Documents/SG/2: Centre and Frontline/2.1: Local Control

2.1: Local Control

Letting local areas have more control over setting priorities and guiding resources by simplifying performance management from the centre and increasing local flexibility over the use of resources

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Actions: letting local areas set priorities -- We will streamline the Government’s national performance framework. At the next spending review we will significantly reduce the number of high-level priorities we set out at a national level. over time, as we roll out the system of entitlements and guarantees, we will be able to reduce the number of national indicators for local authorities. As an initial step, by April 2010 we will remove a number of indicators that are no longer relevant or needed. And as the new personal entitlements and guarantees become embedded, we will look to reduce the number of national indicators more substantially from 2011, following a review and appropriate consultation. We will align the different sector- specific performance management frameworks across key local agencies – the nhs, police, schools and local government – thereby increasing the focus on indicators relating to joint outcomes. We will set out in Budget 2010 the key areas where frameworks for specific frontline sectors can be further aligned. Actions: letting local areas guide resources -- We will increase local flexibility over resource use with a package of measures from 2010, which build on the findings of the total Place pilots. these measures are likely to: • See more devolution of resources to local authorities and local delivery organisations: both devolving more centrally held funding, as well as de-ring-fencing funding which has already been devolved, where this is possible without impacting on the delivery of national priorities or limiting wider flexibility. By Budget 2010 we will set out specific proposals to reduce the level of ring-fencing for local authorities • Reduce the number of different funding streams across the board so that services are not funded from a large number of small central pots. By Budget 2010, we will set out plans to bring together the most fragmented funding streams, including the numerous different funding streams for housing and simplifying the area-based grant for local authorities. We will also set out plans by Budget 2010 to synchronise grant payments from departments to local authorities for the financial year 2011/12, to make it easier for local authorities to manage their spending more strategically • Consider single area-based capital funding – total Capital – for a set of local public services with recommendations by Budget 2010. this could increase the efficiency of capital investments and public sector assets in a place or city region, in part by encouraging more co-location of services and shared procurement of common infrastructure. We will look for further opportunities to encourage local authorities to benefit from joint ventures and use their trading powers to create further commercial opportunities. We will continue to enable better use of resources by promoting the appropriate use of pooled budgets. We will: • Develop a small number of focused pilots to devolve pooled budgets to frontline service leaders, working with local strategic Partnerships and Children’s trusts. these pilots will be up and running by the end of 2010 and, if successful, rolled out nationwide • Publish guidance on effective pooling and aligning of budgets at a local level by Budget 2010 to incentivise and support local partner organisations to do this more often and more effectively – building on existing successful models of multi-agency working, such as Family intervention Projects which are being expanded to reach 50,000 problem families and have been proved to cut crime and antisocial behaviour • Consider options relating to stronger local scrutiny of spending on public services and publish specific proposals in early 2010

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