Localism and the Localism Act: An overview

1. Localism and the Localism Act:An overview East Midlands Councils Alan Waters, Learning & Development Manager LGIU

2. Building the Big Society throughthe Localism Act Decentralisation – giving away power to individuals, professionals and communities Big Society - people, neighbourhoods and communities have more power and responsibility and use it to create better services and outcomes Right to Bid Right to Build & neighbourhood planning Right to Challenge

3. We have been here before?

4. Introduced on 13th December 2010 Passed final Commons stage 7th November 2011 and Royal Assent 15th November with key implementation April 2012 onwards Localism Act

5. Headline areas of impact • Powers to call referendum (Council Tax) • Power of General Competence • ‘Community Rights’ (Planning, Services, Assets) • Council / social housing tenancies and rents • Councils (governance) • Finance In short - touches on all areas of local authority activity

6. A plain English guide to the Localism Act

7. Familiar language • ‘local’; ‘localism’; ‘choice’; ‘community’; ‘accountability’; ‘freedom’; ‘decentralisation’; BUT A wide range of views about what this means in practice for local government; elected members and the ‘communities’ they represent.

8. What’s in a word? -‘community’ Different meanings under different parts of the Act (and the wider localism agenda) • Community Right to Challenge • Neighbourhood Planning • Community Right to Bid • Applications for Free Schools • Academy conversions.

9. Localism: What sort of hand is local government holding?

10. Different views of ‘Localism’ “ I think it is reasonable that councils shouldn’t use their new found freedom to saddle up the horses, arm their citizens and invade France. Apart from that, the world will be your oyster”. Eric Pickles MP, Secretary of State for Communities & Local Government. Local Government Association Conference, July 2010.

11. Localism: What sort of hand is local government holding?

12. Different Views of ‘Localism’ ‘The Localism Act is conditioned by the dominant centralist culture of central government… it could as well have been called the Centralism Act’ George Jones & John Stewart ‘The World will be your Oyster’ Reflections on ‘The Localism Act 2011’

13. Henry VIII Clauses • These allow a Minister to use regulations to create new laws which have the same force as Acts of Parliament but which don’t undergo the same rigorous process. • Localism Bill peppered with HVIII clauses.

14. Freedoms: General Power of Competence • Framed as though local authorities can act as an individual (i.e. anything not expressly illegal) • Duties still exist around e.g. competition, equalities; ‘reasonableness’ and Human Rights • Secretary of State reserves the power to make orders preventing specific activities using the power • E.g. no abolition or variation of any tax.

15. Restrictions: Council Tax Referendums Requirement for local authorities to hold a referendum if they seek to set a level of council tax that this above the threshold considered ‘excessive’ by reference to regulations made by the Secretary of State A centralising mechanism for the SoS to set the amount of council tax.

16. Devolving contentious issues • Welfare Reform changes • Housing reforms • Budget reductions

17. Just the beginning • Within the possibilities and constraints of the legislation elected members must map out their own political direction: • There is no ‘blue print’ but central government will try to influence what happens on the ground.

18. It takes three to Tango?

19. Localism is more than the Localism Act • Must be seen as part of an even larger landscape encompassing - Welfare Reform - Open public Services White Paper - Health Service & Police reforms - Reform of Local Government Finance - Public expenditure cuts - National Planning Framework A number of which have strong ‘localist’ characteristics

20. Understanding the bigger picture

21. Localism and finance

22. Finance: ‘self funding’ – driving growth • Reform of the funding of local government (from 2013) predicated on individual local authorities driving growth - Community Infrastructure levy - New homes bonus - Reform of Business Rates - Discretionary RSG Stability of the system to fund services?

23. Open Public Services White Paper: ‘Right to Choice’ • Presumption toward choice in the provision of services • Services at lowest possible level: • Individual services £ follows the individual • Neighbourhood services • Commissioned services • Includes minimum standards, consumer champions and performance

24. Does the future of Local Government look like this?

25. A new role for elected members?

26. Government policy in one phrase (or two) • “This means replacing top-down monopolies with open networks…so that governments at all levels become increasingly funders, regulators and commissioners…instead of attempting to run services.” • … • “In place of a one-size-fits-all approach…we are making sure that the taxpayer’s money follows the decisions that each individual makes, so that priority is given to what the individual believes is in their own best interest.” • Open Public Services 2012– 29th March 2012

27. Role of members • Currently have influence over direct services or contracts and partnerships • Delivery models, within financial constraints, currently broadly shaped by councillors

28. Current accountability Members User

29. Future accountability? Shareholders

30. Role of Members in the future? • Future potential for myriad of diverse type and scale of providers – • Local government to act as a backstop? • Residents have contractual relationship with providers? • Is this still in essence the same type of constituency work as before? • Become “citizen champions” and commissioners – “Compare the council .com?”

31. New skills & new roles for councillors? As a ‘commissioner’ of services Contractor Partnership builder and co-ordinator Scrutinizer ‘Facilitator’ Community champion and advocate Monitor of ‘council contracts’ with local citizens. Review of member training needs and support