The New English Localism: How Real & How Relevant?

The New English Localism:How Real & How Relevant? Professor John Raine University of Birmingham Scottish Policy Innovation Forum 30th April 2012 Royal Society of Edinburgh

Learning Outcome… By the end of this session you will be able to assess whether: • there is anything useful to learn from the recent experience of local government south of the border, and by comparing the current rhetoric and reality on localism in Scotland and England?

Three perspectives on the Localism Act and Localism • The Localism Act as part of a Decentralisation agenda • The Localism Act as centralism • The Localism Act as embryonic localism

1. The Localism Act as part of a decentralisation agenda • Lifting the burden of bureaucracy: • Empowering communities to do things their way • Increasing local control of public finance • Diversifying the supply of public services • Opening up government to public scrutiny • Strengthening accountability to local people. From Big Government to Big Society…. Decentralisation and the Localism Bill: an essential guide’ (DCLG, 2010)

The Localism Act 2011 • In the words of the Coalition Government, the Localism Act offers: • new freedoms and flexibilities for local government • new rights and powers for communities and individuals • reform to make the planning system more democratic and more effective • reform to ensure that decisions about housing are taken locally The Plain English Guide to the Localism Act, 2011.

The Localism Act 2011New Freedoms and Flexibilities • A general power of competence for local authorities • Abolition of The Standards Board • Clarification on pre-determination • Referendums on directly elected mayors in the larger cities • Abolition of requirement for cabinet and scrutiny governance arrangements

The Localism Act 2011New Rights and Powers for Communities • Community right to challenge (voluntary organisations, parish councils, employee groups) and bid to take over services • Community right to take over assets of value arguably, the above two powers are potentially the most significant elements of the Act. • Community right to veto ‘excessive’ council tax rises • Transparency over senior officials’ pay • Abolition of charges and fines for waste collection

The Localism Act 2011Reforms to the Planning System • Abolition of Regional Strategies • Neighbourhood Planning and the community right to build • Duty to co-operate between councils • Requirement for developers to consult communities • Stronger enforcement rules • More flexibility on Community Infrastructure Levy • More limited discretion for planning inspectors • Ministers to decide nationally important developments

The Localism Act 2011Reforms to housing policy • New freedoms to councils to set their own policies about who is eligible for social housing (allocation policies) • New ‘fixed term’ tenancies (2 years minimum; 5 years the norm) • Enables councils to use private rented sector for responding to homelessness • Social housing rent income to stay with the local authority • Introduces a national social housing swap market • Changes to regulation of social housing (abolition of Tenant Services Authority)

The Localism Act 2011What it does not offer: • No significant change in the balance of funding between central and local government • No more freedom for local authorities to determine the level of council tax • No more freedom for local authorities to set their own fees, charges and fines (e.g. for planning applications, rubbish/recycling)

On the lack of additional financial autonomy… “…There is a huge gap in the Act. A Localism Act that lived up to its name would have dealt with the financing of local government. Centralism will prevail as long as local authorities are so massively dependent for their resources on central government. They become supplicants for funding from central government rather than engaging in a dialogue with their citizens about local priorities. A genuine Localism Act would give legislative authority to the decentralisation of local taxation, so that local authorities draw the bulk of their resources from their own voters with taxes whose rates they determine…”. (Stewart and Jones, 2012, p 98)

Localism Act in Wales • The Bill gives the National Assembly for Wales equivalent legislative competence in respect of three matters: - • local referendums on proposed council tax levels; • planning applications and enforcement; • Housing Revenue Account (HRA) and Housing Revenue Account Subsidy (HRAS) system in Wales.

What else is going on…? • Abolition of the Audit Commission • and the regime of Comprehensive Area Assessment • Abandonment of Local Strategic Partnerships • and the end of LAAs • Academy schools (independent from local authorities) • Directly elected Police and Crime Commissioners • Replacing Police Authorities, and with Police & Crime Panels as well.

2. The Localism Act as Centralism “…Some sections in the Act give expression to localism and decentralisation to local authorities, but they are set within a framework that remains centralist, an almost inevitable result of a system of central government dominated by the culture of centralism…” (John Stewart and George Jones, 2012)

Centralist tendencies of the Localism Act “…The centralism implicit in the accepted ministerial role is well illustrated by the letter sent by Bob Neill, a junior CLG minister, to all Leaders informing them they “…should provide an effective refuse collection even in difficult circumstances…”, as if they did not already know that and many of them were being successful in doing so. Ministers believe they must act even when localism means that matters should be left to local authorities to deal with...”. (Stewart and Jones, 2012, p96)

3. The Localism Act as embryonic localism • The Localism Act exhibits both localist and centralist tendencies. • This is because it represents an embryonic stage of development towards localism after at least a quarter of a century of centralism. • The roots of the ‘New Localism’ were apparent well before the Coalition Government at Westminster. • It was always likely that localism would be a strong issue for opposition parties at the general election (to be distanced from New Labour), Conservatives as well as Lib Dems: • Margaret Thatcher’s government was the exception – based on personal distrust of local government

Eric Pickles - a former local authority leader (Bradford MBC) • His localist instincts honed by experience of the centre-driven performance management regimes of New Labour/Audit Commission • His laissez faire politics reflected in the power of general competence, the abolition of the Standards Boards and the Code of Conduct and the Audit Commission.

But his instincts stunted by the twin pressures of: • An all-powerful Treasury perspective • cautious about ceding financial discretion to local government • A civil service that struggles to ‘let go’ of local government policy-making • an enduring (and unnecessary) sense of responsibility for the sector.

Centralist tendencies in the Localism Act “…Centralism pervades central government in forming its attitudes and determining its procedures and practices. It draws strength from the culture of the various departments of central government, which do not trust local authorities to run their own affairs and know no other way to deal with them than through regulation and detailed guidance designed to ensure they act in ways determined by the centre. Departmental attitudes are reinforced by ministers who have their own views as to how local authorities should act and wish to require them to act in that way…”. (Stewart and Jones, 2012, p 95)

In summary… • Commitment to localism in England (particularly as reflected in the Localism Act) currently seems ambiguous and contradictory • But for national politicians at least, localism is back into vogue • Localism has to be ‘learned’ (and old centrist habits, expectations and fears overcome). • It will take time, especially in a time of financial stringency. • But a start has been made.

for listening…

The New English Localism: How Real & How Relevant?