CABINET – 12TH JUNE 2002

REPORT OF THE CHIEF EXECUTIVE

REVIEW OF PART OF THE BOUNDARY BETWEEN THE COUNTY OF , THE COUNTY BOROUGH OF AND THE COUNTY OF IN THE AREA OF CWMTWRCH:

Purpose of Report:

To advise Members of the intention of the Local Government Boundary Commission for to undertake a Review of part of the Boundary between the County Borough of Neath Port Talbot and the Counties of Carmarthenshire and Powys in the area of Cwmtwrch.

Background:

The issue of the boundary in this area was first raised in 2000, along with the question of the boundary between Carmarthenshire and Neath Port Talbot at Lower Brynamman, Gwaun-cae-Gurwen and Ystradowen. In September 2000, the then Strategic Resources Board resolved as follows:-

“(a) that a review of the boundary between Carmarthenshire and Neath Port Talbot at Lower Brynamman, Gwaun Cae Gurwen and Ystradowen be not supported;

(b) that the question of a review of the boundary between Powys and Neath Port Talbot at Lower Cwmtwrch be regarded as a matter for determination by the Boundary Commission (NOTE: If there is a review here, then there should be effective public consultation, and that very careful consideration would need to be given to the position of the Gurnos Industrial Estate).”

The Local Government Boundary Commission for Wales has now indicated that it has been decided to conduct a review of the boundaries between the County of Carmarthenshire, the County of Powys and the County Borough CAB-120602-REP-CE2 1 of Neath Port Talbot in the area of Cwmtwrch. The local Members for the area and other Directorates of the Authority have been consulted regarding the proposed review.

There is no indication at the present time that the Boundary Commission will be taking any action with regard to the boundary in the Upper Amman Valley.

The present situation:

1. Lower Cwmtwrch:

General:

It is widely acknowledged that the boundary in the area of Lower Cwmtwrch is complex, and particularly as it affects Bethel Road and Heol Twrch where the properties are split between Neath Port Talbot and Powys. The boundary currently follows the route of a water supply ‘feeder’ which crosses and runs alongside Bethel Road.

In addressing the general issues surrounding the proposed review, the following matters require consideration:-

 The current boundary is familiar and long established.  There is experience of cross-boundary service delivery arrangements which could be further enhanced through discussion and agreement as appropriate. Indeed, it is incumbent on all local authorities to fully consider how boundary areas can be served more effectively.  Previous potential concerns over school catchment areas in the different counties are less relevant as cross-boundary preferred placements are now common.  Although there is a difference in Council Tax levels between Neath Port Talbot and Powys, this should not necessarily be seen as a permanent feature and could serve to strengthen Neath Port Talbot representations to change the local government funding formula in order to move towards Council Tax equalisation.  Any suggestion to make the river, Afon Twrch, the new boundary would still leave parts of the village within Neath Port Talbot and therefore would not resolve all the issues of concern.  The Division of Neath Port Talbot has recently been designated a Communities First area. This includes the part of Lower Cwmtwrch which is within Neath Port Talbot, but the remainder of CAB-120602-REP-CE2 2 Lower Cwmtwrch in Powys is not a Communities First area. The whole of Lower Cwmtwrch could in fact benefit from community-based Communities first projects, but that would not be possible unless a substantial part of the village remained in the Ystalyfera Division.  Cwmtwrch is a valued community within Neath Port Talbot. It is largely Welsh speaking and makes a valuable contribution to the linguistic and cultural heritage of the County Borough.  Should the boundary be adjusted to take any part of the area into the County of Powys, then Objective 1 support would be affected.

Gurnos Industrial Estate:

A vital factor to bear in mind in the Lower Cwmtwrch area is the Council’s Gurnos Industrial Estate which is located on Bethel Road. The first phase of this Industrial Estate was developed by the former Lliw Valley Borough Council in 1995/1996. The second phase was completed in 2000, and now comprises a total of six x 100 square metre units. The existing six units have proved to be popular and are currently occupied, providing income to the Authority.

There is now full planning permission and the support of the Objective 1 Local Partnership for a third phase of development that will involve the construction of a block of four x 232 square metre energy-efficient units, and extension of the existing site access road and the provision of mains drainage to the site. Applications are about to be submitted to develop phase three with funding under Priority 1 Measure 5 of Objective 1 and the Authority’s allocation of LRF match funding. Any proposed change in the boundary could take the Industrial Estate into Powys and out of the Objective 1 area.

2. Upper Cwmtwrch:

While there are some anomalies with regard to the boundary between Carmarthenshire, Neath Port Talbot and Powys in the Upper Cwmtwrch area, there is minimal effect with regard to Neath Port Talbot. However, any significant realignment of the boundary in Lower Cwmtwrch could impact on the boundary in Upper Cwmtwrch.

CAB-120602-REP-CE2 3 Consultation:

The proposed review will be the subject of wide consultation by the Local Government Boundary Commission, which will include the residents and Community Councils in the area, and it is suggested that any change to the boundary in the area should particularly take into account local views.

Appendix:

Map indicating the existing boundary and the extent of the proposed boundary review.

Recommendation:

While it is recognised that anomalies exist with regard to the boundary in the area of Cwmtwrch, any review of the boundary which would affect the Gurnos Industrial Estate be opposed, and that the Local Government Boundary Commission be requested to ensure that the views of residents in the area are taken into account.

Further, if the Local Government Boundary Commission for Wales proposes to re-align the boundary in the area of Cwmtwrch, that consideration be given to the boundary following the main highway through the village.

Reasons for Proposed Decision:

The primary concern is for the further development of the Gurnos Industrial Estate and the future economic prosperity of the community which, being located in Neath Port Talbot, enjoys the benefits of Objective 1 status and provides much needed employment opportunities in the area. Should a re- alignment of the boundary occur which may cause the Industrial Estate to fall within Powys County Council, then Objective 1 status would be lost. In addition, Neath Port Talbot County Borough Council, and its predecessor authorities, have made substantial investments in the development of the Industrial Estate and applications for further Objective 1 and LRF match funding are currently being pursued.

CAB-120602-REP-CE2 4 COMPLIANCE STATEMENT

REVIEW OF PART OF THE BOUNDARY BETWEEN THE COUNTY OF CARMARTHENSHIRE, THE COUNTY BOROUGH OF NEATH PORT TALBOT AND THE COUNTY OF POWYS IN THE AREA OF CWMTWRCH:

(a) Implementation of Decision:

The decision proposed is an Urgent one for immediate implementation given that a response is required by the Local Government Boundary Commission by the 10th June, 2002.

(b) Sustainability Appraisal:

Community Plan impacts Economic Prosperity - positive/negative - see text of report Education & Lifelong Learning - no impact Better Health & Well Being - no impact Environment &Transport - no impact Crime & Disorder - no impact

Other Impacts Welsh Language - no impact Sustainable Development - no impact Equalities - no impact Social Inclusion - no impact

(c) List of Background Papers:

Letter from the Local Government Boundary Commission for Wales dated 29th April, 2002.

(d) Officer Contact:

Peter Davies, Administration and Electoral Services Manager. Tel: 01639-763323. E-mail: [email protected]

CAB-120602-REP-CE2 5

CABINET – 12TH JUNE 2002

REPORT OF THE CHIEF EXECUTIVE

WELSH ASSEMBLY GOVERNMENT POLICY STATEMENT – FREEDOM AND RESPONSIBILITY IN LOCAL GOVERNMENT

Purpose of Report:

To advise Members of the Welsh Assembly Government consultation paper, ‘Freedom and Responsibility in Local Government’, and to note the response made on behalf of the Council.

Background:

This Consultation Paper published by the Welsh Assembly Government addresses the Assembly’s vision for Local Government in Wales in the context of:-  Clear leadership for communities  Delivery of high quality services for local communities  Local government which is open, accessible and accountable.

A summary of the consultation paper is attached as an appendix.

In view of the limited time available for responding to the paper, a response in the Council’s name has already been sent to the National Assembly. This response is also attached as an appendix.

Appendices:

Appendix A – Summary of Welsh Assembly Government Policy Statement – Freedom and Responsibility in Local Government.

Appendix B - The Council’s response to the National Assembly.

CAB-120602-REP-CE2 1 Recommendation:

That the Council’s response to the Welsh Assembly Government’s Policy Statement – Freedom and Responsibility in Local Government be noted.

CAB-120602-REP-CE2 2

COMPLIANCE STATEMENT

1. WELSH ASSEMBLY GOVERNMENT POLICY STATEMENT – FREEDOM AND RESPONSIBILITY IN LOCALGOVERNMENT

(a) Implementation of Decision:

The decision is to note the matter, and refer to the Policy and Resources Overview and Scrutiny Committee for information.

(b) Sustainability Appraisal:

Community Plan impacts Economic Prosperity - no impact Education & Lifelong Learning - no impact Better Health & Well Being - no impact Environment & Transport - no impact Crime & Disorder - no impact

Other impacts Welsh Language - no impact Sustainable Development - no impact Equalities - no impact Social Inclusion - no impact

(c) List of Background Papers:

Welsh Assembly Government Policy Statement – Freedom and Information in Local Government.

(d) Wards Affected: ALL

(e) Officer Contact:

Peter Moran, Head of Member Support/Committee Services. Tel: 01639-763303. E-mail: [email protected]

CAB-120602-REP-CE2 3 Appendix A

FREEDOM AND RESPONSIBILITY IN LOCAL GOVERNMENT

Summary of National Assembly conclusions/proposals. Any observations sought by the 17th May, 2002.

References to specific paragraphs on which views are sought are highlighted in bold italics.

1. A VISION FOR LOCAL GOVERNMENT:

The Welsh Assembly Government vision for local government is of local authorities which:

 provide clear leadership for their communities  deliver and secure high quality services for their local communities  are open, accessible and accountable.

The Welsh Assembly Government will work with the Welsh Local Government Association and with the research community to develop arrangements for the long term evaluation of the impact of the policies set out in this document.

2. COMMUNITY LEADERSHIP BY LOCAL GOVERNMENT:

The Welsh Assembly Government will continue to monitor, via the Voluntary Sector Partnership Council and Policy Agreements, progress in developing strong local partnerships between local authorities and the voluntary sector on the basis of local Compacts.

The Welsh Assembly Government will make available, through an interactive web site, a library of advice and examples of good practice relating to community strategies.

They will also continue to promote the exchange of good practice through a series of regional, cross-sectoral workshops on community strategies and provide support for related training and development.

The Welsh Assembly Government will take further steps to ensure that Assembly Sponsored Public Bodies and NHS bodies in Wales play their full part in supporting community strategies.

CAB-120602-REP-CE2 4

3. WORKING TOGETHER FOR BETTER SERVICES:

The Welsh Assembly Government will strengthen procedures to ensure that its emerging strategic policies and approaches recognise the role of local authorities as the local democratic bodies with extensive knowledge and understanding of their areas.

The Welsh Assembly Government will work with the Department for Transport, Local Government and the Regions in taking forward legislation under Section 16 of the Local Government Act 1999 to remove legal obstacles to local authorities achieving continuous improvement.

The Welsh Assembly Government intends to consult on which authorities should have the power to grant indemnities, the circumstances in which it should be used and to which members and officers it should apply.

The Welsh Assembly Government will discuss further with the Welsh Local Government Association the case for extending this support in order to provide local government with an enhanced capacity to highlight and promote the exchange of good practice.

The Welsh Assembly Government will pursue with the Welsh Local Government Association the strengthening of both strategic and practical support for the training and development of leaders, managers and staff.

They will shortly bring forward an Order on workforce matters in local government contracting and associated statutory guidance.

The Welsh Assembly Government will provide additional capital resources of £9.7 million in 2002-03 and 2003-04 in the form of supported credit approvals to local authorities to invest in e- government.

The Welsh Assembly Government will develop national medium term objectives for electronic service delivery at local level, as part of this overall strategy which will also identify common technical standards essential to joint working.

CAB-120602-REP-CE2 5

4. CUTTING RED TAPE FOR LOCAL GOVERNMENT:

The Welsh Assembly Government is committed to moving towards a more coherent policy and planning framework for local authorities which respects the role of local government.

The Welsh Assembly Government will conduct a further review of all specific grant schemes before November 2002 with the objective of transferring as many of them as possible into the general settlement and merging and simplifying those that remain. Where there is a continuing need for the Welsh Assembly Government to satisfy itself that local authorities are still pursuing the objectives of those schemes, it will seek alternative means of doing so.

The Welsh Assembly Government will report to the Partnership Council by the end of 2002 on the progress towards a more streamlined set of requirements for local authority plans. We will seek to agree further additions to the Assembly’s powers over statutory plan requirements with the UK Government where this is necessary to enable us to streamline the requirements placed on local authorities.

The Welsh Assembly Government regards Policy Agreements as the key vehicle for the development of a more strategic relationship with local government. They will begin discussions via the Welsh Local Government Association now to work with local government on the next generation of Policy Agreements, to run from 2004.

The Welsh Assembly Government will review in consultation with the Welsh Local Government Association the extant consent regimes applying to Welsh local authorities and will set out proposals in relation to each of them.

The Welsh Assembly Government will also review with local government what it has asked authorities to establish by way of partnerships in order to identify the scope for rationalising its own requirements. It will apply the same “entrance test” to proposals for new partnerships as to proposals for new plans or other structures to ensure that any new requirements are only introduced where they are necessary and have a clear relationship to existing structures.

CAB-120602-REP-CE2 6

5. DEMOCRATIC AND ACCOUNTABLE LOCAL GOVERNMENT:

The Welsh Assembly Government intends, on receipt of the recommendations of the Commission, to consult fully on their proposals before forming a view.

They will introduce revised regulations to reflect these guidelines and to enable councils to pay additional allowances to members with caring responsibilities. They will also regulate to make allowances for all county council elected members pensionable, enabling those who make the commitment to public service to contribute to their future security as they would in any other career.

The Welsh Assembly Government intends that long standing councillors will be rewarded for their service and encouraged to make way for younger representatives through the introduction of a one-off severance scheme for councillors aged 60 or over who have served for more than one term and who decide not to stand for re-election in 2004.

They will explore through the partnership councils (local government, voluntary sector and business) how to support employers in releasing employees who wish to represent their communities. They will also review the arrangements which Assembly Sponsored Public Bodies have in place for this purpose and carefully consider any recommendations on this matter put forward by the Commission on Local Government Electoral Arrangements.

The Welsh Assembly Government will work with the Welsh Local Government Association to ensure that adequate training is provided for councillors involved in the scrutiny function. They will also work with local government to ensure that adequate officer support is provided for the scrutiny function within councils.

The Welsh Assembly Government sees an important role for the audit committee in the future governance of local authorities and we will explore with local government the best ways of ensuring audit committees are developed to their full potential.

CAB-120602-REP-CE2 7

6. RESOURCING LOCAL GOVERNMENT - AN OVERVIEW:

The Welsh Assembly Government believes thepropsed changes will provide a new degree of financial freedom for local authorities, underpin the role of local authorities as community leaders and play an important part in enabling the continuous improvement of local authority services. They will continue to work in partnership with local government to deliver these reforms and build upon the existing, successful and increasingly mature relationship between the National Assembly and local government in Wales.

7. COUNCIL TAX:

The Welsh Assembly Government plan to publish the new council tax bands in summer 2003. New valuation lists will follow in late 2004, coming into force on 1st April 2005.

The Welsh Assembly Government has already effectively abolished Council Tax Benefit Subsidy Limitation.

They will seek demonstrable improvements in the economy and efficiency of operation of the present arrangements.

8. BUSINESS RATES:

The Welsh Assembly Government would welcome views on which of the options would best achieve its aim of building stronger and more productive partnership working between local government and the business community in Wales. They also welcome views on how to gain the maximum benefit from meaningful consultation between local government and business.

They will work closely with local government and business on developing the detail and shape of a rate relief scheme for all small businesses.

The Welsh Assembly Government will be seeking to secure general powers within the proposed primary legislation enabling the Assembly to specify the types and size of property to be covered by the scheme, and the amount of relief to be given.

CAB-120602-REP-CE2 8 They agree with the UK Government’s proposals to decriminalise the non-return of statutory information requested by the valuation officer, to introduce a new power to adjust the annual poundage to reflect unexpected losses in rates yield and to end prescribed rating.

They will be seeking to retain the existing power that enables the Assembly to determine whether or not to have a scheme in the light of the impact of a revaluation on business in Wales.

The Welsh Assembly Government propose to develop an incentive in the form of business rate retention for a specified period in relation to new developments. In the future they will work with local government to develop a clear framework for this proposal. In the meantime they would welcome views on what might be an appropriate broad framework for such a scheme.

9. DISTRIBUTING REVENUE RESOURCES:

The Welsh Assembly Government will consider with local government partners the possibility of limiting the variation around the average change in SSA in any one year.

The Welsh Assembly Government will explore with the WLGA what further actions can be taken to help deliver the local government revenue settlement as early as possible.

They will therefore consult on making the approval of the council tax base a function of local authority executives rather than of full council.

The Welsh Assembly Government has commissioned a research study which includes undertaking a consultation exercise with local government on the development of formulae and the use of small area (ward level) data in personal social services. This is a complex study as this service consists of many service blocks but we will implement agreed proposals as soon as possible.

They will keep the requirements for statistical information under review to ensure that no unnecessary burdens are placed upon local authority reporting systems.

To simplify the apparent complexity of the revenue system the Welsh Assembly Government propose to merge, for practical purposes within the existing legislation, Revenue Support Grant and National

CAB-120602-REP-CE2 9 Non-Domestic Rates into a single funding stream distributed through the current revenue distribution formula.

The Welsh Assembly Government will discuss with the UK Government whether there is scope to improve the current arrangements for funding the police authorities in Wales.

The Welsh Assembly Government does not intend to make such a fundamental change to the existing arrangements for funding fire services in Wales unless and until a clear consensus in favour of doing so emerges. Accordingly views are sought as to whether Welsh fire authorities should be made into precepting authorities.

The Welsh Assembly Government would welcome views on whether responsibility for capital funding of fire authorities should lie with the Assembly. Should a consensus emerge in Wales in favour of a transfer of responsibility for fire policy in addition, the Welsh Assembly Government would wish to discuss this with the UK Government.

10. CAPITAL FUNDING:

The Welsh Assembly Government supports the intention of the UK Government to legislate to introduce the prudential borrowing system for local authorities, and anticipates that there will be no major variations in the operation of the system between Wales and England.

The Welsh Assembly Government will work with local authorities to learn lessons from the operation of the scheme in the past and develop proposals for the future to improve its operation.

The Welsh Assembly Government are currently consulting separately on the issue of creating an investment framework which provides greater freedom for local authorities in their investment activities whilst stressing that with freedom comes responsibility.

Authorities with existing approved PFI schemes will continue to receive the promised level of revenue support in the new regime. The Welsh Assembly Government supports the UK Government’s intention to consider how local authority owned companies should be treated in primary legislation in England and Wales.

11. FUNDING AND ACCOUNTING FOR LOCAL SERVICES:

The Welsh Assembly Government supports the intention of the UK

CAB-120602-REP-CE2 10 Government that the prudential borrowing system will also be applied to capital expenditure within the Housing Revenue Account (HRA).

As a consequence of the HRA ring-fence, local authorities will need to set a separate limit for borrowings, supported by the Housing Revenue Account, and not include this in their general prudential borrowing limit.

Borrowing funded by HRA revenues will only be available for investment in HRA assets. Similarly HRA revenues should not be taken into account in determining prudential borrowing limits for non HRA borrowing.

The Welsh Assembly Government supports the intention of the UK Government to remove rent rebates from the HRA.

At present, authorities are required set aside a proportion of the receipts which they obtain from disposals to invest pending repayment of debt. These arrangements do not fit well under the new prudential system. The requirement for "set aside" will be abolished.

The Welsh Assembly Government will introduce a simpler method which will create a pool of receipts that can be used to fund new capital investment in council housing wherever the need is the greatest.

For authorities with debt attributable to their HRA, support for debt charges will be adjusted to reflect the proportion of receipts which the authorities are required to contribute to the redistributed pool, and

For authorities without HRA debt, a specified proportion of the HRA receipts will have to be paid into the pool.

The Welsh Assembly Government has agreed with the UK Government that there will be a separate pool for Wales.

However, the proposals to overhaul the Housing Revenue Account and its subsidy system would suggest that the introduction of a MRA in Wales should now be reconsidered. Views are invited as to whether local authorities believe that this would be an appropriate action to take. (Further details are contained in Annex A to the full document).

The Welsh Assembly Government supports the UK Government’s

CAB-120602-REP-CE2 11 intention to use s16 of the Local Government Act 1999 to introduce a general power to allow local authorities to charge for all discretionary services which they already have powers to provide, subject to such conditions and exceptions as the National Assembly may determine by regulation. They will work with the WLGA and other interested parties to help local authorities develop corporate charging policies.

The Welsh Assembly Government will also initiate a review of local authority fees and charges covering the following:

 A rationalisation of the fees and charges where levels are currently set by the Assembly, with maximum delegation to local authorities;  The development of a mechanism for the regular updating of those fees and charges over whose level it is appropriate to retain Welsh Assembly Government control.

However, the Welsh Assembly Government believes there are further initiatives which will help community councils achieve their objectives and enable better government.

They will therefore:

 Index link the limit for s137 expenditure to the Retail Price Index

 Enable community councillors to authorise payments by their council using electronic methods.

 Review the current capital borrowing approval system for community councils with a view to simplifying and improving it.

The Welsh Assembly Government will seek the power to determine whether such a provision should be implemented in Wales.

The UK Government intends to introduce primary legislation to place a duty on the local authority as a whole to monitor its finances on a regular basis and take any necessary action to prevent end of year overspends against budget. The Welsh Assembly Government will again seek the power to determine whether such a provision should be implemented in Wales.

The UK Government intends to introduce primary legislation to exempt this form of expenditure from the prohibition. The chief financial officer would be required to certify the purpose of

CAB-120602-REP-CE2 12 expenditure made in these circumstances. The Welsh Assembly Government supports this provision.

The Welsh Assembly Government therefore believes that the requirement should be for statements to be prepared and approved within three months of the year end (30 June). The date for publication of the financial statements should also be brought forward by three months. They will allow local authorities sufficient time to prepare for this change.

The Welsh Assembly Government recognises that this change is ambitious and will be difficult to implement but we will work with local government to remove barriers to the production of financial statements within this timescale and ensure that the timely production of meaningful information for local authority stakeholders is achievable.

It is recognised that there is a role for new technologies within this and the Welsh Assembly Government will work with local authorities and their external auditors to develop a protocol for the publication of financial information on the Internet.

The Welsh Assembly Government believes that the proposed changes to the local government finance system will meet the aims set out in Simplifying the System and promote responsible performance and financial management. We see these reforms as fundamental in achieving and promoting the role of local authorities as community leaders in Wales. They are also seen as a cornerstone in enabling the delivery of quality public services.

______

CAB-120602-REP-CE2 13 Appendix B

NEATH PORT TALBOT COUNTY BOROUGH COUNCIL CYNGOR BWRDEISTREF SIROL CASTELL-NEDD PORT TALBOT

RESPONSE TO THE WELSH ASSEMBLY GOVERNMENT POLICY STATEMENT:

FREEDOM AND RESPONSIBILITY IN LOCAL GOVERNMENT

1. A Vision for Local Government:

Neath Port Talbot County Borough Council fully supports the vision of the Welsh Assembly Government for Local Government in Wales, and welcomes the challenge to:-

 Provide clear leadership for the community;  Deliver and secure high quality services for the local community;  Be open, accessible and accountable.

The Council welcomes the stated objectives and obligations of the Welsh Assembly Government to work in partnership with local authorities and the Welsh Local Government Association, in order to develop arrangements for the long term evaluation of the policies contained in the policy statement.

While recognising the resource implications imposed on local authorities generally in attempting to meet the requirements of the vision for local government, the Council acknowledges the benefits of the development of the existing relationship between the Welsh Assembly Government and local government.

2. Community Leadership by Local Government:

Neath Port Talbot County Borough Council has already fully embraced the statutory duty to produce a community strategy in partnership with others having published the Neath Port Talbot Community Plan in January this year. It has also benefited from a partnership agreement, or compact, with the voluntary sector since November 1997. There are also many local examples of effective partnership working with the voluntary sector and across the statutory agencies. CAB-120602-REP-CE2 14 The Council therefore welcomes the Welsh Assembly Government’s statements and commitments regarding the community leadership role of local authorities. However, the challenge of effective partnership working cannot be underestimated, particularly in respect of the pooling of resources. Statutory agencies must continue to be encouraged in this area.

3. Working together for better services:

3.1 Wales Programme for Improvement

In its response to the draft statutory guidance on the Wales Programme for Improvement the Council welcomed the changed emphasis from considering continuous improvement for individual services to the ability and capacity of the organisation to deliver improving services. In recognising the legitimate roles of both the Assembly and local authorities in improving public services, the Council welcomed the framework approach of the Programme which allows the local authority to lead and mange change itself.

One outstanding concern remains, and that is the crucial need for the Assembly, local authorities and the Audit Commission in particular to have a common understanding of the way in which this innovative new approach to the statutory requirement to achieve best value will operate. The Assembly will need to monitor the operation of the Programme through the Partnership Council to ensure this common understanding is reached and maintained.

3.2 Working Together and Strategic Collaboration

The Council recognises the need to work together with other local authorities and other public bodies in terms of strategic approaches in some areas of service and policy. It already does so in the examples given in the policy statement, e.g. transport.

However, given the geographical size of Wales and the small number of local authorities, the number of issues that require strategic regional approaches must be limited. Whenever possible the Assembly must endeavour to set out the national policy context within which local authorities can deliver local solutions, working with other local authorities, or others, when it is seen to be in the interests of the communities they serve.

CAB-120602-REP-CE2 15

The Assembly must not create regional structures for the sake of administrative or policy convenience. The Assembly’s commitment to strengthen its procedures to ensure its strategic policies recognise the role of local authorities as the local democratic bodies will help in this regard.

3.3 Economies of Scale and “Joined-up” Services

The Council recognises the benefits to be achieved through joint working and already does so in a number of service areas. Improvement and review work emerging from the Wales Programme for Improvement will identify opportunities in the future. However, the focus will remain on what arrangements result in the best service for the public within the context of efficiency, effectiveness and economy.

The Council welcomes the Assembly’s commitments to remove legal obstacles to continuous improvement and to examine the question of indemnities for members and officers.

3.4 Support

The Council welcomes the support being provided by Local Government Data Unit Wales, the newly established Equalities Unit and the proposed Procurement Unit. The management of these support units through the Welsh Local Government Association will facilitate the sharing of good practice amongst local authorities across Wales. It is particularly welcome that the Assembly has committed significant funding over three years to establish these support units, over and above the local government settlement. However, the Council would not wish the burden of future funding to fall local authorities and the Assembly should seek early agreement with local government on funding beyond 2005.

The Council is committed to training and development for its elected members, its managers and its staff. The Assembly’s commitment to strengthen its support at both the strategic and practical levels for this important work is supported.

The Council fully supports the provision by the Welsh Assembly Government of joint funding for the development of a Public Sector Manager’s Initiative in Wales.

CAB-120602-REP-CE2 16

3.5 Safeguarding Fair Employment

The Council welcomes the Assembly’s intention to reduce the restrictions on matters that can be taken into account when inviting companies to tender for the provision of goods and services.

3.6 Better Services through E-government

The Council supports the Assembly’s and local government’s joint vision on e-government and has submitted its first “Implementing Electronic Government” statement. The Council also acknowledges the Assembly’s need to develop medium term objectives for electronic service delivery at the local level. However, local authorities must be allowed to participate in this work and be consulted prior to the objectives being finalised.

The Assembly’s allocation of additional capital resources local authorities over the next two years is welcomed. But the Assembly must not underestimate the resources required, both human and financial, to deliver e-government solutions over the next few years. The medium term objectives referred to above must be accompanied by realistic assessments, and allocations, of the resources needed to meet local targets. There is also the need for a strategic approach in developing a National System of ICT based on broadband and other developing technologies.

4. Cutting Red Tape for Local Government:

The Assembly’s proposals to rationalise the current complex statutory planning requirements it places on local authorities is a positive step forward. The proposals to review specific grant schemes, consent regimes and statutory partnership requirements are also welcomed.

The long term view that community strategies, improvement plans and policy agreements should form the basic policy planning framework is supported. It is considered important that future strategies and agreements reflect local priorities in specific areas, rather than running parallel, or indeed in addition to, those laid down by Welsh Assembly Government departments. It is crucial that local authorities themselves, as well as the Welsh Local Government Association, are involved in the development of this framework and the ongoing rationalisation of the Assembly’s planning requirements.

CAB-120602-REP-CE2 17

5. Democratic and Accountable Local Government:

5.1 The Starting Point:

The Council agrees that, in order to earn the respect of the community it serves, it must be seen as democratic, and open. The principles contained in the Local Government Act, 2000 have been embraced by the Council, including the introduction of the ethical framework as prescribed by the Welsh Assembly Government.

5.2 Accountability at the Ballot Box:

The Council supports any moves to increase voter turn-out at local and national elections at which, it is recognised, there has been an apparent lack of interest in the democratic process. The Council is of the view, however, that it is politics and issues which have the main effect on voter turn-out at elections, and not technical changes to voting systems – although the Council is prepared to consider innovations in voting methods.

On other electoral issues, it is the Council’s strongly held view that:-

 the term of Office for Councillors should remain at four years, in order to offer stability and continuity;  the choice of electing the whole Council, or part of the Council, should be a discretionary option for each Local Authority to determine, especially where the local Council has procedures in place for listening to, and consulting with, the electorate through surveys or other means;  annual elections are not supported because:

 annual elections can further dilute public interest and create voter fatigue;  annual elections will be more costly and place a further burden on local authority finances;  the requirement for part of the Council to retire on an annual basis can discourage forward planning by the local authority;

CAB-120602-REP-CE2 18

 there should be no reduction in the number of local authority elected Members. The diverse nature of a local authority area, together with the concentration of its population should be the criteria used to determine the number of elected representatives;  having given detailed consideration to the various electoral systems, there should be no change from the existing ‘tried and tested’ electoral system of “First Past the Post”.

The Council is keen to engage young people in the democratic process, and already has an established Youth Forum. The Council supports the reduction of the voting age to 16.

5.3 Representative Democracy:

The Council has accepted, and adopted, the principles contained in the report of the University of Birmingham’s Institute of Local Government report ‘Recognising Councillors Worth’ as a means of fairly rewarding elected members for the role they perform. It is hoped that the principles of the report will encourage representation from a wider section of the community.

The proposal for a severance payment is accepted as a means of addressing the imbalance in the age profile of Councillors. However, it is felt that the arrangement should be extended beyond the 2004 local authority elections.

The Council shares the view of the INLOGOV Report that a means of encouraging employers to release their employees to serve as Councillors should be addressed. The Council welcomes the proposal to explore this issue through the Partnership Councils.

The Council supports the provision of adequate training for Councillors. Particularly in the new modernised local authority structures.

5.4 Audit Committees:

The Council has already established an Audit Committee, and this will continue under the new Executive arrangements of the Authority.

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6. Resourcing Local Government - An Overview:

The Policy Statement says that “The new formula is widely accepted as fairer and more rational than its predecessor.” However, Neath Port Talbot does not accept that there is widespread support for the enormous range of council tax bills across Wales with some of the poorest areas suffering band D bills in excess of £1000, whilst bills in more affluent parts of Wales, for similarly banded properties are below £600.

It is also stated that “In September 2000 we published a consultation paper, Simplifying the System, which put forward a range of ideas for improving local government finance, and making it less complicated.” It is considered that there is no advantage in having a simplified system if it makes it less fair and particularly to the poorest areas. A fair but complicated system must be preferred.

The Statement goes on to say that “The Welsh Assembly Government believes these changes will provide a new degree of financial freedom for local authorities…….” The Council’s view is that it is of no benefit merely to replace one set of rigid controls with another. Financial freedom for local authorities must mean that.

7. Council Tax:

(i) Neath Port Talbot supports the commonly held view that the tax is too regressive with the highest level of tax being only 3 times as much as the lowest, even though homes could be worth at least 8 times as much. An increase in the ratios above 3 is therefore recommended. Consequently adding bands at both the lower and upper ends of the scale should be considered as well as amending the ratios between them.

(ii) A more even distribution of properties within the bands together with using a band A or B figure in national and local publicity rather than band D figures should also be investigated.

(iii) A new valuation list to take effect from 1.4.05 is also supported as is a commitment to hold regular revaluations. The Welsh

CAB-120602-REP-CE2 20 Assembly Government suggestion of 8 years is perhaps the longest acceptable period.

(iv) Neath Port Talbot supports the principle of involving the electorate in formulating its strategies including in particular its budget and council tax setting strategies.

(v) There appears to be unanimous support including Neath Port Talbot from all quarters to abolish the Council Tax Benefit Subsidy limitation scheme.

(vi) On the question of Valuation Tribunals, the Council would support the ‘status quo’ with local councillors being appointed as Members of the appropriate Tribunal as is currently the case.

8. Business Rates:

(i) Neath Port Talbot continues to support the full return of Business rates to local government control. Pending this outcome, the ability for Councils to vary, both upwards and downwards the rate locally would be welcomed. Any changes would need to be large enough to have the desired impact and not to cause an inefficient and costly administrative overhead.

(ii) The distribution of revenue support grant would need to take into account the “potential” business rates income for each council and would also need to provide some form of safety net to guard against dramatic rateable value reductions which occur from time to time in the large industrial premises.

(iii) Business improvement districts are supported as are voluntary partnership arrangements and both options should be explored further.

(iv) A rate relief scheme to assist small businesses is supported to operate alongside but not in place of the rural rate relief scheme. The type and size of properties receiving support under the rural rate relief scheme may not be the same range of properties which should receive support under a small businesses relief scheme.

(v) Neath Port Talbot believes that a transitional scheme should be a permanent feature of business rate revaluations in order to

CAB-120602-REP-CE2 21 prevent excessive increases or reductions in annual rates bills. However the threshold should be “adjustable” annually by the Welsh Assembly Government.

(vi) Incentives to encourage local authorities to attract new businesses and incentives for new businesses for relocating to Wales should be available at the discretion of local authorities.

9. Distributing Revenue Resources:

(i) Neath Port Talbot still supports unhypothecated funding including pre 16 education and wishes to see the reduction of specific grant schemes by way of their absorbtion into mainstream funding.

(ii) The distribution of any new Welsh Assembly Government support for service enhancements must not discriminate against those authorities who provide those enhanced services already. A proportionate, formula based allocation must therefore be provided to all authorities.

(iii) Although Neath Port Talbot supports a formula driven approach to the distribution of revenue support grant it does not accept that the current distribution of Welsh Assembly Government financial assistance produces fair and equitable levels of Council Tax across Wales.

(iv) The long identified problems of excessive and discriminatory gearing must be solved. This was an issue addressed by the Swansea University/Pion Economics report and unanimously endorsed by all 22 local authorities.

(v) The “tax taper” scheme currently the subject of separate consultation is one method of reducing the gearing rate and its discriminatory effects. This must be supported but at a significantly higher level than currently proposed in order to have the desired impact.

(vi) Neath Port Talbot believes that a “concensus” view will never solve the current financing problems of Welsh Local Government. The Welsh Assembly Government must show strong leadership and introduce corrective measures even if they

CAB-120602-REP-CE2 22 cause tensions for some authorities who may lose from their current advantageous positions.

(vii) In order to aid medium to long term financial planning a more stable, predictable level of Welsh Assembly Government support needs to be delivered. This could mean limiting the annual impact of SSA changes due to formula or data changes.

(viii) The measures to shorten the annual “settlement” process are welcomed and in particular the setting of the Council Tax base by executives rather than full council is a practical step to aid the process.

(ix) “To simplify the apparent complexity of the revenue system we propose to merge, for practical purposes within the existing legislation, Revenue Support Grant and National Non-Domestic Rates into a single funding stream distributed through the current revenue distribution formula. This simplification will have no effect on the total amount of financial support from the Assembly or on the share of it received by individual authorities."

This change should be resisted in order to maintain the transparency of the distribution of business rates and the ability to amend the system to allow for local discretion.

(viii) There is no doubt that the financing arrangements for the Police and Fire Service including capital, revenue, specific grants, PFI support etc. result in a complex and confusing situation which is not well understood by professionals and members let alone the general public. Rationalisation of financial responsibilities between the Home Office, DETR, Treasury and the Welsh Assembly Government is essential.

(ix) There do not appear to be any overriding advantages in changing the Fire Authority from a levying body to a precepting body like the police.

10. Capital Funding:

(i) Neath Port Talbot is very supportive of the moves to abolish the currently extremely complex capital regulations. However the Welsh Assembly Government should not rule out the

CAB-120602-REP-CE2 23 possibility of significant differences between the Welsh and English systems.

(ii) The “prudential code” must not become another technically based beraucratic set of complex rules merely replacing the current system. A simple, understandable system with clear lines of accountability is essential.

(iii) Separate prudential borrowing systems for the General Fund and Housing Revenue Account are required.

11. Funding and Accounting for Local Services:

(i) Neath Port Talbot opposes the principle of any form of pooling of council house rents or capital receipts but it strongly supports the principle of the redistribution of Welsh Assembly Government financial support to those areas of greatest need.

(ii) Housing Benefits must be removed from HRA’s.

(iii) The power to charge for discretionary services is supported however, the blanket argument for having nationally set charges for mandatory services has not been won, and each case should be considered on its merits.

(iv) The arrangements outlined within the section “Financial and Performance Monitoring” are supported in full.

(v) Neath Port Talbot does not believe it is practical nor achievable to prepare the financial statements for the authority by the 30th June in any year under the current accounting rules and regulations. A one month acceleration from the existing timescales should be piloted in the first instance to identify specific problem areas which need resolution.

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Annex A - Future Funding arrangements for Housing:

While welcoming the removal of the Benefit calculation from the Housing Revenue Account, concern has to be expressed regarding the arrangement which the Assembly then intends to put in place in order to balance their budget.

Because aspects have to be seen as a whole, there is insufficient detail to be able to reach a conclusion as to what the impact of the establishment of the new Subsidy / MRA system will have on the Authority.

It is clear that one of the main reasons for establishing the new system is to ensure the continuity of Assembly control on Council Housing rents and finances.

The establishment of the MRA may well have an adverse affect on the Disabled Facilities Grant Expenditure if the Assembly recovers its financing gap through reduction in the Council’s Capital allocation.

The new system will require the transfer of finances from some authorities to others by means of a new formula. Due to the lack of detail, the impact on Neath Port Talbot cannot presently be ascertained.

If there is no new finance available as a result of these changes, then the reason for their introduction on an all Wales bases is questionable.

Once detailed discussions of the new system are established, one of the outcomes could be that Neath Port Talbot is a loser under any new formula.

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