Tuesday 7 July 2015

Centralised funding, diminishing local authority, Combined Authorities and the role of the VCS

LOCAL AUTHORITY: A HISTORICAL VIEW
Do we have a rose tinted view of Local Authority power that is influenced by the ‘great’ civic leaders of bygone days?  Days when social and public programmes benefited  business and councils, controlled by the ‘great and the good’. Business leaders with a conscience developed centres of administration, Council Houses (Civic Centres) and Town Halls, to celebrate and remind people of the growing power and influence of local administrators and ‘benefactors’.
These benefactors however, were becoming more dependent on central funding for their growing projects, a dependency that would ultimately curtailing their ability to act ‘locally’. 
Over the past 30 years the role of Local Authority as a ‘delivery’ vehicle for national programmes has increased, while its role as local benefactor and innovator has all but disappeared. Local Authorities are now highly dependent on National Government funding through grant settlements and specific project / programme funding.
The provision of gas and electric were the first major services to be removed, long time ago, followed, over the years, by water, busses and post 16 education (FE Colleges). Social care, for children and adults have been eroded, as has the Council's role in statutory education.
It could be argued that the Housing Finance Act 1972 was one of the first national acts that impacted on local delivery / services. Municipal housing was no longer just a local issue - it was now governed by national legislation. Local Authorities were ‘forced’ to raise rents to fund their new, nationally imposed, responsibilities. While rent strikes followed as well as Councillors being disbarred for not complying with legislation (Cley Cross), the principle had been set. Not only were Local Authorities dependent on Central Government for major infrastructure developments, they also had to ‘do as they were told’ in what were seen as local services and provision.

LOCAL INITIATIVES, CENTRAL CONTROL BYPASSING LOCAL GOVERNANCE
Moving forward to the coalition government, over the last 5 years the centralisation of government initiatives has increased, exacerbating, and in some cases undermining,  Local Authority initiatives. Localism become the  mantra of the coalition government - central government pilots, vanguard projects and initiatives all but eroded local authority initiated activities, if not completely to the point of irrelevance, then very close to it. 
There is, however, a dichotomy in the methodology of the coalition and in the current administration. How do you reduce the services delivered through the public realm, especially Local Authority, while increasing local engagement and involvement within the decision making and localisation of services, actively engaging residents in planning services for their community?
The variety of initiatives developed that promoted the ‘locally led’ ethos of the Government continued to undermine the role of democratically accountable local authorities in strategic planning and development. From small neighbourhood management pilots to the development of academies, these were promoted as methods of developing delivery that are ‘managed’ locally. Local Enterprise Partnerships (LEPs), have been created and given the responsibility of economic growth and are led by local businesses. Health and Social care are growing increasingly closer together, potentially dominated by Health trusts, locally managed, with some delivery in the private sector. These are all funded through central programmes, removing a layer of accountability, and management. How will the creation of the West Midlands Combined Authority sit with these developments? Will it be any different to the current structure, will it have to work across LEP areas and remain totally dependent on national government funding for major infrastructure projects.  
While there has been no overt statement concerning the reduction /removal / demise in the role of current Local Authorities, the fiscal reduction of budgets managed by Councils, and the subsequent reduction in staff, together with the centralised focus on regeneration initiatives and competitive element introduced to infrastructure programmes, does not bode well.

WHERE IS THE ROLE OF THE TRADITIONAL VCS IN ALL THIS?
If we accept that, in the future, large, local infrastructure projects could be undertaken without recourse to raising the finance locality, business led, by-passing traditional local democratically accountable processes, then we have to ask what is the future for Voluntary and Community Organisations (VCS), community focused and infrastructure?

If national programmes are to be developed and delivered, with a local focus, by financially and ‘democratically’ accountable bodies, with established and accepted governance procedures, who is going to deliver them? Local VCS organisations, small community groups that have some accountability to local process and members  or larger Academies and Housing Associations that are neither responsible nor accountable to local democratic bodies but are more than capable of applying, developing and delivering centralised government projects – on a local basis? 

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