East Midlands Councillor Development Network

1. East Midlands Councillor Development Network Localism Support 22nd June 2011 Alan Waters, LGIU

2. Overview of the Localism Bill & Relationship with Big Society

3. Empowering communities: ‘giving local councils and neighbourhoods more power to take decisions and shape their area’. 2. Opening up public services: ‘the Government’s public service reforms will enable charities, social enterprises, private companies and employee-owned co-operatives to compete to offer people high quality services’. 3. Promoting social action: ‘encouraging and enabling people from all walks of life to play a more active part in society, and promoting more volunteering and Philanthropy’. Source: Building a Stronger Civil Society Office for Civil Society 2010 Big Society – key concepts

4. The Localism Bill • It is huge – several bills rolled into one. • 405 pages • 208 clauses • 24 schedules • Over 140 regulation making powers, order making powers, guidance, statutory requirements, duties.

5. The Localism Bill Covers - powers and governance - finance - ‘Big Society’ - Planning & Housing

6. Big Society – a reaction to Labour’s ‘command and control’ model ? Duty on local councils and other local partners to work together to agree a single set of priorities through a Sustainable Community Strategy and a Local Area Agreement Local Strategic Partnership Private sector Community sector Council Health Local Neighbourhoods Local Neighbourhoods Long term Sustainable Community Strategy (SCS) Three year delivery plan: Local Area Agreement (LAA) Local Charters Local Charters Police

7. Localism Bill to deliver…. • shift of emphasis to ‘outward’ accountability – to the citizen than to Whitehall • devolution to the lowest levels (“central government isn’t giving power to councils to then see it recentralised locally “ Grant Shapps MP, Communities and Local Government Minister)

8. Progress of the Bill • Completed its Commons stages – mostly unchanged • House of Lords – consideration of the bill x2 a week until the recess. • Current debates around whether there should be an overarching statement about local governance

9. Progress of the Bill • Some amendments tabled about the GPC & council constitutions. • Public Service Reform White Paper (when published) may impact on final shape of ‘Community Right to Challenge’ • Amendments on Mayoral arrangements.

10. 1. The General Power of Competence More Powers for Local Government?

11. General Power of Competence – clauses 1-7 • Framed as though local authorities can act as an individual (i.e. anything not expressly illegal) • Councils will be able to make decisions that involve activities anywhere in the UK or abroad, to do so for a commercial purpose –e.g. the external provision of services to other organisations. • The well-being power is repealed in England; it will continue to apply in Wales

12. General Power of Competence – clauses 1-7 • GPC will be subject to express limitations on what councils can do in existing legislation • Duties still exist around e.g. competition, equalities and ‘reasonableness • Secretary of State reserves the power to make orders preventing specific activities using the power • Highly centralised local government environment likely to narrow the interpretation of GPC in the courts

13. More Power to the People?

14. Local Referendums on general issues: Clauses 39-55 • Allowing local people and councils to instigate local referendum. • Triggered by a local petition if signed by 5% of the electorate within a period of six months. • The petition can be based on the whole area, a ward, or adjoining wards

15. Local Referendums on general issues: Clauses 39-55 • The referendum must be held within 12 months. • If it is on a subject over which it has an influence, the local authority is required to consider what steps, if any, it will take as a result • The Bill allows the Secretary of State scope to introduce later regulations varying the scheme e.g. changing the % of the electorate required to sign a petition.

16. Council Tax Referendums: clause 56 and Schedules 5&6 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.

17. Community Right to Challenge: Clauses 66 -70 • The Bill opens up the way for voluntary and community organisations, not for profit, charities and social enterprises to trigger a procurement process by expressing an interest in providing or assisting in the provision of council services. • Consultation on Right to Challenge’ points out that those who initiate the process, don’t necessarily win the glittering prize. • 12 week consultation – ended 3rd May 2011

18. Community Right to Challenge: Clauses 66 -70 • Mechanism to “break open” what are characterised as public sector monopolies • Process is complex – the ‘right to challenge’ will not modify the procurement process. • Impact on Local authority commissioning strategies.

19. 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.

20. Assets of Community Value (Clauses 71-82) A community right to buy requiring local councils to draw up and publish a list of assets of community value – this right provides a route for community groups to express an interest in bidding for assets. Covers privately owned assets.

21. Assets of Community Value (Clauses 71-82) Councils will be responsible for maintaining lists of properties & will be responsible for notifying owners and occupiers of listings and maintaining an accurate list.

22. Assets of Community Value (Clauses 71-82) Councils will be responsible for maintaining lists of properties & will be responsible for notifying owners and occupiers of listings and maintaining an accurate list.

23. Assets of Community Value (Clauses 71-82) • 12 week consultation (ended 3rd May) • Promotes the CLGs preferred option • Financial costs to local government in setting the scheme up; managing the asset lists; assessing and paying compensation (!) • Links to ‘community right to challenge’ transfer of services and assets.

24. Planning and Neighbourhoods (Clauses 89-93, 96 -101) Aim: to allow communities to shape their local environments. Key elements: Neighbourhood development orders: Neighbourhood development plans Community Right to build orders

25. Planning and Neighbourhoods (Clauses 89-93, 96 -101) Key elements: neighbourhood development orders: Will be made by a local planning authority on the application of a parish council or neighbourhood forum and will grant planning permission for a particular development or type of development

26. Planning and Neighbourhoods (Clauses 89-93, 96 -101) A neighbourhood development plan: Will set out policies for the development and use of land in the neighbourhood and is similarly made on the application of a parish council or neighbourhood forum.

27. Planning and Neighbourhoods (Clauses 89-93, 96 -101) In each case the local authority, at the end of a lengthy process, must make an order if the result of a local referendum – of electors able to vote in council elections – shows that more than half those taking part support the proposal. Note: A neighbourhood forum can qualify for recognition with as few as three local residents as board members and may be made up of people who live in, or want to live in the area.

28. Planning and Neighbourhoods (Clauses 89-93, 96 -101) Community Right to build order: For a specified development on a specified site within a neighbourhood area. The Bill provides for applications to be made by community organisations which can show that more than half the members of the organisation live in the neighbourhood at the time the application was made. (Same process as involved with a neighbourhood development order – culminating in a referendum if the proposal approved)

29. A radical measure? Local participation – but subject to limits Activities involved in obtaining an order or establishing a plan will require considerable capacity and resources at neighbourhood level. Probable that these demands will open the way for commercial developers to play a role in funding these exercises. Considerable costs will be borne by responsible local authorities in dealing with supporting applicants; including funding the cost of a referendum.

30. Impact of other Government policies E.g. March Budget & Planning. • Expectation that all bodies involved in planning to prioritise growth and jobs; introduce a new presumption in favour of sustainable development, so that the default answer to development is ‘yes’ • Streamlined planning process

31. Governance arrangements and accountability ‘Big society plans raise concerns for parliamentary democracy’ Guardian (22.1.11)

32. Issues of transparency & accountability • Scale of the Coalition’s ambitions to devolve power to local communities and outsource services to charities and the private sector • Concerns by the information commissioner that outsourced services could end up outside the scope of the Freedom of Information Act • Need for an FO1 2.0 along side privatisation and outsourcing of government functions.

33. Governance arrangements Localism Bill sets out the governance options that will be available to local authorities • Leader and Cabinet • An executive mayor and cabinet • A committee system • Another model – subject to SoS approval. • Scrutiny powers have been consolidated in the Bill, largely unamended the previous legislation.

34. Governance arrangements • Significant consolidation of power with proposed executive models • SoS can transfer any public function to an Executive mayor. Variable powers • Executive arrangements must continue to have at least one scrutiny committee • Councils reverting to the Committee system & 4th option councils (?) not obliged to have a scrutiny committee

35. The Committee system in a changed world • Will need to reflect public sector reform - Health and Well-being boards - Police & Crime Panels - Plurality of service providers (CRTC) - Local Enterprise Partnerships. Trend in the direction of more scrutiny

36. A new role for scrutiny?

37. Scrutiny and health • Abolition of PCTs and SHAs • New NHS Commissioning Board • GP consortia to commission services from private/third/public sector • Councils to set up Health & Wellbeing Boards (HWBs) and get public health functions • Health scrutiny powers to be invested in councils

38. Scrutiny and Policing • Abolition of Police Authorities - new Police & Crime Panels comprising at least 10 directly elected representatives • review the draft Police and Crime Plan and annual report • scrutinise Commissioner decisions • power to require the Commissioner and staff to attend Panel meetings • able to veto a Commissioner’s proposed budget by a three quarters majority vote • able to veto any candidate recommended by the Commissioner for Chief Constable

39. Scrutinising ‘Localism’: (1) Referenda • To investigate issues that could be subject to referenda or where a referendum is planned. • Identify issues of public concern.

40. (2) Community Right to Challenge: Role of Scrutiny: • Review council procurement policies • Consider the criteria based on social, economic and environmental considerations when coming to a judgement on accepting ‘expressions of interest’. • Watching brief, once the contracts have been awarded.

41. (3) Assets of Community Value Role of Scrutiny: • Help identify ‘community assets’ based on discussions with local people – ensuring that the process for putting the list together is transparent and accurately reflects public views. • Inform local definitions of ‘community interest groups’ and who should be included in the list of consultees.

42. (4) Housing Scrutiny Role: Tenancy strategies will be important documents. Scrutiny could investigate to what extent they assist both housing supply and housing mobility.

43. 2000 EXECUTIVE SCRUTINY

44. 2010 EXECUTIVE SCRUTINY

45. A dream come true? Local Councils meeting once a year to set contracts The late Nicholas Ridley, former Secretary of State for the Environment

46. 2015

47. The Impact on Elected Members as community leaders

48. Changing places

49. Scrutiny by communities & ‘real people’

50. ‘Big Society’: inheritance from the previous Government? The council as a ‘commissioner’ rather than provider of services A partner & ‘place shaper’ responsible for ‘well-being’ of the community Power traded for ‘influence’? Growth of the Scrutiny role