House of Commons ODPM: Housing, Planning, Local Government and the Regions Committee ODPM Annual Report and Accounts 2003 First Report of Session 2003–04 Volume I Report, together with formal minutes, oral and written evidence Ordered by The House of Commons to be printed 9 December 2003 HC 102-I Published on 17 December 2003 by authority of the House of Commons London: The Stationery Office Limited £14.50 The ODPM: Housing, Planning, Local Government and the Regions Committee The ODPM: Housing, Planning, Local Government and the Regions Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Office of the Deputy Prime Minister and its associated bodies. Current membership Mr Andrew Bennett MP (Labour, Denton and Reddish) (Chairman) ‡ Mr John Bercow MP (Conservative, Buckingham) ‡ Sir Paul Beresford MP (Conservative, Mole Valley) ‡ Mr Clive Betts MP (Labour, Sheffield Attercliffe) ‡ Mr David Clelland MP (Labour, Tyne Bridge) ‡ Mr John Cummings MP (Labour, Easington) ‡ Mr Chris Mole MP (Labour, Ipswich) ‡ Mr Bill O’ Brien MP (Labour, Normanton) ‡ Mrs Christine Russell MP (Labour, City of Chester) ‡ § Mr Adrian Sanders (Liberal Democrat, Torbay) ‡ Mr Gary Streeter MP (Conservative, South West Devon) ‡ ‡ Member of the Urban Affairs Sub-Committee § Chairman of the Urban Affairs Sub-Committee The following member was also a member of the committee during the parliament. Dr John Pugh MP (Liberal Democrat, Southport) ‡ Powers The committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk. Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/parliamentary_committees/welsh_affairs_committee.cfm. A list of Reports of the Committee in the present Parliament is at the back of this volume. Committee staff The current staff of the Committee are Kate Emms (Clerk), Libby Preston (Second Clerk), Ben Kochan (Committee Specialist), Ian Hook (Committee Assistant) and Emma Carey (Secretary). Contacts All correspondence should be addressed to the Clerk of the ODPM: Housing, Planning, Local Government and the Regions Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 1353; the Committee’s email address is [email protected] ODPM Annual Report and Accounts 2003 1 Contents Report Page Summary 3 1 Introduction 5 2 Consistent Management 6 Public Service Agreement targets 6 Achieving Targets 7 Complexity of targets 8 Fire service targets 9 3 Presentation of the Annual Report 10 4 Underspend 11 5 Meeting Targets on Planning Reforms 12 Planning agreements (‘planning gain’) 12 Planning Policy Guidance 12 6 Cross-departmental working to promote housing development 14 7 Ordnance Survey 15 Conclusions and recommendations 16 Formal Minutes 19 Witnesses 20 List of written evidence 21 ODPM Annual Report and Accounts 2003 3 Summary The Committee has found much that it can welcome in the ODPM Annual Report and Accounts 2003, however this report singles out several areas where there is still progress to be made. 2002-2003 has seen several changes for the ODPM in ministers and PSA targets. We are concerned that this has led to inconsistent management and unreliable reporting on the progress in implementing targets. Changes in targets can make it appear that progress has been made more quickly than it actually has. Any changes should be kept to a minimum and in all cases, adequate explanation for the changes should be given. Targets are becoming increasingly complex posing major challenges in terms of producing meaningful ways to report progress. It is better to have more simpler targets than fewer complex ones. If the targets are too complex devising measures to monitor them is in danger of becoming an end in itself rather than ensuring the effective delivery of public services. The Annual Report 2002-2003 does not present consistent information which compares spending with targets and objectives within standard time frames. The ODPM met its target to reduce its underspend, however, the target was not challenging enough and we think it should be far more ambitious. There has been only limited progress in some key ODPM programmes. The lack of progress in reforming the planning system has brought an extended period of uncertainty and could delay some key decisions on new schemes. The programme to promote housing developments in the South East and to tackle low housing demand in the Midlands and the North requires major cross-Government commitments. The ODPM needs to work harder to secure those commitments. 4 ODPM Annual Report and Accounts 2003 ODPM Annual Report and Accounts 2003 5 1 Introduction 1. Select Committees have long carried out inquiries into their Departments’ Annual Reports and Estimates. This has been recognised as good practice by the Modernisation Committee which recommended that departmental select committees should examine and report on estimates and monitor performance against targets in the Public Service Agreements.1 2. This inquiry considers the Annual Report and Estimates 2003 of Office of the Deputy Prime Minister (ODPM).2 The Office of the Deputy Prime Minister combines activities inherited from Department of Transport, Local Government and the Regions, such as housing, homelessness, urban policy, planning, local and regional government, neighbourhood renewal and the Fire Service with additional responsibilities for social exclusion and regional co-ordination (from the Cabinet Office). This report looks both at the historic performance and future priorities of the functions now undertaken by ODPM. 3. The Committee has found much that it can welcome in the ODPM Annual Report and Accounts 2003, however this report singles out several areas where there is still progress to be made. 4. During this inquiry, the Committee took oral evidence in public from the three Ministers of State: x Rt Hon Nick Raynsford, MP, Minister for Local and Regional Government x Rt Hon Lord Rooker, Minister for Regeneration and Regional Development; and x Keith Hill, Minister for Housing and Planning. 5. We also took evidence from four senior ODPM officials. The inquiry took place over two evidence sessions in July 2003. The transcripts of evidence taken, together with additional memoranda from ODPM, are published alongside this Report. 1 Select Committees, First Report of the Select Committee on Modernisation of the House of Commons, 2001-02, HC224-I 2 ODPM, Annual Report 2003, Cm5906, May 2003 6 ODPM Annual Report and Accounts 2003 2 Consistent Management 6. The 2003 Annual Report (CM 5906) is the first since the ODPM was created in May 2002 and covers the period between May 2002 and March 2003. The new Department meant a new set of ministers took charge. In May 2003, there was a further ministerial reshuffle bringing new policy priorities. The Department’s Public Service Agreements have also been reviewed, and three of the seven were replaced in 2002. With these constant changes there is a danger of inconsistent policy development, management and reporting. Public Service Agreement targets Rolling forward and replacing targets 7. Three ongoing Public Service Agreement (PSA) targets set in 2000 have been ‘rolled forward and replaced’ by new targets following the Comprehensive Spending Review 2002. These new targets cover: x decent homes; this now includes a new element for vulnerable households in private sector dwellings x local government effectiveness and efficiency; this additionally includes Comprehensive Performance Assessment scores and extends the cost effectiveness element to the end of the current spending review period x regional economic performance; the new target adds more detail to the earlier target. The Annual Report states that, in each case “In future, ODPM’s Annual Reports and Autumn Performance Reports will provide performance information on the SR2002 PSA target.”3 8. We question whether a ‘new’ target was needed in each of these cases. The target dates have remained the same for the decent homes and regional economic performance targets, although the targets have been revised. By amending existing targets and treating them as new ones, the ODPM have, in effect, brought their start dates forward. The ODPM have now decided to disregard the original targets. By reporting only on the new targets, the ODPM will make it appear progress has been made more quickly than it actually has. 9. There seems to have been little progress in achieving the original targets. Much of the progress was in producing indicators and baselines. For these original targets, the lack of any real progress in the period up to 31 March 2003 will now be consigned to history. To improve accountability, performance data published in ODPM Annual Reports, Autumn Performance Reports and on the Treasury website should explicitly state where current targets have replaced earlier targets and when the original target was agreed and what progress was made in the period between. 3 Annex D, ODPM Annual Report 2003 ODPM Annual Report and Accounts 2003 7 10. ODPM should make every effort to ensure that all aspects of the targets it signs up to are sufficiently well thought out that they are unlikely to need early replacement. The tendency with most Government departments since 1998 has been to have fewer targets, but to increase the number of elements in each target and have longer time-frames. It is not always helpful to reduce artificially the number of targets by having a smaller number with many different parts. Circumstances beyond ODPM’s control may mean targets need to be redefined but there should be a presumption against rolling forward and replacing current targets. It is preferable to create an additional PSA target than to roll forward and replace an existing one.