Briefing Paper Briefing Paper
ASPECTS OF LOCALISM
NOVEMBER 2011 Localism: Briefing Paper 2
Contents
1 THE RECENT HISTORICAL CONTEXT 3
2 WHAT IS LOCALISM? 4
3 BENEFITS AND RISKS 5
4 SOME ISSUES FOR DEBATE 7
5 CURRENT PROPOSALS FOR CHANGE 7
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Localism: Briefing Paper 3
1 The recent historical context
The War Years – the height of localism - Heyday of Local Government: expansion of local authority intervention in the years after 1900. - Public Services: WW1 saw a dramatic extension of municipal action as councils organised an increasing number of local services, including food supply and medical services. It was the prelude to the dramatic expansion of municipal activity in the years after 1918, an expansion in which local Labour movements played a key role. - After 1918 municipal activity increased extensively in the provision of medical care and education. Central government spending on education fell dramatically and this power was transferred to local authorities whose spending rose from £24 million in 1919-20 to £47 million in1937-381. - Housing: The role of councils was expanded in the provision of housing as Parliamentary legislation from 1919 gave councils generous subsidies. As a result, over a million council houses were built between the wars. - The vivacity of local government can be seen in the total local authority spending figures which rose from £140 million in 1913 to £533 million in 19392.
The 70s and 80s – Shifts towards centralisation - Consultation: Between 1970 and 1974, the tone of centre-local relations was one of partnership. Consultation was the “normal” style of central-local relations throughout the postwar period until the mid-1970s. - Corporatism: Under the Labour government of 1974-79, local authorities were caught up in the corporatism of government at the time. Like trade unions, local authorities were co-opted into government decision-making. - Confrontation/centralisation: After 1979, the era of consensus and cooperation came to an end with the Conservative administrations which tended to adopt a confrontational approach to local government. Margaret Thatcher did not accept the democratic qualifications of local government, because the turnout in local elections is so low, whereas she believed her government had a national mandate to carry out their economic and social policies3.
The Conservative Administration 1979– 1997. An era of central governance. - Privatization and Housing: The privatization of housing aimed to remove the stock of public housing from local authority and put it in private-sector hands. - Education: Since the 1944 Education Act, local authorities had been given a virtually free hand in deciding the school curriculum. This came to an end in 1988 with the Education Reform Act. The Act weakened, and even ended, local authority control over schools. The new opportunities for parents to opt out of local control meant that fiscal power was transferred to central government. - The marketisation of services: The forced acceptance of competitive tendering entailed a fundamental revision of the power of local authorities as they came to be seen as agencies for the delivery of national policy.
1 The Remaking of the British Working Class, 1840-1940. Mike Savage and Andrew Miles. London: Routledge, 1994. Pp. 69.
2 Ibid.
3 UK government & politics. Andy Williams. Oxford, Heinemann Educational, 1995.
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Localism: Briefing Paper 4
2 What is localism?
I. POSSIBLE DEFINITIONS
The Big Society The concept was developed by the Conservative Party and formed part of their 2010 election manifesto.
The Coalition document, Building the Big Society, states that;
We want to give citizens, communities and local government the power and information they need to come together, solve the problems they face and build the Britain they want... Only when people and communities are given more power and take more responsibility can we achieve fairness and opportunity for all.4
Localism and decentralisation Localism can narrowly be defined as the devolution of power to local government.
Decentralisation, in this sense, is “sublocalism”5; the broader dispersal of power to civil society (individuals, charities, community action groups, other voluntary organisations, and commercial organisations).
The two terms have arguably been conflated by the Coalition’s concept of the Big Society (involving many aspects of devolution to the “sublocal”) and its legislative vehicle (the perhaps misleadingly named Localism Bill)6.
Eric Pickles, Secretary of State for Communities and Local Government, defines the term broadly; “Localism is the principle, the mantra, and defines everything we do...”7
Double devolution Devolving power from central to local government, and from there to citizens, neighbourhoods and the third sector.
Community Both geographical areas e.g. counties, neighbourhoods, districts, parishes and communities of interest, including faith groups, cultural groups, age related groups and specific interest groups.
4 http://www.cabinetoffice.gov.uk/sites/default/files/resources/building-big-society_0.pdf
5 Emeritus Professor George Jones, London School of Economics, in oral evidence to the Communities and Local Government Committee, reported in
House of Commons Research Paper 11/02.
6 When you start to raise "double devolution" or the "Big Society" or decentralising grants, you’re doing it below local government. That’s sublocalism. They should not be allowed to get away with the misuse of language appropriating "localism". Ibid.
7 Eric Pickles, Queen’s Speech Forum, 11 June 2010, http://www.communities.gov.uk/speeches/corporate/queensspeechforum
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II. WHAT DOES IT INVOLVE?
Structural reform - Increasing the operational autonomy of service provider organisations. - Empowering communities to be more involved in delivering services. - Empowering individuals to understand their personal contribution to and gain from public services. - Changing models of ownership so that citizens and communities have a stake in the way a service is run. - Improving the mechanisms of accountability at the local level.
Cultural reform - Devolution of frameworks of accountability. - Motivation of communities to take up devolved power; to take over services or assets rather than have the council deliver them. - Establishment of a new culture of local democracy and social responsibility. - Change in the role of service professionals; moving from simply providing a one-off service to a passive recipient to establishing a dynamic relationship with local communities.
3 Benefits and Risks
I. PERCEIVED BENEFITS
Improved democracy Greater citizen engagement: - With democratic processes at both a local and national level. - With the process of local governance and of public service delivery.
Ideological motivation: - Conservative commitment to a smaller state. - Liberal emphasis on autonomy and self determination.
Improved services: - More dynamic, responsive public services. - Using local knowledge, and engaging communities, allows resources to be targeted where they are most needed. - Utilising the “hidden wealth” of community resources.
Political benefit: - Engaging the public in tough spending decisions arguably lessens any sense of resentment generated by the outcome.
Cost savings: - Through creating a leaner central government. - Through taking greater advantage of voluntary effort and improved links with commercial partners.
A new necessity The current financial climate dictates spending cuts:
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- Local government cannot afford the current level of service provision: Citizens may have to step into the gap.
The current system is unsustainable regardless of the current crisis: - The current crisis in public finances is a prelude to longer term pressures. - Society has to address a range of complex problems which post-war institutions were not designed to fix: chronic health conditions related to lifestyle, ageing populations, climate change and anti-social behaviour. - The traditional model of public service delivery, predicated on people passively consuming services whenever they need them, is unsustainable.
Making the most of new opportunities - Rapid technological advances. - Better informed citizens. - New rights to information.
Perceived problems with the centralised state - It does not prevent social inequalities; social outcomes of the current, standardised system vary across the country. - It fosters a culture of national standards as an instrument of control, which inhibits organisational innovation (encouraging risk aversion and establishing rigid parameters of responsibility which prevent cross-boundary collaboration).
II. PERCEIVED RISKS
Creating regional inequalities: - Reduced government capability to plan strategically and allocate resources where they are most needed.
Fragmenting society: - Encouraging citizens and community organisations to mobilise independently to find local solutions to service delivery issues. - Commitments are by nature voluntary, episodic and driven by particular interests and passions: it cannot be centrally co-ordinated.
Lack of public demand: - People do not have the time or the desire to engage, they want their councillor and the council to deliver for them. - People lack the necessary understanding of complex issues. - Councillors do not have the time, skills, or resources to support localism.
Reinforcing social inequalities:
- Groups in society without the resources to engage with public services will be disadvantaged – “The tyranny of the usual suspects”.
Increased costs:
- The cost of stimulating the market of community involvement and of supporting it may offset any savings that are realised through divestment of services and assets. - Reduced possibility of maximising economies of scale.
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Political costs: - Without devolution of accountability, politicians are liable to being held to account for the quality of services over which they have no control.
In defence of centralism: - Fair distribution of wealth and resources across regions can only be achieved from a strong central position. - Only the centre can be strategic, take clear decisions about spending priorities and generate efficiencies.9
4 Some issues for debate
What does localism mean for the state? - Should the state act more as an enabling framework than as a service provider? - Should the state hold strategic control over national policy delivery and service provision?
Is there a limit to effective localism?
Is the doctrine of ministerial responsibility too deeply engrained in the public consciousness to allow for the devolution of accountability? - Research suggests that when devolution to an elected body is clearly defined and well communicated then public perceptions of accountability will also shift. This is true in the case of the Scottish Government and the Mayor of London in certain policy areas, particularly transport. - Can the media and opposition parties accept that responsibility rests at the local level?
Given the tendency to hold ministers accountable for all aspects of public service performance is it really possible for government to ‘let go’ in our centralised political culture?
Does there exist a zero sum game between localism and central control?
Are British communities unified enough to effectively deal with greater control?
5 Current proposals for change
The Localism Bill
1 LOCAL GOVERNMENT:
I. General Powers of Authorities
- Local Authorities (LAs) given a ‘general power of competence’ (they may do anything that an individual may do, other than that which is specifically prohibited). - The Secretary of State (SoS) can restrict the circumstances in which the general power can be used, as long as there is consultation with the LA and representatives of local government beforehand.
9 Walker, David 2002 In Praise of centralism: A critique of the new localism
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- Fire and rescue authorities given a general power of competence and the authority to charge for services without an enabling statutory instrument. Specification of charges must follow consultation and cannot exceed the cost to the authority of the specific action taken.
o New Section 12 (included by amendment): - The Secretary of State is given the power to remove or to change statutory provisions that prevent or restrict the use of the general power of competence. - This power will be restricted to ensure that the use of the provision is proportionate to the policy objective intended, and that there is a fair balance between the public interest and the interests of any person adversely affected.
II. Local Authority governance arrangements
- LAs can choose their own governance system - An authority may decide that full council will discharge all of its functions or decide to delegate certain functions to a committee, sub-committee or officer. - To change governance arrangements an LA must: make a resolution, inform local electors of the proposed change, and in some cases hold a referendum. - The SoS is given power to specify any functions which may not be delegated and which must be exercised by the full council. - The SoS is given power to prescribe by regulation new forms of governance arrangements. - LAs may discharge their functions jointly with other authorities.
III. Elected mayors
- Provides for the creation of directly elected mayors, subject to confirmatory referendums, in LAs specified by order of the SoS. - In 12 cities (including Birmingham, Manchester, Bradford, Leeds and Sheffield) mayoral referendums will be held on local Election Day in May 2012. - For those who vote in favour, mayoral elections will be held on local Election Day in May 2013 using the Supplementary Vote. Mayors will be elected for four-year terms. - Their precise powers are not detailed. - The SoS has the power to: - trigger a mayoral referendum. - order an LA to transfer the duties of any public bodies onto elected mayors.
o An original provision giving the SoS the authority to create Shadow Mayors during the transition to an elected mayoral system was removed from the Bill by amendment, as was the provision giving an elected mayor the power to take on the chief executive function of their local council.
IV. Local Authority pay accountability
- Councils will be required to prepare senior pay policy statements from 2012-13. - Necessary considerations: level of remuneration of each chief officer, the use of performance related pay and any applicable bonuses.
o By amendment, a relevant authority’s obligation to prepare and publish “Senior Pay Policy Statements” has been replaced by an obligation to prepare and publish “pay policy statements”. These must detail the LA’s approach to the remuneration of their lowest paid staff and the relationship between the remuneration of chief officers and the rest of the workforce.
2 EUROPEAN UNION FINES
- The SoS may require any local or public authority to make a payment in respect of any European Court of Justice financial sanction imposed on the UK.
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- Process: the SoS must publish a statement of policy indicating the requirements by which the authority must make payments, as well as a determination of the amounts required to be paid. Before any authority becomes liable for the relevant amount, the SoS must publish a warning notice against which the authority can appeal.
o By amendment: - the SoS is required to undertake a process of parliamentary designation via both Houses should they wish to “pass on” an EU fine to a council. - By amendment, An independent panel will scrutinise decisions (consisting of one or more experts appointed by the SoS and others nominated by interested groups).
3 COMMUNITY EMPOWERMENT
I. Local referendums
- Individuals, councillors and councils given the power to instigate a local referendum on any local issue. - An LA must hold a local referendum in the event of one of the following: - Receipt of a valid petition from local people (5% of the local electorate) - A request from one or more members of the LA - A resolution by the LA - The SoS has an order making power to raise or lower the threshold for a valid petition. - The LA may determine that it is not appropriate to hold a referendum if the petition does not relate to local matters (i.e. to the economic, social, or environmental well-being of the area in which the referendum is to be held). - Referendums will be non-binding, though LAs and other public authorities will be required to take the outcomes into account in decision making.
o By amendment, LAs given greater discretion not to hold a referendum where: - The cost of holding the referendum is more than 5% of the council’s council tax requirement; or - The referendum matter has been the subject of previous referendums within the previous four years; or - The referendum relates to a matter subject to other statutory consultation processes and for which there is a right to review or appeal.
o By amendment, where a “London wide referendum” is called, in addition to meeting the threshold of 5% of the electorate of London, a petitioner is required to show there is support of 1% or more of the electorate in each of London’s boroughs.
II. Council tax referendums
- Local electorates given the power to approve or veto excessive council tax increases by means of a referendum. - If successful, the council must prepare substitute calculations which are not excessive. - Any LA setting an increase above a threshold proposed by the SoS and approved by the Commons will trigger a referendum of all registered electors in their area. - The SoS can specify circumstances where an authority would not have to hold a referendum, such as if a council couldn’t discharge its functions properly without an increase in council tax.
o By amendment, LA’s given permission to exclude the following from calculations of whether a council tax increase is excessive: - Extraordinary expenditure separately approved by the electorate in a local referendum - Levies issued to local authorities by levying bodies
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III. Community right to challenge
- A community right to challenge introduced for services run by Local Authorities. - Community bodies, parish councils and employees of relevant authorities can make an “expression of interest” (EOI) to run the service provided of a relevant authority. - If the EOI is accepted, the LA must carry out a procurement exercise for the service. Acceptance must be based on the social, economic and environmental well-being of the area. - The SoS may specify any services which are excluded from this right to challenge.
IV. Assets of community value
- LAs will be required to maintain a list of community assets within their area. - Valuable asset criteria include ownership or occupancy of the land, its use, whether there are strong feelings about it in the community, and whether there are any restrictions on it. - The list of assets must be published and made publicly available. - This provision ensures that community groups can nominate land which they deem of ‘community value’. If that land is offered for sale, the owner cannot sell for a determined period, in order to permit the community to establish a bid.
4 PLANNING
I. Plans and strategies
- The primary legislation which sets the basis for Regional Spatial Strategies (RSS) (bodies which provide a regional level planning framework for the regions of England outside of London) is removed. - A duty to cooperate on local planning authorities and other bodies in relation to sustainable development is introduced. - A local planning authority or any other relevant body or person must cooperate with other similar bodies and people to maximize sustainable development and the use of land in connection with strategic infrastructure.
o By amendment, the duty to cooperate on planning issues is strengthened to include the Homes and Communities Agency, transport bodies, the Mayor of London and Natural England.
II. Community infrastructure
- The Community Infrastructure Levy (CIL) will be retained (allows LAs to put a levy on new development in order to contribute to new infrastructure). - Three major changes are made to the CIL: - Establishes that some of the funds must be passed to areas where development has taken place; - Clarifies that funds can be spent on the ongoing costs of infrastructure as well as the initial costs of new infrastructure; - Gives LAs greater control over setting charging levels. - The Infrastructure Planning Commission will be abolished and replaced by the Major Infrastructure Planning Unit (returning decisions on nationally significant infrastructure projects from quangos to the SoS).
III. Neighbourhood planning
- Neighbourhood development plans established to permit local residents (joined together to form neighbourhood forums) to contribute to the formal planning framework of their local area. o By amendment, the minimum number of people required to establish a neighbourhood forum has been raised from 3 to 21. http://www.re-constitution.org.uk
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o By amendment, LAs given the authority to remove the designation of a forum if it fails to meet the conditions and criteria set out in the Bill. o By amendment, in areas designated as “business neighbourhoods”, ratification of neighbourhood development plans requires a local referendum to demonstrate majority support from both local residents and local business rate tax payers. - The SoS may provide financial assistance for the purpose of publicising or promoting the neighbourhood development plans, or for the purpose of assisting anyone to make proposals for such plans.
5 HOUSING
I. Allocation and homelessness
- LAs will determine who should qualify for their housing waiting list, though the rules on eligibility will continue to be set centrally. - LAs will be able to fully discharge the main homelessness duty by arranging an offer of suitable accommodation from a private landlord, without requiring the applicant’s agreement.
II. Social housing tenure reforms
- Every local housing authority will be required to publish a tenancy strategy and make provision for local housing authorities and Private Registered Providers (social landlords) to offer flexible tenancies for new social tenants. - Instead of lifetime tenancies, LA landlords will be able to grant tenancies for a fixed length (the minimum being 2 years). These ‘flexible’ tenancies are thought to give more freedom to local authority landlords and ensure that the occupation of social housing better reflects actual need.
III. Council Housing Finance - The central Housing Revenue Account Subsidy System will be abolished and a local self- financing system will be introduced. - LAs will be able to operate a Housing Revenue Account to keep the rent received from their tenants to use locally. - To achieve this, a one-off payment is authorised between Central Government and each LA, with the aim of allowing each to support its own stock and housing debt from their own income in the future.
6 LONDON
I. Housing and Regeneration - The Greater London Authority (GLA) is currently prohibited by section 31 of the Greater London Authority Act from incurring expenditure on housing and education services. The Localism Bill removes that prohibition in respect of housing expenditure and permits education expenditure limited to sponsoring academies. - Subject to permission from the Secretary of State, the GLA is permitted to compulsorily acquire land for housing and regeneration purposes. In London, - The exercise of the functions of the Homes and Communities Agency in London (made under the Housing and Regeneration Act 2008) are transferred to the GLA. - The London Development Agency will be abolished. The duty to prepare and publish an economic development strategy for London is transferred to the Mayor. The strategy must contain an assessment of the economic conditions and proposals for the economic development of London.
II. Mayoral development - A new power, to designate any area of land as a “Mayoral development area” (“MDA”), is introduced. http://www.re-constitution.org.uk
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- The power may be exercised, after consultation, where the Mayor considers a designation to be expedient for furthering the GLA’s principal purposes of promoting economic development and wealth creation, promoting social development and improving the environment. - When an area has been designated as an MDA, the SoS must, by order, establish a Mayoral Development Corporation for the purposes of securing regeneration of designated areas within Greater London.
III. London Governance Reform - A number of changes are introduced to the detail of the GLA’s governance framework, including: - a power for ministers to delegate certain non-legislative functions to the Mayor; - the consolidation of the current 6 environmental strategies into one “London Environmental Strategy” and the repeal of the duty to publish a 4 year report on the state of the environment; - the introduction of a veto over strategy proposals by the Mayor, triggered by a two thirds majority of opposition in the Assembly.
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