The Shape of Things to Come Pre-Election Manifesto Discussions the Shape of Things to Come: Pre-Election Manifesto Discussions

The shape of things to come Pre-election manifesto discussions The shape of things to come: Pre-election manifesto discussions

Introduction However, most officers agreed that what wasn’t in the manifestos was what they wanted most: In April 2015, we invited members of LGiU’s Policy a comprehensive review of the ‘broken’ local Network to join us at our offices to discuss key government finance system. This view is backed up points from the recent crop of manifestos. Over by the results of the annual finance survey we do 200 policy officers are part of the network from our with MJ. In this year’s survey 9 out of 10 councils felt 150+ member authorities. that the local government finance system is not fit for purpose.2 The attendees at both of our two lunchtime events reflected our broad member base: districts, There was also some debate around what shape counties, cities, London boroughs of all political the next era of efficiencies might take. If it involves colours, and with very different challenges across integrating public sector budgets (and estates, the country – but a lot of similarities too. and personnel) across geographic areas, someone has to hold the reins – and it might as well be local At the beginning of each roundtable, we asked government… officers to identify what issues were most important to them in their local areas. This shaped our Devolution discussions during the roundtable. The following subjects emerged as the major themes we wanted Devolution (or the lack of it) is the ‘mood music’ to pick out of the manifestos: of the parties’ offer to local government in their manifestos. What is the long term shape – and the ●● Finance long term role – of local government? ●● Devolution ●● Welfare reform There was a view that until recently, the main driver ●● Health and social care integration for devolution from the centre has been economic ●● Housing (and planning) growth. The concept of what devolution might mean for councils has recently widened to include For more analysis of the manifestos, see our general transport and housing – what else might it include election briefing: Manifestos: Conservative, Labour, in the future? Liberal Democrats1 There was a strong sense in the room on both days Finance that central government expects local government to put together a group of authorities before In each manifesto, the need to eradicate the deficit bidding for devolution – but also cynicism about underpins the other pledges and forms a large part how seriously these bids will be taken. of the economic policy – unspoken or otherwise. The message from all the parties is that we’re only “If you’re up for it, and you can do it and halfway there, with more savings or cuts planned. you’re competent, it’s all yours.” So continued austerity is certain, although the scale Eric Pickles on devolution to local government3 (and detail) of the cuts varies from manifesto to manifesto. Non-protected services are likely to be even more vulnerable in the future. 2 www.lgiu.org.uk/2015/02/19/lgiu-mj-local-government- finance-survey-the-2015-results 1 www.lgiu.org.uk/briefing/manifestos-conservative-labour- 3 www.nottinghampost.com/Election-2015-Eric-Pickles-talks- liberal-democrats devolution-local/story-26255567-detail/story.html

LGiU The shape of things to come 1 There was also a feeling that devolution is the Liberal Democrats want to introduce a different presented in the manifestos as a panacea – without system altogether. This of course links up with our consideration for how different models might conversations around ‘the self sufficient council’. work in different areas. There is a danger of falling Business rate retention would of course be great for into a ‘one size fits all’ approach, which has its councils for whom the sums add up. For others, it advantages – but also significant disadvantages. might not be so positive. Indeed, if the expectation There was a view that the Greater Manchester becomes that councils should be self-financing, it model is unlikely to work outside metro areas – could even have a negative impact. in, for example, a two-tier area. District councils don’t always fit neatly into the combined authority Underpinning this debate are questions of model alongside their counties. The Manchester democracy and accountability. Are combined authorities have also been collaborating as Greater authorities accountable to the public? Does the Manchester for a very long time. Other areas – other public understand what a combined authority is groups of local authorities – do not necessarily have and what it does? the same history of working together. Crucially for Manchester, there was also the political will – even There were also important questions about what political push – to devolve from Whitehall (and happens if we get ‘devolution on demand’ and an specifically George Osborne)4. ad hoc arrangement of different structures and models – an elected mayor and Combined Authority For two tier areas, the trappings of a combined in Manchester, a cluster of virtual combined authority – specifically the requirement for an authorities in London, a Cornish Assembly, Greater elected mayor – seemed alien to the way their areas Cambridge and so on. look and work. For London councils, the Manchester model is also a non-starter. For a start, they can’t Will this landscape make sense to the people living legally form combined authorities. If there is an in it, and will it be democratically accountable? ‘ideal size’ (in terms of the population of an area) Simply creating structures that are nominally that central government have in mind for devolved democratically accountable doesn’t make them arrangements, that would leave London with scope truly accountable. For example, while there are for 6 or 7 combined authorities. Some thought there excellent parish councils with healthy electoral might be appetite for ‘virtual combined authorities’ turnouts, there are parish councils where there with sub-regional groups of councils working are not enough candidates to hold an election – together at a ‘middle tier’ of London government. democracy does not necessarily follow structure. You need to have a clear democratic mandate built There was a general consensus that devolution into whatever structure you set up. without fiscal devolution is not to be trusted. The debate on devolution, some thought, didn’t include Alternatively, if we do get a ‘one size fits all’ enough detail on how it would be funded. devolution solution, which comes with a certain set of funding pots, will these pots work for everyone? If Self-sufficiency came up at both roundtables. For a devolution package includes powers and funding some councils, this is a realistic and very desirable for issues that aren’t your biggest concerns locally, aim. At both roundtables, we had representatives how will that ultimately contribute to greater of councils with significant economic ‘magnets’ localism? What if more powers around schools are within their boundaries. The ability to retain 100% devolved but all your schools are now academies or of business rates would set these councils firmly on free schools? the path to economic self-sufficiency. There was some debate about the distinction In terms of business rate retention, Labour want to between ‘localism’ and ‘devolution’. Localism was roll 100% retention out; the Conservatives, having seen as bottom up, while devolution was regarded piloted this in three areas, want to review their pilot; as top down. Are devolved functions inherently 4 www.theguardian.com/uk-news/2015/feb/12/secret- more accountable than projects or initiatives that negotiations-restore-manchester-greatness have been built from the ground up?

2 The shape of things to come LGiU Many in the room argued in favour of a proper See our welfare reform general election briefing constitutional settlement for local government – a for more information: Welfare Reform: pre-general redefining of the relationship between central and election special8 local government, and perhaps too a redefining of the relationship between local government and Health and social care integration citizens. Integration between health and social care is Finally, one participant said that local government ‘the new black’ this year for party manifestos. It would need to have the strength to refuse a is present in all three major parties’ manifestos structure when it wouldn’t work for their local area – but each proposal contains contradictions and – but will councils willingly turn down opportunities ambiguities. The King’s Fund has scrutinised for a greater say over their affairs? Labour’s particularly hard, as they seem to be claiming that they will integrate health and social For more information on manifesto commitments care and repeal parts of the Health and Social Care to devolution, please see our briefing: Leadership Act, without any top-down reorganisation. and governance of local growth – pre-general election round up5 The “elephant in the room” when it comes to integration is funding. Integration is perceived as a You can keep up with the developing devolution magic wand that will save money – what if it costs debate on our website6. more than it saves?

The LGA have a DevoNext hub7 where they are collecting What if, one person asked, social care was integrated stories and campaigning for more devolution. with healthcare and local government’s role was significantly reduced? Would it matter? Would it Welfare reform not release the pressure we are facing on social care budgets, freeing local government to concentrate A big concern for participants was the impact of on other matters? continuing austerity – including significant welfare cuts – on local government. People spoke about See our general election health and social care local government as the fallback for citizens. briefing for more information: Key issues in health Councils tend to shoulder the burden when cuts and social care: pre-general election special are imposed higher up in the system, as well as briefing9 having their own cuts to worry about. Additionally, welfare cuts are hard to implement quickly and the Housing (and planning) rules seem to change frequently. The Labour manifesto of course takes a more ‘market The spare room subsidy policy was seen as having interventionist’ approach to housing than the had an important impact on many councils, but it Conservatives. Labour has adopted the principles was felt that unless there is a majority Conservative of the Lyons review10, which was reasonably government in May, this is likely to go. comprehensive in its recommendations around local government. The Conservatives did however If we do have more devolved powers to local welcome the Elphicke-House report11 published government, might benefits become more localised earlier this year. It’s hard to see how you would too? There are certainly parts of the welfare agenda achieve housing ‘targets’ without some intervention that local government might want – back to work along the way. programmes, for example, or training schemes. Are there other benefits that local government probably 8 www.lgiu.org.uk/briefing/welfare-reform-pre-general-election- special wouldn’t want? 9 www.lgiu.org.uk/briefing/lgiu-election-special-key-issues-in- 5 www.lgiu.org.uk/briefing/leadership-and-governance-of-local- health-and-social-care growth-pre-general-election-round-up 10 www.lgiu.org.uk/briefing/the-lyons-housing-review 6 www.lgiu.org.uk/project/devolution 11 www.lgiu.org.uk/briefing/the-elphicke-house-report-on- 7 www.local.gov.uk/devolution housing-delivery

LGiU The shape of things to come 3 See our general election housing and planning Other general election briefings: briefings for more information: ●● Sport, Arts and Culture: pre-general election ●● Housing: pre-general election special12 special15 ●● Planning: pre-general election special13 ●● Policing and criminal justice: pre-general election special16 Other issues ●● Transport: pre-general election special17 ●● Election Time 2015: issues for local authorities18 Children’s services was discussed briefly and more information can be found in our pre-election What will stick? briefing: Education and children’s services: 2015 Election Manifestos14 These manifestos are of course negotiating tools. We’re all aware that another coalition is possible, Recruitment and skills were an underlying theme. even likely. It is impossible to say which of the How does local government shape the agenda if it major and minor parties’ pledges will make it into can’t attract or develop the right sort of people with policy. Even the shape of the structures around us is the right set of skills? This is a particular problem for uncertain, with each party wanting different things smaller, more rural councils but of concern for local for the direction of local governance. government as a whole. Thanks to Browne Jacobson LLP for sponsoring One group discussed the relationship between the events as part of their ongoing work on Whitehall and local government. Whitehall, they devolution. See their recent report following a thought, needed to have more understanding of devolution roundtable,19 which LGiU contributed to. local government – and more respect. Does Whitehall understand the intricacies of life in a two-tier system? What about when you throw different Clinical Commissioning Group boundaries into the mix?

One conversation focused on the possibility of a 15 www.lgiu.org.uk/briefing/sport-arts-and-culture-pre-general- ‘constitutional settlement’ for local government, election-special 16 www.lgiu.org.uk/briefing/policing-and-criminal-justice-pre- written by local government. general-election-special 12 www.lgiu.org.uk/briefing/housing-pre-general-election- 17 www.lgiu.org.uk/briefing/transport-pre-general-election- special special 13 www.lgiu.org.uk/briefing/planning-pre-general-election- 18 www.lgiu.org.uk/briefing/election-time-2015-issues-for-local- special authorities 14 www.lgiu.org.uk/briefing/education-and-childrens-services- 19 www.brownejacobson.com/about_us/press_office/articles/ 2015-election-manifestos the_path_to_greater_regional_d.aspx

4 The shape of things to come LGiU