LOCAL GOVERNMENT REFORMS

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1 GMCVO s briefing on areas of policy, practice and the operating environment affecting the voluntary and community sector in Greater Manchester 16 LOCAL GOVERNMENT REFORMS Voluntary and community sector (VCS) organisations and local government share many values and objectives; both work in the interests of local people and local communities. The relationship that local authorities have with their local VCS is fundamental if the challenges that our communities face today are to be properly tackled. Local communities are strongest when all partners, statutory and non-statutory, come together at different stages and in different ways to meet shared objectives and increase the social, economic and environmental well being of an area. The current crop of reforms planned for local government structures and procedures including community leadership and engagement, service reform and performance improvement opens the door to more effective working relationships. A central plank of the local government modernisation agenda is the Communities in Control white paper, published in July, which contains a number of related proposals that seek to pass more control and influence to local people. It is about democracy, and how democratic practices and ideals can be applied to our complex society. But changes in all of these areas will only be effective if there is proper engagement of the local VCS and a real focus on encouraging and enabling participation at the most local levels of our society. Some of the key developments in areas of local government reform and the opportunities they present for partnership working with the VCS are set out in this edition of Issues. The Greater Manchester City Region Greater Manchester is currently developing a new governance structure and is negotiating a multiarea agreement with central Government. John Hannen explains why this is happening and gives an insight into the new proposals Since the abolition of the Greater Manchester Council in 1986 a complex arrangement of public services and local government structures has existed across Greater Manchester. This has seen joint authorities set up to manage police, fire, transport and waste disposal services whilst local authorities have undertaken some collaborative work through the Association of Greater Manchester Authorities (AGMA). With competing pressures to hit national and local targets and with varying levels of accountability at local, subregional and regional level, it has increasingly been recognised that there has been insufficient strategic co-ordination of partners. contd on page 2

2 Economic development has been the key driver in this process. It is recognised that whilst Greater Manchester has seen increased economic growth in recent years, not all communities are benefiting from this growth. This is an issue in each of the ten Greater Manchester districts and a common problem will benefit from a common approach. In addition to this, the need for an improved transport infrastructure has also required the districts to co-operate more closely in order to be able to submit the recent Transport Innovation Fund bid, linked to the congestion charge. An additional opportunity to directly manage investment at a sub-regional level came as a result of the Treasury s Sub-National Review in The review recognised the role of city regions and made recommendations for regional development agencies to devolve funding to cityregions if there were appropriate governance structures in place to manage such activity. This ability to control economic development spending is at the heart of Greater Manchester s proposals. Greater Manchester proposes to build on the existing AGMA model, strengthening accountability where appropriate. The AGMA Executive will be the key decision-making body and will comprise the 10 leaders of the Greater Manchester districts. This Executive will be supported by service commissions covering: Economic Development, Employment and Skills Housing and Planning Environment Public Protection Health Transport Improvement and Efficiency The membership of each commission will be appointed by the Executive, be based on a threeyear term and can include partners from other sectors. A Scrutiny Pool, comprising three councillors from each district, will provide oversight of the executive and commissions. In addition, a Business Leadership Council has been formed to provide a focus for the private sector and to advise the Executive Board, especially on issues related to economic development. The key principles informing this governance structure are that: local authorities will retain all their existing powers with the new body drawing powers into Greater Manchester, not taking them from the districts; democratic accountability shall be ensured and will be robust; a range of partners, including the voluntary sector, will be engaged in governance activity. In order to achieve the key aim of ensuring equitable economic development in Greater Manchester, AGMA is currently negotiating a multi-area agreement (MAA) with central Government. This is an economic development plan that seeks to act in a variety of areas, such as improving skills development, bringing in investment to Greater Manchester, and improving the business infrastructure of the city-region. AGMA has already created a joint approach to these issues of economic development and now the challenge has been made to central Government and agencies such as the Learning and Skills Council to provide the appropriate support to enable the MAA to be delivered. A draft MAA was submitted in June 2008 and negotiations are currently ongoing in an attempt to create a final agreement. The voluntary sector and community sector (VCS) has not been absent from these developments. GMCVO has been working with AGMA to ensure that the VCS is able to develop a relationship with the commissions and influence strategy. A commitment to working with the VCS is contained in the MAA, recognising the role the sector has to play in not only supporting economic development but in developing the social structures which enable people to be more easily drawn into work. In the coming months we will be addressing the commissions, as they are developed, and advising where the sector can play a role in addressing inequalities in the cityregion. If you require more information on this or want to know how you can be kept engaged in the process, then please contact GMCVO Representation Manager, John Hannen, at john.hannen@gmcvo.org.uk 2

3 Comprehensive Area Assessment Comprehensive Area Assessment is the new joint assessment framework for councils and their partners in England that will take effect from 1st April 2009 The Comprehensive Area Assessment (CAA) is intended to be: a catalyst for further improvement in the quality of life for citizens, the experience of people who use services and value for money for taxpayers; a source of independent information and assurance about local services for citizens, people who use services, taxpayers and central Government; a mechanism to help co-ordinate, rationalise and target inspection, improvement support and intervention where they are most needed. CAA is intended to focus on the delivery of outcomes that are the responsibility of councils either alone or working in partnership with others. This means that CAA will consider, for example, health and well-being, community safety, sustainable communities and children s and older people s services in addition to council services. Other service or organisation-specific assessment frameworks, for example schools, colleges, social housing and residential home inspections, health service and police force inspections, will continue but will be developed alongside CAA to avoid any duplication. A focus on outcomes for local people requires CAA to look across local councils, health bodies, police forces, fire and rescue authorities and others responsible for local public services, including the third sector, which are increasingly expected to work in partnership to tackle the challenges facing their communities. Hence CAA will be developed and delivered jointly by the various inspectorates (such as the Audit Commission) responsible for assessing those organisations and services. It will also be tailored to the priorities for each area, focusing on those outcomes most in need of improvement. Risk assessment and performance For each area covered by a Local Area Agreement (LAA), a key component of a CAA will be an annual risk assessment and reporting of comparative performance on a new national indicator set. The 198 national indicators took effect in April 2008, and two of them have a specific focus on the VCS (see separate panel). The improvement priorities in the LAA will be key to the annual area risk assessment; however, the area risk assessment will not be restricted to the LAA priorities. For example, it is likely to reflect the inspectorates assessment of the quality of engagement with local communities and the risks to people in vulnerable circumstances in the area whether or not this features as a target in the LAA. The area risk assessment is likely to address the following key questions: How well does the partnership understand and assess the needs of its communities now and in the future? Does it use this understanding to inform its local priorities? Does the partnership organise itself and ensure it has the capacity to deliver these priorities? Has it secure and effective arrangements to identify and manage the risks to achieving successful outcomes? Are improved outcomes likely to be achieved? Performance will be reported against the national indicator set with the aim of informing citizens, people who use services and central Government. How CAA will be reported and scored The new LAAs form the heart of the performance framework. Although performance will be measured in an area against all 198 indicators, new LAAs will be the only vehicles for agreeing shared targets with central Government. Each LAA will have up to 35 national priority targets with specific improvement targets set for each. The inspectorates intend to report CAA on a joint basis, for example via a separate website for reporting joint findings which could allow users to access data via their postcode. The overall aim is to report in a manner that is easily accessible to the public and in a way that allows people to hold their council to account for the quality, range and delivery of services. CAA will not provide an overall star rating for an area or authority but instead it is proposed that the different elements of CAA will be treated differently for scoring purposes. There is currently no intention to score the new national indicator set. Rather, it is proposed that this should be analysed and reported in a 3

4 consistent manner. Inspectorates are reviewing their operational structures and the way they work with local areas in light of the changes CAA brings to the inspection and assessment regime. For example, the Audit Commission is establishing a CAA Lead for each area. The aim is that through regular contact with the CAA Lead, Local Strategic Partnerships (LSPs) will have the opportunity to discuss and tackle any concerns as they arise. By the time the annual assessment is published it should contain no surprises and its contents should have been discussed with the LSP during the course of the year. The final CAA methodology is due to be published in early 2009, or before if possible. The first set of CAA results will be published in October National Indicators The new local government performance framework includes a set of 198 national indicators. Introduced in April 2008, the indicators cover all the national priority outcomes which local authorities will be responsible for delivering, either on their own or in partnership with others. These indicators will be used to measure performance in all areas over the next three years. Two indicators are of particular relevance to the VCS. NI 6 will measure the levels of volunteering within a local authority area, specifically the proportion of individuals undertaking regular (once a month) formal volunteering. LSPs might want to make NI 6 a specific priority where: they need to address historical weaknesses in this area; they have specific issues working with 'hard-to-reach groups; they wish to involve the local population in the delivery of public services; volunteering could contribute to a range of other policy priorities. Performance against NI 6 will be measured in a new survey (based on the Government s citizenship survey), which will be used to measure a number of the national indicators and will use a postal survey to gauge individuals views of the local area. But unlike many of the indicators being measured in the survey, NI 6 will not be restricted to activities within the local authority boundary. Volunteering will in many cases take place in a location outside of an individual s local area. The measure for NI 6 will be based on the location of the volunteer and not on the location of the volunteering they are undertaking. NI 7 will measure the contribution that local government and its partners make to the environment in which independent third sector organisations can operate successfully. LSPs might want to make NI 7 a specific priority where: they need to address historical weaknesses in this area; they want to unlock the full potential of the third sector (some LSPs may already have good relationships with a local third sector that is already thriving. These LSPs might choose this indicator where they think that there is still more that the third sector could contribute. This might be, for example, in helping statutory agencies engage with citizens more effectively, transforming service delivery, or developing the role of social enterprise); as a means to address other priorities (some LSPs will have identified important local priorities for which third sector organisations are likely to be key delivery partners. These LSPs might choose this indicator to strengthen their capacity to deliver on these other priorities). Performance against NI 7 will be measured and reported in every area, whether or not it has been included as an LAA priority. This means that every area should give careful consideration to the steps that it needs to take to improve performance. It will be the direct experience of third sector organisations of the outcome that will be most useful for assessing performance. This information will be collected through a proposed new survey of third sector organisations. More information on the new local government performance framework can be found on the Communities and Local Government (CLG) website at: 4

5 Opportunities for the VCS in the new regional structures At the end of November, the Government revealed its long-anticipated response to the public consultation on the sub-national review of economic development and regeneration commonly known as the sub-national review or SNR. The review considered how to strengthen economic performance in England s regions, cities and localities, as well as how to tackle persistent pockets of deprivation. Richard Caulfield of Voluntary Sector North West outlines the new regional arrangements and the potential for voluntary sector engagement The SNR aims to achieve four objectives: Empowering all local authorities to promote economic development and neighbourhood renewal, giving them added flexibilities and incentives to promote sustainable economic growth Supporting local authorities to work together, where they wish, across the sub-regional to promote economic development Streamlining the regional tier through simplified structures and streamlined decisionmaking Reforming central Government s relations with regions and localities The Government states that it is committed to stakeholder engagement as a fundamental feature of the processes of developing and delivering the regional strategy and there will be a duty on the regional development agencies (RDAs) and Leaders Boards to consult and engage stakeholders. What is meant by consult and engage is unclear, and given the significant amount of involvement the sector enjoyed within regional assemblies it is being seen as a backward step for sector involvement. However The North West started to implement many of the principles outlined in the initial SNR consultation document earlier this year. The North West Regional Assembly was replaced by the Regional Leaders Forum known as 4NW and the planning of a new integrated regional strategy began. In moving to these structures, the NW region has engaged its social, environmental and economic partners on 4NW and its sub-committees. I believe this will amount to far greater Sub Groups of 4NW Regional Planning Group, Regional Housing Group Economic Development Group, Review and Scrutiny Regional Transport Group involvement in the structures than we will see across the rest of the country and it is vital that the sector uses this to its advantage to be an active and influential partner. VSNW has supported applications from the sector to sit across the range of sub-committees and is seeking a place at the Leaders table to ensure the sector can influence 4NW at all levels. We now have members of the sector on a number of committees that are detailed on our website, and we are establishing communication mechanisms to create clear accountability structures between these representatives and the sector. At the same time as these developments have taken place, the NW RDA has expanded places on the Regional Strategy Advisory Group which provides further opportunity for the sector to engage. Sitting at the table is one thing, having influence is another. We have to use the opportunity that is presented to us to really influence the development and implementation of the next regional strategy. Voluntary Sector North West will be doing all it can to this effect and you can stay up to date by registering to receive our policy updates through our website. The North West Regional Strategy The RDA and 4NW will be jointly responsible for the regional strategy, including its drafting, implementation plan and monitoring of its delivery. The initial work is under way and the consultation on the evidence base for developing the strategy concluded several weeks ago. At present the RDA is drafting an Issues and Principles paper which will be out for consultation in February 2009 and it is vital that the sector takes an active role in this consultation. VSNW will be co-ordinating activity with a view to developing a response during the consultation and will be active in influencing the strategy at every stage of the process again, you can keep up to date with our activity via the website. 5

6 VSNW work at the regional level ensuring the sector has its voice at that level, our work is strengthened by a good flow of information from the local and sub regional level. In order to maximise our impact there are two other aspects to SNR the sector needs to engage with: Local Economic Assessments There will be a duty placed on local authorities to create a local economic assessment. This will be underpinned by statutory guidance rather than legislation. There will be a period of consultation on the draft guidance when it is produced. The Government expressly stated that local authorities will be expected to consult with private sector and third sector bodies in preparing their assessments. Sub-regional collaboration Economic Improvement Boards The Government will refine the mechanisms for local authorities to set-up formal collaborative arrangements on economic development. Legislation will be introduced to allow for the creation of statutory sub-regional authorities for economic development, these will be known as Economic Improvement Boards (EIBs). The Government s expectation is that EIBs will evolve out of existing sub-regional partnerships, such as MAAs. However, there will be no requirement for any existing arrangements to be in place before an EIB can be formed. VCS engagement at this sub-regional level will be vital to the strength of the sector s voice at the local and the regional level. Conclusion There is potential for the new structures to make it harder for the VCS to have influence within many regional structures; but the way it has been adopted in the NW gives us an opportunity we must not miss. If you want to ensure you are engaged please contact us at VSNW and visit our website (address below). The consultation on the SNR closed on 20th June Over 500 responses were received. VSNW s response can be found at Regional Compact consultation Voluntary and community sector organisations and are being invited to give their views on a new agreement with the public sector in the North West. The purpose of the proposed North West Regional Compact is to help build effective partnership working that supports and makes best use of the thriving third sector in the region. It would provide a solid foundation to strengthen the third sector s contribution to the region, and an effective framework for public sector engagement with the third sector and the communities with which they work. Key benefits of the regional Compact are: Increased awareness of the third sector at a regional level Better understanding of third sector specific barriers to regional working Joined-up cross-sectoral working and good practice sharing New partnership working Increased engagement in regional working Greater involvement of BME groups Richard Caulfield, Chief Executive of Voluntary Sector North West said: I am confident that this Compact will lead to improved partnership working and relationships between the public and third sectors in the region. This is crucial to the economic and social well being in the region and it is timely that the production of this Compact coincides with the development of an integrated strategy for the region. Regional organisations are invited to comment on the draft Compact over the next few weeks. The intention is that a final version is adopted and formally agreed at a major regional third sector conference which is taking place on 12th February A draft version of the Compact can be seen on the VSNW website at: For further information, contact: Eamonn Greene, VSNW, Ardwick Green North, Manchester M12 6FZ. compact@vsnw.org.uk. The consultation closes on 4th February

7 Participatory Budgeting: giving more people a say in local spending Participatory Budgeting is a method for enabling citizens to decide how specific pots of public funding should be spent. And as Kate Hathway reports, it is also part of the greater movement towards participative democracy and transferring power, influence and control towards people and their communities Participatory Budgeting (PB) was first used in Brazil around 20 years ago and has now spread around the globe. PB is seen as one of the practical ways to open up local government, to make public services more responsive to the people they serve, and to create more opportunities for people to give something back to their neighbourhood. In the UK, the Government wants to see PB being used in every local authority area by 2012 and sees new statutory duties as giving significant momentum to aid this. How does it work? PB is essentially about allocating a pot of money (or public budget) to the community and facilitating them through a process in which they discuss, vote, and finally prioritise how the money should be best spent. PB is very much a local activity and therefore tailors local situations and circumstances. The benefits of PB seem to be far-reaching and include bringing diverse people together and improving people s understanding of the complexities of budget setting. The process can also improve the way local people, elected councilors, and council officers work together. PB has already been used in various ways throughout England: Specific grant pots: Neighbourhood Renewal Funding and New Deal for Communities programmes where money is managed within existing neighbourhood management structures. Local area committees: using funds for specific service delivery as a way to trail PB on core local authority activities. The PB Unit, an independent project within Church Action on Poverty is being supported to undertake a number of activities to deliver the strategy: Nationally: Communities and Local Government (CLG) and other national stakeholders have a number of high profile events lined up to celebrate successful projects and learning from the pilot areas. Regionally: The Regional Empowerment Partnership (REP) as well as the Regional Improvement and Efficiency Partnership (RIEP) have an important role in promoting good practice within and between regions. Events and regional learning sets are planned for all regions. Locally: Practical advice will be provided to local authorities and community groups (using the PB Unit s toolkit and regional learning sets). Networks: the PB Unit is working with a number of networks throughout the country to further promote and facilitate the process. The Unit is also very keen to hear from other organisations or individuals who are interested in promoting PB in their areas. Creating opportunities The PB Unit and central Government wish to encourage the use of PB in the following ways: Via community governance partnership models where Parish or Town Councils, for example, have worked with local groups to produce a collective vision or action plan. Local authorities working with local communities and businesses to prioritise the spending of the Working Neighbourhoods Fund. As part of various established neighbourhood management systems focusing on community needs and linking local services with policing, health, and the involvement of young people. Councils using their powers to allocate discretionary budgets to councillors, with PB being a proportion of these. Providing guidance and support The PB Unit has developed a number of publications and resources in order to ensure consistent advice. In particular, their recent publication Participatory Budgeting: Values, Principles and Standards promotes core standards such as accessibility, transparency, inclusiveness and ensuring proper deliberation. There is also a toolkit available for local authorities and community groups providing structure and further contacts. Regulation and performance assessment From 1st April 2009, the statutory Duty to Involve will apply to all best value local authorities, requiring them to provide information, consult and involve local people, particularly the most excluded. PB has been highlighted as a useful mechanism for local authorities to consider and the 7

8 Unit plans to both promote PB to assist with the duty. The Unit is also working closely with inspectorates to make sure that the Comprehensive Area Assessment (CAA) evaluates the level and quality of public engagement in the improvement of local public services. Another way in which PB can be proposed (and as mentioned earlier) is through the new powers for councillors call to action. Communities may use calls for action or petitioning to encourage PB (as part of the Empowerment White Paper s plans to introduce a duty for councils to respond to petitions). Learning from evaluation and research The PB Unit is planning regular evaluation which it believes needs to cover issues such as the breadth of participation, the role of elected members and whether the project met its objectives. Evaluation should also assist with key national performance indicators, for example, whether PB increases the proportion of people who feel they can influence local decisions (National Indicator 4). The PB Unit will evaluate locally, nationally and internationally using their set of common values, principles and standards and providing guidance on a common approach to assessment and data collection. The Participatory Budgeting Unit promotes and co-ordinates the delivery of PB. The Unit is funded by the Government until 2012 to help deliver the strategy. Kate Hathway is Network Development Officer at the Urban Forum Local Area Agreements Local Area Agreements (LAAs) set out a new relationship between central and local government. They are action plans that identify the things that an area wants to achieve over a three-year period LAAs were first introduced in 20 pilot areas in 2005, were extended into a further 66 areas the following year and have now been rolled out across England. The Local Government and Involvement in Public Health Act 2007 made all new 150 LAAs agreed in June 2008 statutory and required them to have a duty to involve local people in developing the LAA and deciding what the priorities for their area should be. Before LAAs, local authorities had to manage relationships with a large number of departments all with their own funding regimes and reporting requirements. In practice this meant dealing with up to 1,000 different strands that they had to join up to deliver improvement in local areas. Under the new arrangements, councils will receive just one area based grant that groups all of these different strands into a single pot that they can manage more simply and effectively. LAAs are all about outcomes making things better for people in an area. The LAA includes a balance of locally and nationally set targets and offers far greater flexibility to local areas to set the priorities for their area. This balance of local and national targets is set out in the new performance framework for local government which was included in the Local Government Act of LAAs contain up to 35 targets drawn from the National Indicator set (see page 4). If you want to find out which indicators your local area has adopted you can visit ISSUES is produced six times a year by GMCVO. This edition was compiled by David Sutcliffe (david.sutcliffe@gmcvo.org.uk, ). GMCVO is the voluntary and community sector infrastructure organisation for the sub-region of Greater Manchester. It aims to strengthen the voluntary and community sector, build bridges with other sectors, and influence local and national policy. GMCVO s work involves representing, promoting and developing voluntary and community organisations, and working in partnership with local, regional and national infrastructure. GMCVO is also the sub-regional lead body for ChangeUp. GMCVO, St Thomas Centre, Ardwick Green North, Manchester M12 6FZ. Tel: Fax: gmcvo@gmcvo.org.uk Website: GMCVO is a Registered Charity no and a company limited by guarantee no GMCVO is grant-aided by AGMA (the Association of Greater Manchester Authorities). Printed by phd phd.1@btinternet.com November/December 2008

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