authorities in education, the ability to raise funds locally and the delivery of local services
(This document has been complied ahead of the publication of the Election Manifestos of each party, and the details are correct at the
time of writing.)




                                                                    2
EDUCATION
All three parties want to boost parental choice and grant schools more autonomy, but two key battlegrounds are likely to be the role of the local authority in providing education,
and the budget for investment in new schools.




 LABOUR                                                        CONSERVATIVES                                                LIBERAL DEMOCRATS

 •   Most schools would remain under local authority           •   Aim to create a new breed of independent, free, and      •   The local authority is centre stage, assuming strategic
     control, although the target remains to turn the 400          non-selective primary and secondary Academies,               oversight of all state-funded schools, including
     poorest performing schools into independently-run             funded by taxpayers through a new funding                    Academies - but all schools would be granted the
     Academies, free from local authority oversight.               organisation, accountable to the Secretary of State.         freedoms to innovate which Academies currently
                                                                   The long-term goal is that Academy status becomes            enjoy.
 •   Continuation of the Building Schools for the Future
                                                                   the norm for all schools.
     programme to renew or refurbish every secondary                                                                        •   An independent Educational Standards Authority
     school over fifteen years. This is complemented by a      •   The Secretary of State for Education would determine         would hold all schools and local authorities to
     later commitment to a Primary Capital Programme,              whether any building could be used as a school,              account.
     which aims to renew at least half of all primary              removing the decision from local planners.
                                                                                                                            •   A pupil premium would channel an extra £2.5 billion
     schools in England by 2022/23.
                                                               •   Anyone would be able to turn an existing building into       direct to schools which take on children from deprived
 •   New chains of schools to be set up to spread their            a school without the need for planning permission,           backgrounds, which would result, they say, in classes
     expertise and improve and transform other schools             and existing schools that closed could not be approved       of 20 when a child is starting primary school and
     within the state sector. These would receive a special        for other uses without the secretary of state’s              classes of 16 at secondary.
     kitemark for excellence. Where a significant group of         approval.
     parents are dissatisfied with their local school
                                                               •   These new schools would receive the same
     leadership, the local authority will have to ballot all
                                                                   government funding as other schools in their
     parents on whether they want to bring in an
                                                                   community for every pupil they teach, with parents
     accredited provider, which could be a business,
                                                                   having the power to take their child out of a state
     university or educational trust.
                                                                   school, apply to a new Academy, and automatically
 •   If a significant number of Year 6 parents are                 transfer the ‘per pupil’ funding from the old school –
     dissatisfied with the choice of secondary school              currently around £5,000 - to the new Academy.
     available for their children, the local authority would
                                                               •   Extra capital funding, on top of the annual per pupil
     have to set out an action plan to deal with the
                                                                   funding, to fund new Academies in the most deprived
     situation and consider bringing in an accredited
                                                                   areas. The amount the state would pay for a poorer
     provider to take over an existing school or set up a
                                                                   child would be increased – a Pupil Premium – so that
     new one.
                                                                   schools would work particularly hard to attract them.
 •   The emphasis will also continue on children’s well-
                                                               •   Also signalled that they aim to pare back the £55
     being as well as educational standards, with multi-
                                                                   billion Building Schools for the Future programme,
     agency teams based in schools.
                                                                   with Michael Gove recently calling for an end to
                                                                   “waste” and pointing the figure at the Government’s
                                                                   renewal programme for schools.




                                                                                             3
HEALTH
All three parties are pledging to increase accountability on public health issues at local level, with greater or lesser involvement from local authorities. Both the Conservatives and
Labour also want to increase the availability of individual health care budgets, which can be used to obtain personal care.




 LABOUR                                                         CONSERVATIVES                                                  LIBERAL DEMOCRATS

 •    Plan to introduce key entitlements in public services,    •   Want to decentralise a host of public health initiatives   •   Pledge to halve the size of the Department of Health
     including health which will be centred around a                and reward councils for local improvements in, for             over the next parliament and devolve funding locally.
     guarantee of NHS treatment within 18 weeks or a                example, binge drinking, teenage pregnancy and
                                                                                                                               •   Would abolish Strategic Health Authorities and
     legal right to go private.                                     childhood obesity. This devolution of funds would
                                                                                                                                   instead, local NHS trusts within a region would act
                                                                    represent not less than 4 per cent of the total NHS
 •   Will give local authorities greater scrutiny powers over                                                                      together to commission tertiary care.
                                                                    budget.
     all local services, including health, strengthening the
                                                                                                                               •   Elected Local Health Boards would replace PCTs.
     democratic accountability of health services.              •   Local directors of health would be jointly appointed
                                                                                                                                   These would either commission independently, with
                                                                    by the local authority and Primary Care Trust, but the
 •   Want to build stronger working between local                                                                                  advice from the local authority, as is currently the
                                                                    PCT would be the body responsible for administering
     authorities and Primary Care Trusts (PCTs), including                                                                         case, or if there is a local preference for a local
                                                                    the budget and partnering with local bodies such as
     greater freedoms to pool local budgets. Councils and                                                                          authority to take on these functions, they could allow
                                                                    schools, councils and GPs to achieve their targets.
     PCTs will continue to be able to appoint joint chief                                                                          this too.
     executives if they choose.                                 •   GPs would have the power to hold patients’ budgets
                                                                                                                               •   Local Health Boards would be able to stop hospital
                                                                    and commission care on their behalf, with GP pay
 •   Increasing emphasis on treating and keeping people in                                                                         closures and hold the NHS to account for quality of
                                                                    linked to the quality of outcome. A plethora of
     the own home.                                                                                                                 care. Over time they would assume responsibility for
                                                                    information would be provided on the performance of
                                                                                                                                   revenue and resources.
 •   Have plans to merge PCTs in big cities, as part of the         trusts, hospitals, GPs, doctors etc to enable patients
     Government’s £11 billion efficiency drive.                     to exercise choice of provider.                            •   Patients would be able to choose their GP, and there
                                                                                                                                   would be greater use of direct payments and
                                                                •   Public health funding - channelled through local
                                                                                                                                   individualised budgets.
                                                                    authorities – would be weighted towards deprived
                                                                    areas. No data has been produced to demonstrate how        •   Would turn every NHS hospital into an employee-
                                                                    this would differ from the current distribution of             owned trust, if that is what local people wanted.
                                                                    public health funds, so it is unclear if there would be
                                                                    a meaningful change from existing policy.




                                                                                              4
SOCIAL CARE
Only one in ten local councils have made any estimate of the financial impact of an ageing population, according to the Audit Commission, despite spending on care services for
older people rising by almost half to £9.1 billion in the past decade. In a report entitled Under Pressure, the Audit Commission said that if care service costs increased with the
population, they could double by 2026 to £23 billion. This means that social care is bound to continue be at the heart of the election debate.



 LABOUR                                                       CONSERVATIVES                                                LIBERAL DEMOCRATS

 •   Intends to introduce a National Care Service which       •   Have announced that they would introduce a               •   Would set up a commission, with cross-party support,
     integrates adult social care and health to make              voluntary insurance scheme to cover all fees for             to develop proposals for long-term care of the elderly.
     services more preventative in nature.                        permanent residential care, in return for a one-off
                                                                                                                           •   Nick Clegg has said he would replace Labour’s
                                                                  payment of around £8,000 per person.
 •   As a stepping stone, those with the highest needs                                                                         investment in care at home with a pledge to introduce
     would be offered free personal care in their own home    •   This policy does not cover personal care in the home.        a week’s guaranteed respite care for the million
     and there would be more investment in services to                                                                         carers who care for more than 50 hours a week.
                                                              •   They are also working on plans for “a top-up insurance
     allow elderly people to continue living at home on
                                                                  policy for care at home”, thought to be around           •   Each carer would be entitled to a personal budget
     their own. Currently, home care is a means-tested
                                                                  £10,000.                                                     each year equivalent to the cost of a care homes
     service, with the amount people have to pay
                                                                                                                               weekly charge to redeem with whichever local service
     determined by their local authority within national
                                                                                                                               they wish.
     guidelines.
 •   Over time, the intention is to introduce more personal
     health budgets, which are currently being trialled,
     with the intention that ultimately everyone who could
     benefit from one has the option to use one.
 •   A new social care system could be financed in one of
     three ways: retirement deferred by three years to 68,
     with pension contributions to pay for a care fund;
     people could pay in instalments in the run-up to
     retiring at 65; or an estate levy could be deducted
     from the property of older people when the die
     (probably 10 per cent). More details are expected in a
     forthcoming White Paper.




                                                                                           5
LOCAL SERVICE DELIVERY
EasyCouncils vs John Lewis Councils
How local services are delivered is already a key battleground between Labour and the Conservatives, with a debate about the relative merits of the so-called ‘EasyCouncil’
and ‘John Lewis’ models running in the national media over recent months.
Two different models stand at opposite ends of the debate:


BARNET: THE EASYCOUNCIL                         LAMBETH: THE JOHN LEWIS COUNCIL                  Neither main political party has so far sought to associate itself with the Barnet model,
                                                                                                 although it seems inevitable that with the anticipated squeeze on central government
•   In Barnet, Conservative Mike Freer,         •   Championed by its Labour Leader, Cllr        funding to local authorities, more and more local councils will be seeking creative ways
    who until recently was leader of the            Steve Reed, Lambeth has rejected the         to raise new revenue through charging for services.
    council, has set up a new agenda                idea of charging extra for services,         In fact, nationally both Labour and the Conservatives have advocated greater mutualism
    which has been coined the                       and is instead considering offering          in public services, and some of the coverage of this debate has been slightly misleading.
    “EasyCouncil” model.                            incentives to encourage local people         Recently, the Conservatives argued that public sector workers should be allowed to form
                                                    to get involved in the delivery of           co-operatives. According to the recent policy proposal, groups of staff would be
•   In essence, the idea is to supplement
                                                    services themselves.                         empowered to set up independent co-operative enterprises which could form a joint-
    basic services provided by the council
    with additional, discretionary services     •   Under Cllr Reed’s plan, local people         venture with outside organisations. They would take responsibility for making efficiency
    paid for by the individual through              would be encouraged to take over             savings, including staff redundancies. Labour insists that its model, currently being
    charges.                                        local assets, such as community              promoted in parts of the NHS, is designed to involve users of the services as well as
                                                    centres, housing associations or             workers.
•   People could choose to pay extra for
                                                    primary schools.
    faster service, to speak to the same
    council official on all business or for a   •   Ultimately, he wants to see local
    premium service.                                people who get involved in a mutual
                                                    project receiving financial rewards.
•   Personal budgets are held by
                                                    They call it the “active community
    individuals with care needs
                                                    dividend”. One possibility is that the
•   Services are redesigned with life               community dividend could be a
    coaches helping the most vulnerable             reduction in local taxes.
    choose packages of care and support
    suitable to their needs.




                                                                                             6
PLANNING
One of the most controversial divides between the main parties is over the role of local authorities and regional bodies in the planning system, with Labour committed to a top-
down regional approach and the Conservatives favouring local plans built up from the grass roots.




 LABOUR                                                        CONSERVATIVES                                                 LIBERAL DEMOCRATS

 •   Planning authorities create long-term spatial plans for   •   Plan to scrap the Regional Spatial Strategies in favour   •   Pledged to scrap the Regional Development Agencies.
     how an area will develop. Once adopted, all planning          of local plans.                                           •   Oppose the Infrastructure Planning Committee.
     decisions made by local authorities must follow the       •   Local people in each neighbourhood will be able to        •   Would ensure that council houses sold under the Right
     plan for the area, unless other material considerations       specify what kind of development and use of land they         to Buy should be replaced, with local authorities able
     apply.                                                        want to see in each area, and people would be able to         to keep 100 per cent of the capital receipts from sales
 •   Planning matters in a region are managed by a                 use lands and buildings for any purpose if it accords         to invest in building new social housing in the area.
     regional planning body. Each regional planning body           with what is set out in the local plan.                   •   They will also make vacant public sector land
     has to produce a Regional Spatial Strategy (RSS),         •   Planning inspectors would no longer have the power to         available to build 100,000 more affordable houses.
     which outlines the spatial plans for the area and feed        rewrite local plans, as long as they comply with
     into the local plan. It includes matters such as how          national standards, are sensibly related to
     many homes are needed to meet the future needs of             neighbouring communities and have been developed
     people in the region, or whether the region needs a           by a fair and proper process.
     new major shopping centre or airport, looking 15 to 20    •   Local areas would have incentives to allocate land for
     years ahead. It offers areas for regeneration and             affordable homes, and for business development, as
     expansion and lists priorities for the environment,           they would keep 125 per cent of any extra council tax
     transport, infrastructure, economic development,              paid or the increase in business rates in the area for
     agriculture, minerals and waste treatment and                 the first six years.
     disposal.                                                 •   The new Infrastructure Planning Commission would be
 •   The Local Development Plan is drawn up by the local           wound up in favour of a specialised unit within the
     authority and outlines what sort of development will          Planning Inspectorate. It would no longer be
     take place, how it will be managed and when it will           independent and decisions would be referred to
     take place. It must conform to the region’s RSS and           ministers, but there would be a deadline for enquiries.
     must involve the local community.                         •   The Tories have proposed to scrap the ‘section 106’
 •   Committed to introducing the Community                        system, under which developers agree to provide
     Infrastructure Levy, under which developers’ planning         quotas of affordable homes when they develop homes
     gain payments will be based on a flat-rate calculation        for sale, proposing to replace this with a tariff – a
     rather than individual agreements negotiated on a             charge levied on all developments and put towards
     site-by-site basis, with exemptions for affordable            local infrastructure and affordable housing.
     housing and projects which would not otherwise
     proceed.
 •   Have set up the new Infrastructure Planning
     Commission to determine applications for large
     infrastructure projects such as power stations, large
     windfarms and airports, according to policy
     documents approved by Parliament and after local
     consultation.

                                                                                            7
GOVERNANCE MODELS
How local public services are run
The way that our public services are structured and organised tends to be one of the lower profile areas of debate for all political parties, with one notable exception – directly
elected mayors. However, our models of governance are what make decision making possible, at the level of the local neighbourhood, to our towns and cities and right up to the
regional level. While not always visible to citizens, changes to local governance models have the potential to make a big difference to those working within local government, who
are operating within a highly complex set of decision-making structures.
Labour’s reforms to council governance models introduced with the Local Government Act 2000 are now largely embedded and have been judged to have improved decision making
and accountability. No party is suggesting abolishing the leader-cabinet model, or scrutiny. The main areas of debate will be over how far local areas have to take account of
national priorities when they set out their local priorities with their local partners, and on proposals for city and city regional governance.




 LABOUR                                                      CONSERVATIVES                                                  LIBERAL DEMOCRATS

 •   Consulted on city and sub-regional governance options   •   Keen on directly elected mayors. Committed to              •   Would repeal the provisions in the Local Government
     (July 2009), including sub-regional mayoral options         referenda on directly elected mayors in the 12 largest         and Public Involvement in Health Bill limiting councils
     similar to the London model, but concluded that since       towns and cities which have not already held mayoral           to establishing an executive body with all other
     sub-regional governance arrangements are still              referenda.                                                     councillors in a scrutiny role, as they believe that
     developing it will keep an open mind about new forms    •   It is proposed that mayors would be of the core town           local leadership models should not be imposed on a
     of democratic accountability in the future.                 or city area, not the wider city region (as in London          council or area.
 •   Have attacked Tory plans to impose mayoral                  for example).                                              •   Particularly concerned about the routine
     referenda.                                              •   Have also mooted abolishing the post of Chief                  concentration of power in the hands of one person as
 •   Have introduced two city region pilots (in Birmingham       Executive in places that choose to introduce mayors in         in the executive mayor model, and so would restore
     and Manchester) and Multiple Area Agreements (MAAs)         order to save money.                                           the requirement to hold a referendum before creating
     to support closer collaboration between councils at                                                                        the post of directly elected mayor. Would also give
                                                             •   Have said they will allow councils to return to the            local people the power to abolish the post of directly
     the sub-regional level.                                     committee model of governance if local people agree            elected mayor where it has been introduced.
 •   Committed to allowing councils to create Economic           in a referendum (this was replaced with the
     Prosperity Boards, legally recognised bodies which          leader/cabinet or mayoral model by the Local               •   Councils that wished to could return to the committee
     bring together the economic development and                 Government Act 2000).                                          decision-making structure.
     regeneration functions with integrated transport.       •   Have promised to move powers from regional tiers of        •   Would abolish Regional Development Agencies, a move
                                                                 government to local government .                               which they say would save up to £2.3 billion annually,
                                                                                                                                although some funds would be reallocated to local
                                                             •   Will abolish all regional planning and housing powers.         government.
                                                             •   Will abolish Government Office for London and
                                                                 devolve its functions to the London boroughs, the
                                                                 Mayor or the GLA.
                                                             •   Will give local authorities the power to establish local
                                                                 enterprise partnerships to take over the development
                                                                 functions of the Regional Development Agencies.



                                                                                           8
TARGETS AND FREEDOMS FROM CENTRAL CONTROLS
There is agreement across the political parties of the need for a reduction in the number of targets set by central government and applied to local government. However there are
differences about how radical the cuts in such targets might be. The Government has overseen a cut back in centrally-set targets in recent years, with the introduction of Local
Area Agreements (LAAs) which are intended to reflect a combination of central and local priorities for an area. However the Conservatives have argued that LAAs are likely to be
“eclipsed” by the Total Place programme, which attempts to pool money at a local level.


 LABOUR                                                        CONSERVATIVES                                                 LIBERAL DEMOCRATS

 •   Committed to streamlining LAAs and reducing the           •   Committed to abolishing all ‘process targets’ applied     •   Scrap nationally set targets and performance
     number of indicators monitored by central                     to local authorities, requiring them instead to publish       indicators, with local communities setting their own
     government.                                                   information about the quality and quantity of                 priorities and targets instead.
                                                                   frontline services so people can assess the absolute
 •   Total Place pilots will quantify total burdens across                                                                   •   Replace the Concordat between local and central
                                                                   and relative performance of their council.
     local agencies and priorities for streamlining burdens.                                                                     government with one which establishes the rights,
                                                               •   Will give councils more freedom to establish how they         powers and responsibilities of each. Presumption that
 •   In addition, Labour has said it will reduce the number
                                                                   carry out their statutory regulatory duties, reducing         all public services should be delivered locally.
     of revenue streams to local government, publishing
                                                                   the burden of central guidance and enabling councils
     guidance on aligning and pooling local-level budgets to                                                                 •   Support a general power of competence for local
                                                                   to carry out their regulatory duties in ways which are
     frontline services. They are pledged to align the                                                                           councils.
                                                                   risk-based and appropriate locally.
     timing and co-ordination of grant payments from
     departments to local authorities by 2011/12.              •   Will phase out ring-fencing of local government
                                                                   funding.
 •   Want to continue “power of wellbeing” to allow local
     authorities to further the social, economic or            •   Will lift burdens on local government that lead to
     environmental well-being of its communities.                  funding pressures – implementing the
     Recently, however, some local councils found that the         recommendations of the Lifting Burdens Taskforce in
     legislation was not permissive enough to allow them           full.
     to set up a mutual insurance fund. The Government
                                                               •   Want to replace the power of well-being with a
     responded by introducing specific legislation to allow
                                                                   general power of competence, arguing that the power
     councils to do this.
                                                                   of well-being is too restrictive. Originally muted as
                                                                   allowing local government to take any action except
                                                                   raising taxes, unless it is prevented from taking that
                                                                   action by the common law, specific legislation or
                                                                   statutory guidance. More recently, however, Caroline
                                                                   Spelman has described this as allowing councils to do
                                                                   anything “legal and reasonable”, which may not be as
                                                                   permissive as originally billed.




                                                                                             9
ACCOUNTABILITY
Inspection versus Transparency
One of the fiercest areas of difference among Labour and the Conservatives in particular is about the future of local government inspection. The Government’s new inspection
regime, the Comprehensive Area Assessment (CAA), reported for the first time last December, but the Conservatives have already pledged to scrap it. The Conservative focus is on
increased transparency instead, with requirements for councils to publish performance information which can be used by citizens to make choices about public services or hold
them to account.


 LABOUR                                                     CONSERVATIVES                                                 LIBERAL DEMOCRATS

 •   Reduce centrally imposed burdens on the frontline      •   Will abolish the Comprehensive Area Assessment            •   Simplify inspection, focusing on improving outcomes
     from reporting, inspection and assessment, co-             (CAA).                                                        and service delivery.
     ordinating the timing of all inspections.
                                                            •   Role of Audit Commission will be to ensure propriety      •   Unconvinced by the new CAA regime.
 •   Committed to the new CAA regime, and to publishing         of public spending and investigate complaints.
     public service data at a neighbourhood level, which
                                                            •   Inspections should be risk-based.
     could be used to benchmark performance.
                                                            •   Will require councils to publish standardised
                                                                information about the quality of their services online,
                                                                so that citizens can easily compare performance with
                                                                others.
                                                            •   Have pledged to publish information on-line about
                                                                local spending down to items £500.
                                                            •   Details of local government staff earning over £58,500
                                                                will be put on line, including name and post.
                                                            •   Contracts and tender documents would be published
                                                                in full.
                                                            •   Information on councillors’ expenses would be
                                                                published in a standardised format so that they can be
                                                                compared with other in different councils.




                                                                                         10
LOCAL TAX AND FUNDING
Council tax is a highly visible tax which has been subject to criticism following steep rises in some areas in recent years. The Government’s approach has been to cap rises at 5 per
cent. However CIPFA have forecast that council tax is likely to rise by an average 1.8 per cent this year – a below inflation rise that has surprised some, given the financial
challenges facing local authorities.



 LABOUR                                                       CONSERVATIVES                                                LIBERAL DEMOCRATS

 •   Have rejected an overhaul of the local finance system    •   Plan to freeze council tax across England for two        •   Would scrap the Council Tax entirely and replay it
     in favour of a cap on council tax rises and three-year       years, pledging to provide additional funding to             with a local income tax, after piloting it first in some
     budgets for councils.                                        councils from central government to compensate for           areas. They would invite local councils to put
                                                                  the loss of tax income. This would be funded through         themselves forward to test the scheme in the second
                                                                  savings in the budget of the Department for                  year of a Parliament.
                                                                  Communities and Local Government. This has been
                                                                                                                           •   Would return the business rates to local control.
                                                                  costed at £1.4 billion by the IFS (March 2010).
                                                                                                                           •   Would review the funding formula for local
                                                              •   Abolish capping, but councils which set budgets which
                                                                                                                               government.
                                                                  need to increase tax by over the “national threshold”
                                                                  would have to get agreement in a referendum.             •   Argue that councils should be given greater power to
                                                                                                                               borrow against their assets through greater use of
                                                              •   Would allow local councils to vary business rates.
                                                                                                                               prudential borrowing.
                                                              •   Would review the funding settlement for local
                                                                  government, with Parliament agreeing the principles
                                                                  and an independent body setting the funding formula.
                                                              •   Argue that councils should be enabled to issue
                                                                  municipal bonds.




                                                                                           11
EFFICIENCY
One recent survey by the BBC estimated that 25,000 council jobs would be lost over the next few years, as central government puts the squeeze on funding. This will increase
pressure on local councils to find efficiency savings and do all they can to protect frontline services. There is a broad consensus that the Total Place pilots, designed to explore how
money can be pooled between different public service providers at a local level, could provide one way of delivering savings without impairing quality, with John Denham
estimating that up to £20 billion could be saved.


 LABOUR                                                         CONSERVATIVES                                                LIBERAL DEMOCRATS

 •   The Government has put in place a £5.5 billion             •   Total Place to become the main vehicle for securing      •   Total Place welcomed, but largely as a tool to secure
     efficiency savings target for councils to meet over the        efficiency improvements.                                     local agreement on priorities and to help decide what
     current spending review period, by 2011.                                                                                    to scrap or de-scope.
                                                                •   All items of expenditure over £500 to be published for
 •   Councils are expected to joining together to buy or            local scrutiny.                                          •   Reduced cost of inspection.
     share services – either with each other or with other
                                                                •   Emphasis on shared services and joint working.
     public sector agencies in their area. They also have to
     start using new technologies for cutting waste or          •   Reduced cost of inspection.
     being innovative when making purchasing decisions.
 •   The Government is also currently piloting 'Total Place',
     an initiative which will identify radical changes which
     will allow better services to be delivered at lower
     cost, and demonstrate the benefits of public services
     working together to address customers' needs.
 •   Pledge to support local authorities that wish to use
     their trading powers to create further commercial
     opportunities, set out guidance on the effective use of
     joint ventures by local authorities and their partners
     and consider single-area capital funding by Budget
     2010.
 •   Reduction in the number of revenue streams to local
     government, with a pledge to align the timing and co-
     ordination of grant payments from departments to
     local authorities by 2011/12.




                                                                                            12
LOCAL POLICING

LABOUR                                                        CONSERVATIVES                                                  LIBERAL DEMOCRATS

•   Neighbourhood policing teams will respond to local        •   Would make the police more accountable to local            •   Increased power to police authorities. They would
    priorities set in beat meetings rather than national          people through directly elected police commissioners,          have the sole right to sack and appoint the Chief
    targets.                                                      who will set priorities for the policing of local areas.       Constable, set local policing priorities, agree any
                                                                                                                                 national minimum standards, determine budgets and
•   A policing pledge making clear what the public can        •   The police would to publish detailed local crime data
                                                                                                                                 not have their council tax precepts capped by
    expect from the police with new guarantees on                 statistics every month, in an open and standardised
                                                                                                                                 Whitehall.
    response times; local crime information; monthly              format, and ensure police teams have regular
    public meetings to set local priorities; and a pledge         neighbourhood beat meetings.                               •   Direct election of police authorities. Where council
    that your local neighbourhood team will spend at least                                                                       and police force borders are the same, the council
                                                              •   A pledge to give local authorities and the police much
    80 per cent of its time on the beat in your                                                                                  would be the police authority. In the other 35 police
                                                                  stronger power over licensing, including the power to
    neighbourhood.                                                                                                               forces in England and Wales, two-thirds of members
                                                                  remove licences from, or refuse to grant licences to,
                                                                                                                                 would be elected by Single Transferable Vote and one-
•   More families supported by Family Intervention                any premises causing problems. Councils would be
                                                                                                                                 third nominated by councils. Authorities would still be
    Projects, giving intensive hard-edged support to those        able to charge more for late-night licences to pay for
                                                                                                                                 able to co-opt members to ensure diversity,
    families that need it, to tackle problems at their root       additional policing.
                                                                                                                                 experience and expertise.
    and save money.
                                                              •   Would introduce a series of early intervention
                                                                                                                             •   Police command units would be aligned with council
•   Local authorities would have the power to ban 24 hour         measures, like grounding orders.
                                                                                                                                 boundaries.
    drinking throughout a community in the interests of
    local people, combined with a vigorous crackdown on                                                                      •   Continued emphasis on neighbourhood policing.
    alcohol-related disorder.
                                                                                                                             •   3,000 more officers on the beat across England, Wales
•   People to have more of a say over where CCTV is used                                                                         and Scotland, paid for by scrapping ID cards.
    in their area.
•   A National Victims’ Service guaranteeing all victims of
    crime and anti-social behaviour referred by the police
    more clear, comprehensive and dedicated support,
    available seven days a week.
•   Would give local people more of a say in how
    offenders on Community Payback schemes repay the
    community for their crimes and enabling people in
    every area to vote online for which local community
    projects they wish to see worked on to increase
    confidence in justice being done.




                                                                                           13
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be
relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific
professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and
agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information
in this publication or for any decision based on it.
BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK
company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to
inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Services Authority to conduct
investment business.
BDO is the brand name of the BDO network and for each of the BDO Member Firms.
BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of
independent member firms.
Copyright ©2010 BDO LLP. All rights reserved.
www.bdo.co.uk


                       'Tax Team of the Year' 2009 and 2008
                       'Audit Team of the Year' 2008
                       'Corporate Finance Deal of the Year‘ 2008




                                                                                                                   14

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Beyond The Election: the three main political parties' plans for local government

  • 1. BEYOND THE ELECTION: THE THREE MAIN POLITICAL PARTIES’ PLANS FOR LOCAL GOVERNMENT March 2010
  • 2. INTRODUCTION In the run up to a General Election, debates about the policies of the three main political parties are fast-moving, but the key themes are already clear. This paper focuses on local government. ‘Localism’ has long been a watchword for both government and opposition, so much of the content of this paper concerns different proposals for achieving more localist models of governance and public service delivery in one way or another. Despite recent attempts by the Government to correct the balance, there is a shared view that public services have become too centralised, with targets and inspection limiting local responsiveness and flexibility. All parties are now committed to more pooling of budgets at a local level, and more local discretion over spending. But key differences remain over the approach to planning, inspection, the regional agenda, the role of local authorities in education, the ability to raise funds locally and the delivery of local services (This document has been complied ahead of the publication of the Election Manifestos of each party, and the details are correct at the time of writing.) 2
  • 3. EDUCATION All three parties want to boost parental choice and grant schools more autonomy, but two key battlegrounds are likely to be the role of the local authority in providing education, and the budget for investment in new schools. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Most schools would remain under local authority • Aim to create a new breed of independent, free, and • The local authority is centre stage, assuming strategic control, although the target remains to turn the 400 non-selective primary and secondary Academies, oversight of all state-funded schools, including poorest performing schools into independently-run funded by taxpayers through a new funding Academies - but all schools would be granted the Academies, free from local authority oversight. organisation, accountable to the Secretary of State. freedoms to innovate which Academies currently The long-term goal is that Academy status becomes enjoy. • Continuation of the Building Schools for the Future the norm for all schools. programme to renew or refurbish every secondary • An independent Educational Standards Authority school over fifteen years. This is complemented by a • The Secretary of State for Education would determine would hold all schools and local authorities to later commitment to a Primary Capital Programme, whether any building could be used as a school, account. which aims to renew at least half of all primary removing the decision from local planners. • A pupil premium would channel an extra £2.5 billion schools in England by 2022/23. • Anyone would be able to turn an existing building into direct to schools which take on children from deprived • New chains of schools to be set up to spread their a school without the need for planning permission, backgrounds, which would result, they say, in classes expertise and improve and transform other schools and existing schools that closed could not be approved of 20 when a child is starting primary school and within the state sector. These would receive a special for other uses without the secretary of state’s classes of 16 at secondary. kitemark for excellence. Where a significant group of approval. parents are dissatisfied with their local school • These new schools would receive the same leadership, the local authority will have to ballot all government funding as other schools in their parents on whether they want to bring in an community for every pupil they teach, with parents accredited provider, which could be a business, having the power to take their child out of a state university or educational trust. school, apply to a new Academy, and automatically • If a significant number of Year 6 parents are transfer the ‘per pupil’ funding from the old school – dissatisfied with the choice of secondary school currently around £5,000 - to the new Academy. available for their children, the local authority would • Extra capital funding, on top of the annual per pupil have to set out an action plan to deal with the funding, to fund new Academies in the most deprived situation and consider bringing in an accredited areas. The amount the state would pay for a poorer provider to take over an existing school or set up a child would be increased – a Pupil Premium – so that new one. schools would work particularly hard to attract them. • The emphasis will also continue on children’s well- • Also signalled that they aim to pare back the £55 being as well as educational standards, with multi- billion Building Schools for the Future programme, agency teams based in schools. with Michael Gove recently calling for an end to “waste” and pointing the figure at the Government’s renewal programme for schools. 3
  • 4. HEALTH All three parties are pledging to increase accountability on public health issues at local level, with greater or lesser involvement from local authorities. Both the Conservatives and Labour also want to increase the availability of individual health care budgets, which can be used to obtain personal care. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Plan to introduce key entitlements in public services, • Want to decentralise a host of public health initiatives • Pledge to halve the size of the Department of Health including health which will be centred around a and reward councils for local improvements in, for over the next parliament and devolve funding locally. guarantee of NHS treatment within 18 weeks or a example, binge drinking, teenage pregnancy and • Would abolish Strategic Health Authorities and legal right to go private. childhood obesity. This devolution of funds would instead, local NHS trusts within a region would act represent not less than 4 per cent of the total NHS • Will give local authorities greater scrutiny powers over together to commission tertiary care. budget. all local services, including health, strengthening the • Elected Local Health Boards would replace PCTs. democratic accountability of health services. • Local directors of health would be jointly appointed These would either commission independently, with by the local authority and Primary Care Trust, but the • Want to build stronger working between local advice from the local authority, as is currently the PCT would be the body responsible for administering authorities and Primary Care Trusts (PCTs), including case, or if there is a local preference for a local the budget and partnering with local bodies such as greater freedoms to pool local budgets. Councils and authority to take on these functions, they could allow schools, councils and GPs to achieve their targets. PCTs will continue to be able to appoint joint chief this too. executives if they choose. • GPs would have the power to hold patients’ budgets • Local Health Boards would be able to stop hospital and commission care on their behalf, with GP pay • Increasing emphasis on treating and keeping people in closures and hold the NHS to account for quality of linked to the quality of outcome. A plethora of the own home. care. Over time they would assume responsibility for information would be provided on the performance of revenue and resources. • Have plans to merge PCTs in big cities, as part of the trusts, hospitals, GPs, doctors etc to enable patients Government’s £11 billion efficiency drive. to exercise choice of provider. • Patients would be able to choose their GP, and there would be greater use of direct payments and • Public health funding - channelled through local individualised budgets. authorities – would be weighted towards deprived areas. No data has been produced to demonstrate how • Would turn every NHS hospital into an employee- this would differ from the current distribution of owned trust, if that is what local people wanted. public health funds, so it is unclear if there would be a meaningful change from existing policy. 4
  • 5. SOCIAL CARE Only one in ten local councils have made any estimate of the financial impact of an ageing population, according to the Audit Commission, despite spending on care services for older people rising by almost half to £9.1 billion in the past decade. In a report entitled Under Pressure, the Audit Commission said that if care service costs increased with the population, they could double by 2026 to £23 billion. This means that social care is bound to continue be at the heart of the election debate. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Intends to introduce a National Care Service which • Have announced that they would introduce a • Would set up a commission, with cross-party support, integrates adult social care and health to make voluntary insurance scheme to cover all fees for to develop proposals for long-term care of the elderly. services more preventative in nature. permanent residential care, in return for a one-off • Nick Clegg has said he would replace Labour’s payment of around £8,000 per person. • As a stepping stone, those with the highest needs investment in care at home with a pledge to introduce would be offered free personal care in their own home • This policy does not cover personal care in the home. a week’s guaranteed respite care for the million and there would be more investment in services to carers who care for more than 50 hours a week. • They are also working on plans for “a top-up insurance allow elderly people to continue living at home on policy for care at home”, thought to be around • Each carer would be entitled to a personal budget their own. Currently, home care is a means-tested £10,000. each year equivalent to the cost of a care homes service, with the amount people have to pay weekly charge to redeem with whichever local service determined by their local authority within national they wish. guidelines. • Over time, the intention is to introduce more personal health budgets, which are currently being trialled, with the intention that ultimately everyone who could benefit from one has the option to use one. • A new social care system could be financed in one of three ways: retirement deferred by three years to 68, with pension contributions to pay for a care fund; people could pay in instalments in the run-up to retiring at 65; or an estate levy could be deducted from the property of older people when the die (probably 10 per cent). More details are expected in a forthcoming White Paper. 5
  • 6. LOCAL SERVICE DELIVERY EasyCouncils vs John Lewis Councils How local services are delivered is already a key battleground between Labour and the Conservatives, with a debate about the relative merits of the so-called ‘EasyCouncil’ and ‘John Lewis’ models running in the national media over recent months. Two different models stand at opposite ends of the debate: BARNET: THE EASYCOUNCIL LAMBETH: THE JOHN LEWIS COUNCIL Neither main political party has so far sought to associate itself with the Barnet model, although it seems inevitable that with the anticipated squeeze on central government • In Barnet, Conservative Mike Freer, • Championed by its Labour Leader, Cllr funding to local authorities, more and more local councils will be seeking creative ways who until recently was leader of the Steve Reed, Lambeth has rejected the to raise new revenue through charging for services. council, has set up a new agenda idea of charging extra for services, In fact, nationally both Labour and the Conservatives have advocated greater mutualism which has been coined the and is instead considering offering in public services, and some of the coverage of this debate has been slightly misleading. “EasyCouncil” model. incentives to encourage local people Recently, the Conservatives argued that public sector workers should be allowed to form to get involved in the delivery of co-operatives. According to the recent policy proposal, groups of staff would be • In essence, the idea is to supplement services themselves. empowered to set up independent co-operative enterprises which could form a joint- basic services provided by the council with additional, discretionary services • Under Cllr Reed’s plan, local people venture with outside organisations. They would take responsibility for making efficiency paid for by the individual through would be encouraged to take over savings, including staff redundancies. Labour insists that its model, currently being charges. local assets, such as community promoted in parts of the NHS, is designed to involve users of the services as well as centres, housing associations or workers. • People could choose to pay extra for primary schools. faster service, to speak to the same council official on all business or for a • Ultimately, he wants to see local premium service. people who get involved in a mutual project receiving financial rewards. • Personal budgets are held by They call it the “active community individuals with care needs dividend”. One possibility is that the • Services are redesigned with life community dividend could be a coaches helping the most vulnerable reduction in local taxes. choose packages of care and support suitable to their needs. 6
  • 7. PLANNING One of the most controversial divides between the main parties is over the role of local authorities and regional bodies in the planning system, with Labour committed to a top- down regional approach and the Conservatives favouring local plans built up from the grass roots. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Planning authorities create long-term spatial plans for • Plan to scrap the Regional Spatial Strategies in favour • Pledged to scrap the Regional Development Agencies. how an area will develop. Once adopted, all planning of local plans. • Oppose the Infrastructure Planning Committee. decisions made by local authorities must follow the • Local people in each neighbourhood will be able to • Would ensure that council houses sold under the Right plan for the area, unless other material considerations specify what kind of development and use of land they to Buy should be replaced, with local authorities able apply. want to see in each area, and people would be able to to keep 100 per cent of the capital receipts from sales • Planning matters in a region are managed by a use lands and buildings for any purpose if it accords to invest in building new social housing in the area. regional planning body. Each regional planning body with what is set out in the local plan. • They will also make vacant public sector land has to produce a Regional Spatial Strategy (RSS), • Planning inspectors would no longer have the power to available to build 100,000 more affordable houses. which outlines the spatial plans for the area and feed rewrite local plans, as long as they comply with into the local plan. It includes matters such as how national standards, are sensibly related to many homes are needed to meet the future needs of neighbouring communities and have been developed people in the region, or whether the region needs a by a fair and proper process. new major shopping centre or airport, looking 15 to 20 • Local areas would have incentives to allocate land for years ahead. It offers areas for regeneration and affordable homes, and for business development, as expansion and lists priorities for the environment, they would keep 125 per cent of any extra council tax transport, infrastructure, economic development, paid or the increase in business rates in the area for agriculture, minerals and waste treatment and the first six years. disposal. • The new Infrastructure Planning Commission would be • The Local Development Plan is drawn up by the local wound up in favour of a specialised unit within the authority and outlines what sort of development will Planning Inspectorate. It would no longer be take place, how it will be managed and when it will independent and decisions would be referred to take place. It must conform to the region’s RSS and ministers, but there would be a deadline for enquiries. must involve the local community. • The Tories have proposed to scrap the ‘section 106’ • Committed to introducing the Community system, under which developers agree to provide Infrastructure Levy, under which developers’ planning quotas of affordable homes when they develop homes gain payments will be based on a flat-rate calculation for sale, proposing to replace this with a tariff – a rather than individual agreements negotiated on a charge levied on all developments and put towards site-by-site basis, with exemptions for affordable local infrastructure and affordable housing. housing and projects which would not otherwise proceed. • Have set up the new Infrastructure Planning Commission to determine applications for large infrastructure projects such as power stations, large windfarms and airports, according to policy documents approved by Parliament and after local consultation. 7
  • 8. GOVERNANCE MODELS How local public services are run The way that our public services are structured and organised tends to be one of the lower profile areas of debate for all political parties, with one notable exception – directly elected mayors. However, our models of governance are what make decision making possible, at the level of the local neighbourhood, to our towns and cities and right up to the regional level. While not always visible to citizens, changes to local governance models have the potential to make a big difference to those working within local government, who are operating within a highly complex set of decision-making structures. Labour’s reforms to council governance models introduced with the Local Government Act 2000 are now largely embedded and have been judged to have improved decision making and accountability. No party is suggesting abolishing the leader-cabinet model, or scrutiny. The main areas of debate will be over how far local areas have to take account of national priorities when they set out their local priorities with their local partners, and on proposals for city and city regional governance. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Consulted on city and sub-regional governance options • Keen on directly elected mayors. Committed to • Would repeal the provisions in the Local Government (July 2009), including sub-regional mayoral options referenda on directly elected mayors in the 12 largest and Public Involvement in Health Bill limiting councils similar to the London model, but concluded that since towns and cities which have not already held mayoral to establishing an executive body with all other sub-regional governance arrangements are still referenda. councillors in a scrutiny role, as they believe that developing it will keep an open mind about new forms • It is proposed that mayors would be of the core town local leadership models should not be imposed on a of democratic accountability in the future. or city area, not the wider city region (as in London council or area. • Have attacked Tory plans to impose mayoral for example). • Particularly concerned about the routine referenda. • Have also mooted abolishing the post of Chief concentration of power in the hands of one person as • Have introduced two city region pilots (in Birmingham Executive in places that choose to introduce mayors in in the executive mayor model, and so would restore and Manchester) and Multiple Area Agreements (MAAs) order to save money. the requirement to hold a referendum before creating to support closer collaboration between councils at the post of directly elected mayor. Would also give • Have said they will allow councils to return to the local people the power to abolish the post of directly the sub-regional level. committee model of governance if local people agree elected mayor where it has been introduced. • Committed to allowing councils to create Economic in a referendum (this was replaced with the Prosperity Boards, legally recognised bodies which leader/cabinet or mayoral model by the Local • Councils that wished to could return to the committee bring together the economic development and Government Act 2000). decision-making structure. regeneration functions with integrated transport. • Have promised to move powers from regional tiers of • Would abolish Regional Development Agencies, a move government to local government . which they say would save up to £2.3 billion annually, although some funds would be reallocated to local • Will abolish all regional planning and housing powers. government. • Will abolish Government Office for London and devolve its functions to the London boroughs, the Mayor or the GLA. • Will give local authorities the power to establish local enterprise partnerships to take over the development functions of the Regional Development Agencies. 8
  • 9. TARGETS AND FREEDOMS FROM CENTRAL CONTROLS There is agreement across the political parties of the need for a reduction in the number of targets set by central government and applied to local government. However there are differences about how radical the cuts in such targets might be. The Government has overseen a cut back in centrally-set targets in recent years, with the introduction of Local Area Agreements (LAAs) which are intended to reflect a combination of central and local priorities for an area. However the Conservatives have argued that LAAs are likely to be “eclipsed” by the Total Place programme, which attempts to pool money at a local level. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Committed to streamlining LAAs and reducing the • Committed to abolishing all ‘process targets’ applied • Scrap nationally set targets and performance number of indicators monitored by central to local authorities, requiring them instead to publish indicators, with local communities setting their own government. information about the quality and quantity of priorities and targets instead. frontline services so people can assess the absolute • Total Place pilots will quantify total burdens across • Replace the Concordat between local and central and relative performance of their council. local agencies and priorities for streamlining burdens. government with one which establishes the rights, • Will give councils more freedom to establish how they powers and responsibilities of each. Presumption that • In addition, Labour has said it will reduce the number carry out their statutory regulatory duties, reducing all public services should be delivered locally. of revenue streams to local government, publishing the burden of central guidance and enabling councils guidance on aligning and pooling local-level budgets to • Support a general power of competence for local to carry out their regulatory duties in ways which are frontline services. They are pledged to align the councils. risk-based and appropriate locally. timing and co-ordination of grant payments from departments to local authorities by 2011/12. • Will phase out ring-fencing of local government funding. • Want to continue “power of wellbeing” to allow local authorities to further the social, economic or • Will lift burdens on local government that lead to environmental well-being of its communities. funding pressures – implementing the Recently, however, some local councils found that the recommendations of the Lifting Burdens Taskforce in legislation was not permissive enough to allow them full. to set up a mutual insurance fund. The Government • Want to replace the power of well-being with a responded by introducing specific legislation to allow general power of competence, arguing that the power councils to do this. of well-being is too restrictive. Originally muted as allowing local government to take any action except raising taxes, unless it is prevented from taking that action by the common law, specific legislation or statutory guidance. More recently, however, Caroline Spelman has described this as allowing councils to do anything “legal and reasonable”, which may not be as permissive as originally billed. 9
  • 10. ACCOUNTABILITY Inspection versus Transparency One of the fiercest areas of difference among Labour and the Conservatives in particular is about the future of local government inspection. The Government’s new inspection regime, the Comprehensive Area Assessment (CAA), reported for the first time last December, but the Conservatives have already pledged to scrap it. The Conservative focus is on increased transparency instead, with requirements for councils to publish performance information which can be used by citizens to make choices about public services or hold them to account. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Reduce centrally imposed burdens on the frontline • Will abolish the Comprehensive Area Assessment • Simplify inspection, focusing on improving outcomes from reporting, inspection and assessment, co- (CAA). and service delivery. ordinating the timing of all inspections. • Role of Audit Commission will be to ensure propriety • Unconvinced by the new CAA regime. • Committed to the new CAA regime, and to publishing of public spending and investigate complaints. public service data at a neighbourhood level, which • Inspections should be risk-based. could be used to benchmark performance. • Will require councils to publish standardised information about the quality of their services online, so that citizens can easily compare performance with others. • Have pledged to publish information on-line about local spending down to items £500. • Details of local government staff earning over £58,500 will be put on line, including name and post. • Contracts and tender documents would be published in full. • Information on councillors’ expenses would be published in a standardised format so that they can be compared with other in different councils. 10
  • 11. LOCAL TAX AND FUNDING Council tax is a highly visible tax which has been subject to criticism following steep rises in some areas in recent years. The Government’s approach has been to cap rises at 5 per cent. However CIPFA have forecast that council tax is likely to rise by an average 1.8 per cent this year – a below inflation rise that has surprised some, given the financial challenges facing local authorities. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Have rejected an overhaul of the local finance system • Plan to freeze council tax across England for two • Would scrap the Council Tax entirely and replay it in favour of a cap on council tax rises and three-year years, pledging to provide additional funding to with a local income tax, after piloting it first in some budgets for councils. councils from central government to compensate for areas. They would invite local councils to put the loss of tax income. This would be funded through themselves forward to test the scheme in the second savings in the budget of the Department for year of a Parliament. Communities and Local Government. This has been • Would return the business rates to local control. costed at £1.4 billion by the IFS (March 2010). • Would review the funding formula for local • Abolish capping, but councils which set budgets which government. need to increase tax by over the “national threshold” would have to get agreement in a referendum. • Argue that councils should be given greater power to borrow against their assets through greater use of • Would allow local councils to vary business rates. prudential borrowing. • Would review the funding settlement for local government, with Parliament agreeing the principles and an independent body setting the funding formula. • Argue that councils should be enabled to issue municipal bonds. 11
  • 12. EFFICIENCY One recent survey by the BBC estimated that 25,000 council jobs would be lost over the next few years, as central government puts the squeeze on funding. This will increase pressure on local councils to find efficiency savings and do all they can to protect frontline services. There is a broad consensus that the Total Place pilots, designed to explore how money can be pooled between different public service providers at a local level, could provide one way of delivering savings without impairing quality, with John Denham estimating that up to £20 billion could be saved. LABOUR CONSERVATIVES LIBERAL DEMOCRATS • The Government has put in place a £5.5 billion • Total Place to become the main vehicle for securing • Total Place welcomed, but largely as a tool to secure efficiency savings target for councils to meet over the efficiency improvements. local agreement on priorities and to help decide what current spending review period, by 2011. to scrap or de-scope. • All items of expenditure over £500 to be published for • Councils are expected to joining together to buy or local scrutiny. • Reduced cost of inspection. share services – either with each other or with other • Emphasis on shared services and joint working. public sector agencies in their area. They also have to start using new technologies for cutting waste or • Reduced cost of inspection. being innovative when making purchasing decisions. • The Government is also currently piloting 'Total Place', an initiative which will identify radical changes which will allow better services to be delivered at lower cost, and demonstrate the benefits of public services working together to address customers' needs. • Pledge to support local authorities that wish to use their trading powers to create further commercial opportunities, set out guidance on the effective use of joint ventures by local authorities and their partners and consider single-area capital funding by Budget 2010. • Reduction in the number of revenue streams to local government, with a pledge to align the timing and co- ordination of grant payments from departments to local authorities by 2011/12. 12
  • 13. LOCAL POLICING LABOUR CONSERVATIVES LIBERAL DEMOCRATS • Neighbourhood policing teams will respond to local • Would make the police more accountable to local • Increased power to police authorities. They would priorities set in beat meetings rather than national people through directly elected police commissioners, have the sole right to sack and appoint the Chief targets. who will set priorities for the policing of local areas. Constable, set local policing priorities, agree any national minimum standards, determine budgets and • A policing pledge making clear what the public can • The police would to publish detailed local crime data not have their council tax precepts capped by expect from the police with new guarantees on statistics every month, in an open and standardised Whitehall. response times; local crime information; monthly format, and ensure police teams have regular public meetings to set local priorities; and a pledge neighbourhood beat meetings. • Direct election of police authorities. Where council that your local neighbourhood team will spend at least and police force borders are the same, the council • A pledge to give local authorities and the police much 80 per cent of its time on the beat in your would be the police authority. In the other 35 police stronger power over licensing, including the power to neighbourhood. forces in England and Wales, two-thirds of members remove licences from, or refuse to grant licences to, would be elected by Single Transferable Vote and one- • More families supported by Family Intervention any premises causing problems. Councils would be third nominated by councils. Authorities would still be Projects, giving intensive hard-edged support to those able to charge more for late-night licences to pay for able to co-opt members to ensure diversity, families that need it, to tackle problems at their root additional policing. experience and expertise. and save money. • Would introduce a series of early intervention • Police command units would be aligned with council • Local authorities would have the power to ban 24 hour measures, like grounding orders. boundaries. drinking throughout a community in the interests of local people, combined with a vigorous crackdown on • Continued emphasis on neighbourhood policing. alcohol-related disorder. • 3,000 more officers on the beat across England, Wales • People to have more of a say over where CCTV is used and Scotland, paid for by scrapping ID cards. in their area. • A National Victims’ Service guaranteeing all victims of crime and anti-social behaviour referred by the police more clear, comprehensive and dedicated support, available seven days a week. • Would give local people more of a say in how offenders on Community Payback schemes repay the community for their crimes and enabling people in every area to vote online for which local community projects they wish to see worked on to increase confidence in justice being done. 13
  • 14. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Services Authority to conduct investment business. BDO is the brand name of the BDO network and for each of the BDO Member Firms. BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms. Copyright ©2010 BDO LLP. All rights reserved. www.bdo.co.uk 'Tax Team of the Year' 2009 and 2008 'Audit Team of the Year' 2008 'Corporate Finance Deal of the Year‘ 2008 14