Provisional 2011-12 financial settlement

I've just had the email through from CLG and our settlements for next year are. On the government's figures

Breckland £9.247 million  a reduction of 13.8 % from last year

South Holland £7.347 million a reduction of 13.8% from last year

This is for what's called formula grant and accepts the Government's "recalculation" of what we got this year. There are other grants which we're not yet clear on and finance colleagues tell me the nett reduction in government grant could be much worse than this.


The BBC web site says Secretary of State announced an average reduction of 4.4% and no Council would undergo a decrease of more than 8.9% as a result of grant reductions  ................ if so it looks as if his cheque for the balance must be in the post to me !!

So why is there this discrepancy?  Well it's complicated but several people have asked that I have a go at explaining - so here goes.

The answer is that whilst the government grant has been cut by 13.8% the Secretary of State has introduced a new concept called "spending power" in which he adds other income the Council gets from sources other than the Government. And so he cuts the grant by 13.8% but doesn't clearly say this instead he refers to the cut in spending power.

Another example may help. If you are a retired person your income may come from the state pension, a work pension and interest on your savings. The Secretary of State cuts the state pension by 13.8% but tells you its OK because your "spending power" has only reduced by 9% because you're still getting your work pension and interest on savings.

SOLACE CONFERENCE

  Here's a link to notes from the recent SOLACE conference    SOLACE 2010 conference notes

Exercise Watermark

Exercise Watermark is a national emergency planning exercise based on a flooding scenario. It will take place 4th - 11th March 2011. Lincolnshire will be a contributor to the exercise and we are getting ready for it. I have added a link to the Exercise Watermark web site.

skills and characteristics for the future

Rob Whiteman MD of Local Government Improvement and Development (LGID) Has been to both Norfolk and Lincolnshire delivering a message to elected members and officers on the skills and characteristics that individuals and organisations will need to lead in the new world of local government . Here are some of the points I made a note of from his presentation:

• Confident to act without being given direction

• Passionate about doing more for less ( this is not the era when skills of developing cases for more investment will be in great demand)

• Create time and space for innovation

• Passionate for listening to and being accountable to the public

• Influencing skills

• Market making and brokering

• Collaborating to succeed not competing

• More political leadership and less managerialist

• Staff with a “sunny disposition” – optimistic, “can do” attitude

• “walk the talk” around values

• Take a look in the mirror – organisations reflect the people who lead them

• Act quickly and do things that make appositive difference to the citizen

• Professionals “on tap” not “on top”

Beyond Sharing

Beyond sharing, post public sector reform and with the "Big Society" operating what will the new sustainable model of local government in district councils look like? What's the end game? Where are we aiming to get to? The LGID assembled a small group of district council chief executives to explore both how we are preparing for the immediate future but also the longer term. Here are some of the issues we touched on:

• Opportunities to generate income (including return on investment of funds)
• Creating a culture of innovation
• What is / will be the acceptable cost of democracy
• Creating "super" districts - by agreement , hostile takeovers
• How far can we / do we want to move towards self service on line - "Amazon Council"
• Workforce planning for this new vision for districts
• "Franchise Council "

The unattributed quote of the day " don't make your services too efficient if you want to outsource them as the private sector will not be interested" Amongst many present there was a real appetite to take on the private sector and not just hand over rich pickings.

The LGID are preparing a pamphlet, based upon interviews with us and covering some of the transformational things that are happening now, which they hope to publish shortly.

As always I'd like to hear views - please post your comments particularly on what you think district councils will be like in 10 years time.

Social Productivity

An interesting weekend as I got to reading the report from the public services trust which was published earlier in the week -"From social security to social productivity: a vision for 2020 Public Services" . I then attended the chairman's civic service and the bishop of Grantham preached a message which supported many of the ideas and views emerging from the report.

The report calls for a complete reconfiguring of public services around the needs and capabilities of citizens, based on the principle of social productivity. It argues that our public services are increasingly unsustainable. The Commission calls for a new deal between citizens and the state, based on social productivity - greater social responsibility and more intelligent collaboration between citizens and public services.


2010 Public Services are described as too centralised, too prescriptive, too narrow, too passive, too static, too opaque and too patchy. The commission argues for  public services which engage others to to create better social and economic outcomes - leading to social productivity.

It's well worth a read.

Acknowledged by Minister

Local Government Minister Bob Neill told Local Authorities thinking creatively will help them do more for less at a conference hosted by the Chartered Institute of Public Finance and Accountancy (CIPFA) . In his presentation he made reference to the work which we at Breckland and South Holland are doing. It's always pleasing to get acknowledgement. This is what he said ....



" frontline services could be protected as finances get tighter if councils start to rethink procurement, sharing services and being more transparent to get value for money.

The new Government is putting councils and communities back in control of their own destinies by pushing power away from the centre. With their new freedoms councils can be more innovative and radical than ever before about the way they deliver services.

Mr Neill highlighted councils that were already leading the way. Westminster and Hammersmith and Fulham Councils are planning to merge their education departments saving a total of £4 million. Already there are 11 shared chiefs in place and twenty other district councils are discussing whether to share their chief executive and senior management teams. South Holland and Breckland district councils are poised to establish the first cross-county shared chief executive post between two authorities that do not share a border.

The Minister stressed councils must work with citizens to decide how to deliver services in a new era of transparency and openness. He pointed to Dartford Council where they held a public poll to decide on whether to keep the weekly rubbish collection. An overwhelming 94.5 per cent voted yes and so the Council developed a plan to share some services with Sevenoaks to cover the cost.

Bob Neill said:

"The most urgent issue facing the country is the need to reduce the deficit, put finances back on a stable footing and ensure economic recovery. To help cope we are transferring more power to councils that will mean more local decisions can be made with greater local flexibility. We are putting councils and communities back in control of their own destinies.

"Many councils are already taking steps to make their own efficiencies through innovative and effective working. I want to see more sharing management, expertise and resources. Incremental changes won't be enough. Councils need to think about how they can radically reconfigure services. I don't for a minute believe that this will be automatically painless. But the sector recognises that there are savings to made to focus resources on the front line through better procurement, greater collaboration and sharing of services.

"There is still waste to be driven out - greater transparency and accountability will help identify this potential. It is vital that we all look at where every penny is spent and that citizens are engaged in making these decisions. This is why we want all spending over £500 published online by January.

"The Chancellor recently met with local government to discuss how we can increase productivity by reducing unnecessary waste and costs on things like reporting to Whitehall and the ring-fencing of grants. We are committed to a phasing out more ring-fenced budgets. We have already cut the centrally-imposed burdens on local government. The Spending Review will drive decentralisation across all areas that fund local government. Departments are considering issues beyond their traditional remits including those that cross administrative boundaries.

"There will be real challenges as we face the future. But there are many things we can do to ensure that frontline services are protected, and that local people are able to hold local government to account. Localism will help local authorities to make the savings necessary to live within the fiscal constraints facing us all free from central government interference. Government's role is in the opening up of public services so they can be locally-driven services and meet local needs."

street clutter

"Our streets are losing their English character. We are being overrun by scruffy signs, bossy bollards, patchwork paving and railed off roads wasting taxpayers' money that could be better spent on fixing potholes or keeping council tax down. We need to 'cut the clutter'.

"Too many overly cautious townhall officials are citing safety regulations as the reason for cluttering up our streets with an obstacle course when the truth is very little is dictated by law. Common sense tells us uncluttered streets have a fresher, freer authentic feel, which are safer and easier to maintain."

so says Communities Secretary Eric Pickles who is encouraging Councils to get rid of unnecessary clutter in a bid to make streets tidier and less confusing for motorists and pedestrians. This would be a good time to have a look around your community with a fresh pair of eyes and report any bad examples of the kind referred to by Mr Pickles. 

Understanding Big Society

I came across this article by Adrian Brown on the Institute for Government blog. It makes some interesting points which add to our understanding of the "Big Society"

Niels Bohr, the Danish physicist reportedly said that “anyone who isn’t shocked by quantum theory has not understood it.” And so it is with the Big Society.

Over the past few weeks, the Institute for Government has been hosting a seminar series on Big Society Public Services along with NESTA and the Design Council. The series provided an opportunity to explore what the Big Society means in five different policy areas.

It is fair to say that for each area, from education to criminal justice, the full implications of the Big Society for policy and the management of services are still being worked out. What is already clear is that many of those implications are likely to be profound.

A new relationship

Most people solve most of their problems most of the time without reverting to the state. Families, friends, communities and the marketplace can all help individuals to solve problems with minimal involvement from government.

Even when the government does get involved there is a great deal that can be achieved without the state providing all the funding, assets or people involved in the solution. This switch in emphasis lies at the heart of the Big Society argument and suggests a potentially radical shift in the relationship between citizen and state.

The implication is that individuals and communities must take more responsibility for achieving outcomes that matter to them. They must also be willing to accept a greater share of the risks that were previously held elsewhere.

Big platoons

Central to the Big Society narrative is an enhanced role for civil society including charities, the voluntary sector and social enterprises. Newly formed public sector mutuals would also sit here such as the twelve Pathfinder Mutuals announced earlier this month.

But the romantic view of Burke’s “little platoons” sits uneasily with the demands on such organisations to professionalise and scale-up if they are to successfully work alongside large, private contractors without getting crowded out.

Quantifying social value is difficult, but the Big Society demands that everyone will need to get a lot better at it if we are to make the difficult trade-offs that are likely to be necessary. Add to this, the fact that many of these organisations are predominantly reliant on government money which will inevitably be squeezed over the next few years and the need for radical thinking becomes clear.

No, Minister

Handing greater decision making powers to localities means that central government will need to become a lot more disciplined about how and when it chooses to intervene.

Establishing a clear ‘operating framework’ which outlines the boundaries to local freedom would be a good starting point. In the most devolutionary scenario this could be a very limited set of specifications designed to ensure that minimum standards are met and the appropriate actors are clear on their roles and responsibilities.

Everything else would be for local discretion. Ministers would need to respect this even when decisions are taken locally that they disagree with. Can we expect to see Secretaries of State standing at the dispatch box and saying “that was a matter for the local people” more often?

You’re in charge

With greater devolution must come greater local accountability. Local councillors and local authorities are an obvious place to start but in the future will be supplemented by other elected representatives such as locally elected police and crime commissioners.

Local people will also be engaged directly through mechanisms such as community forums, e-petitions and special interest groups. Choice of provision also has a role to play, and the schools agenda is aiming to put more power in parents’ hands to choose the school that best meets their needs (or to help establish new schools in areas where provision is poor).

Unblinking transparency of performance is the essential ingredient that will give these mechanisms teeth. But people must also be willing to use that information to hold providers, officials, elected representatives and ultimately each other to account. Different communities are likely to require different incentives to adopt this role.

There also needs to be an acceptance that services will not be the same everywhere – the dreaded “postcode lottery” – except in contrast to a lottery you can actually do something to change the outcome.

The Big Society has been criticised by some as unsubstantial. On the contrary, I’d argue that while the full implications are only slowly emerging, each new layer triggers further, often profound questions.

Where will this vision lead? Almost certainly to a radically different role for the state but to quote Bohr again, “prediction is very difficult, especially if it’s about the future.”

Slavery

I notice that Communities Minister Andrew Stunell has today in Liverpool taken part in a ceremony to mark the abolition of the transatlantic slave trade. We must remember however that an illegal slave trade still exists and sadly appears to be flourishing. We tend to call it "people trafficking" these days. Check out www.thea21campaign.org and prepared to be shocked by the statistics.

Foundation Councils

We've heard of Foundation Schools and Hospitals what about Foundation Councils? Here is an interesting article I came across. It's written by Cllr Colin Barrow leader of Westminster City Council. I wonder if the idea will catch on?

"Councils are hampered in their ability to innovate and provide good quality low cost services by three factors:

An onerous, centrally-imposed performance framework – despite the welcome end of the CAA and Audit Commission, we still have the onerous regimes of Ofsted and CQC plus the ‘control freakery’ from Whitehall departments with directives, guidance and data demands requiring us to produce numerous plans and strategies implementing Government priorities. This leads directly to the next factor and leads to Whitehall telling local authorities how to run their services.

Insufficient operational freedom to design services that suit local circumstances - local authorities are best placed to know what will work at a local level, are directly accountable to local residents and operate effective partnerships with other local public service providers. As we will detail over the next few days, local services should be freed from central control to design services around the needs of the customer and produce better outcomes at lower cost.

Lack of financial control in their areas - businesses in Westminster contribute £1.2bn in business rates to the national economy, but the council receives only 12% of this to invest locally. Meanwhile, nationally-set fees and charges, for example in planning and licensing, mean that councils are unable to recover their costs.
Legislation to permit locally differentiated charging based on a full cost-recovery model would have saved Westminster Council £2.8m in 2009-10.

The solution

We believe that the solution to these issues is the creation of Foundation Councils - a concept that has been jointly developed by three authorities with a long established track record of delivering high-quality, value for money services - Hammersmith & Fulham, Wandsworth and Westminster.

Foundation Councils would automatically be granted powers to:

• set local fees and charges, including variable business rates, to enable them to recover costs and generate a profit for reinvestment in local public services;
• generate income and save money through full freedom to trade and share services;
• exempt them from regulatory burdens, including the excess of Ofsted and CQC requirements. We recognise that in areas of high risk social care, assurances are needed but these two regimes have gone beyond ‘safeguarding’ to regulate local authority activity in these areas;
• introduce bye-laws and manage the public realm without reference to specific enabling legislation;
• present “offers” to central Government for more specific powers, freedoms and flexibilities in particular areas, such as employment and skills services, where it can be demonstrated that these would improve performance, increase satisfaction, and reduce cost.

We believe that the establishment of Foundation Councils would:

• Support government in its ambitions to decentralise
• Demonstrate the savings and better outcomes possible from reducing the duplication of local and national agencies.
• Match payments and results. The growth in public spending over the last decade has not been correlated with results. Productivity and competitiveness must be built into the DNA of local public services. The specific grants, targets and inspection regimes of the last decade have been enfeebling and counter-productive. Foundation Councils now give us the opportunity to drive this major and necessary change where payment is by results.

Over the next few days I will be setting out further details of how Foundation Councils could work and the sort of powers and areas that we believe they could make a genuine difference to delivering high quality, cost effective public services."

10 tips to avoid wasting time at meetings

This month’s theme in South Holland’s ongoing campaign to cut waste is “wasted time”. One of the ways in which we waste time is in unnecessary or unproductive meetings. We have a lot of meetings in Local Government so you’d think we’d be experts at running good ones but this isn’t always so. Here are my 10 top tips 

1. Is the meeting really necessary? Be clear on its purpose don’t just roll over from one meeting to the next because that’s the way its always been. 
2. Are the right people at the meeting? Invite only the people who are needed ( the fewer the better) and if its a long meeting with a number of agenda items invite people for specific agenda items only. 
3. Consider a suitable venue for the meeting - do all attendees have to be physically present in the room or would a telephone conference or video conference be better. 
4. Plan the meeting beforehand including start and finishing times, make sure all attendees understand why the meeting has been called, why they have been invited and what is expected of them. 
5. Start on time and expect attendees to arrive on time - don’t excuse lateness 
6. Expect attendees to come prepared having read papers circulated with the agenda before they arrive at the meeting. 
7. Ban multi-tasking. No mobile phones, text messaging, emails during the meeting. 
8. Insist attendees speak in plain English and avoid jargon so that all present can understand and follow what is being said. 
9. Make sure the meeting has an effective chairperson to keep the meeting focused on its purpose, deal with confusion or conflict, and assign actions to individuals 
10. Don’t automatically set the date for the next meeting - check that one is really necessary 

Please let me know if you have any further tips. 

There are some great quotations on meetings please share your favourite. Here’s one to get you started

  “ Meetings are indispensable when you don’t want to do anything” J.K.Galbraith

An exciting future

In the past 24 hours Breckland and South Holland Councils have formally agreed to appoint me as their joint chief executive. I consider this to be an immense honour and privilege. This is the first step towards the two Councils establishing joint senior management and implementing closer working in order to deliver savings and efficiencies.
All Councils are facing cuts in their finances and the Leaders and elected members of these two Councils are positioning them for a positive and sustainable future where each will continue to provide effective local government to their communities. These will be tough times for local government and it's great to be part of such a forward looking and positive approach where we will shape and determine our own futures and not sit back to be victims of the circumstances we find ourselves in.

Welcome

Welcome to this new blog which I have set up as a place where from time to time I'll share my thoughts and reflections and let you know what I'm doing. My hope is that it will help you to keep in touch with me and that you'll use the comments feature to let me know what you think.