Budget puts Total Place at the heart of devolution agenda

March 25, 2010

Reacting to the Chancellor’s Budget Statement, Director of New Local Government Network Chris Leslie said:

“While uncertainty remains about the profile of future grant allocations for local authorities over the coming years, there were some helpful announcements in the Budget which bring localism a little closer. In particular, the debate around ‘Total Place’ appears to be crystallising – and tomorrow’s publication from the Treasury and CLG “A Whole Area Approach to Public Services” will be closely scrutinised.”

On Total Place:

“NLGN is pleased that Ministers are signalling encouragement for local areas to explore the scope of invest-to-save early intervention approaches. We also welcome the principle that local areas should be allowed to retain savings as a result of joint-working and collaboration. But we would welcome more detail on how departments of state will calculate and agree these savings and how agreements with local authorities might be enforced.

“The further reduction in ring-fencing of grant, by an additional £1.3billion, is good progress – moving from 110 to 94 funding streams and giving greater latitude to councils. However, this still leaves a considerable sum of money where councils will not have scope to take a ‘Total Place’ approach because of departmental insistence on ring-fencing and ‘passporting’ money, especially in Home Office, Department for Transport and DCSF grants.

“While we understand why the Treasury is looking at a ‘thematic’ approach to Total Place freedoms, we are concerned that this may in part defeat the purpose of taking the most strategic overview possible of all local expenditure and potentially constraining joint working between policy themes.”

On Tax Incremental Financing (TIFs) and Accelerated Development Zones (ADZs):

“At last the Treasury have accepted the logic of allowing councils the opportunity to borrow against future revenue streams to kick-start regeneration and economic growth. While the announcement of the intention to pilot is very welcome, we hope that the ADZ programme can itself be swiftly accelerated and rolled out beyond the £120m envisaged in this Budget.”

On Council Housing and Illegal Sub Lettings:

“As we urged in our publication earlier this month, we are pleased the Chancellor has acknowledged the savings to be made by cracking down on the unlawful occupation of social housing – and we hope that Ministers will not only make savings for the taxpayer but introduce a criminal offence for those who illegal sub let social housing premises.”

On Regions Policy:

“The enhancement of the role for Regional Ministers to include a broader public service reform remit will help strengthen the cross-cutting approach of local authorities seeking allies as they argue in favour of ‘Total Place’ working. Moving a third of civil servants out of central London is a sensible measure and co-locating regional offices will allow healthy policy interventions at a sub national level but on a more efficient basis.”


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