Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

EXECUTIVE SUMMARY

1) Summary of Decision Area

1.1. This report provides details on the Sustainable Communities Act and what issues the Act raises for the County Council when considering its approach and response to the Act.

1.2. The Secretary of State issued an invitation, on 14 October 2008, for local government to put forward proposals about changes which will improve the sustainability of their local area, in accordance with the Act. Proposals may include the transfer of functions and funding. Proposals must be submitted to the LGA by 31 July 2009.

1.3. The County Council passed a Motion to support the original Bill in May 2006 and, at their November 2008 meeting, referred a notice of motion from Councillor Carew to consider the subsequent Act to the Governance Committee to consider. In accordance with Standing Order 17.5 Councillor Carew has been invited to the meeting to explain the motion. It was resolved that the issue be put forward to the Governance Committee for further discussion.

1.4. The following is Councillor Carew's notice of motion:

That Hampshire County Council

(i) expresses its concern at the decline of local services and facilities, local economies and local communities;

(ii) notes that this combination of factors increases people's feelings of exclusion and lack of involvement; and

(iii) further notes that local authorities and their communities know best on the solutions to local problems and so should determine how to promote thriving communities; and so

(iv) supports the bottom up process in the Sustainable Communities Act designed to allow local authorities and their communities to drive the help that central government gives in reversing community decline and promoting thriving, sustainable communities;

(v) notes that the Act became law in October 2007 with full cross party support and that this was a result of 5 year campaign run by a coalition of over 90 national citizens organisations called Local Works;

(vi) notes that the Act gives local authorities the power to

· make proposals to government on the action government must take to reverse community decline and promote sustainable communities, and

· argue for a transfer of public money and function from central to local control;

(vii) notes that the Act defines the sustainability of local communities broadly, that definition having the 4 aspects of

· the improvement of the local economy,

· protection of the environment,

· promotion of social inclusion, and

· participation in civic and political activity;

(viii) notes that the Local Works campaign give a number of reasons for why a local authority should choose to use the Act, those reasons being

1. Assistance from government - Community decline is happening everywhere and local authorities are not able to prevent it on their own. They need government help. This Act gives government a legal duty 'to assist local authorities in promoting the sustainability of local communities'. So by `opting in' local authorities are, in fact, signing up to receive that 'assistance'.

2. Power to determine that assistance - The Act also gives local authorities (and their representative body, the Local Government Association) real power to determine the nature of the assistance that they receive from government, as explained more fully in our campaign broadsheet on implementing the Act (contact us for free copies).

3. Strength in numbers - By opting in, local authorities can act in unison to put in proposals to government supported by their colleagues elsewhere. Joint suggestions by many authorities will make it even harder for the government to refuse to act on suggestions made by local authorities.

4. Transferring functions and monies from central to local control - The Act also enables local authorities - and thus local authorities acting together - to request the transfer of functions from government or government agencies to themselves. Because decisions on these requests must be made by the LGA and the Secretary of State trying to reach agreement (i.e. in co-operation), this can be used to regain from central government control of many powers and spending that affect local areas.

5. Access to Central Spending Accounts Information - The requirement in the Act for the government to `open the books' will mean that local authorities will know just how much extra money they can access if they push for a transfer of functions.

6. Democratic citizen involvement - All politicians (and many local authority officers) talk a lot about lack of public involvement in democracy. The recent Power report showed that the more people think that their involvement matters, the more they are likely to get involved. The very 'hassle' required by this Act (reaching agreement with - not consulting - citizens' panels) empowers citizens. Local authorities may well consider that this is a way of increasing citizen involvement; and

(ix) resolves, when invited to by central government in 2008, to use the Act by preparing and submitting proposals on how central government can help; and

(x) further resolves to

· to inform the local media of this decision;

· to write to local MPs, informing them of this decision; and

· to write to Local Works (at Local Works, c/o Unlock Democracy, 6 Cynthia St, London N1 9JF) informing them of their resolution to use the Act.

2) Issues Covered in Report

2.1. The first two sections of the report cover contextual information about the Sustainable Communities Act 2007 and outline the content of the Act.

2.2. The report outlines some issues for the County Council in its approach to the submission of proposals under the Act - particularly in relation to existing powers and the as yet unknown elements to this work - and the timeline for the first `round' of proposals. Future invitations to submit proposals are expected.

2.3. The report goes on to discuss some of the options open to the Governance Committee and some potential impacts of using the Act.

3) Recommendations

It is recommended that:

3.1. The Governance Committee agree the County Council's approach to the submission of proposals under the Act.

a) To agree to put in place mechanisms to publicise the Act on Hantsweb.

b) To agree that a process for handling any proposals which relate to the transfer of any Hampshire County Council functions and funding should be developed.

c) To agree that Hantsweb should provide an opportunity for County Council Members to generate and flag ideas for proposals.

d) To put in place the option the Governance Committee choose to adopt for the County Council's approach to submission of proposals to the LGA.

1.

MAIN REPORT

1) Contextual Information

1.1. This report provides details on the Sustainable Communities Act and what issues the Act raises for the County Council when considering its approach and response to the Act.

1.2. The Sustainable Communities Act was introduced to Parliament as a Private Members Bill, sponsored in the House of Commons by Nick Hurd MP, receiving Royal Assent on 23 October 2007.

1.3. A key principle of the Sustainable Communities Act is that local people know best what needs to be done to promote the sustainability of their area. The aim of the Act is to bring communities and local government together to put a case to central government to enact change and involve local communities in decisions about spending in their area.

1.4. The Secretary of State issued an invitation, on 14 October 2008, for local governments to put forward proposals about changes which will improve the sustainability of their local area. Proposals may include the transfer of functions and funding. Proposals must be submitted by 31 July 2009. A regular cycle of invitations is expected.

1.5. The County Council passed a Motion to support the Bill in May 2006 and in November 2008 referred a motion from Councillor Carew to the Governance Committee for consideration.

1.6. While the Act could provide useful opportunities, the County Council will need to consider the full implications of using the Act.

2) Content of the Act

Submission of Proposals:

2.1. County, district and unitary local authorities may submit proposals to government for changes to existing national policy or legislation which will improve the sustainable economic, social or environmental well-being of the authority's area, or part of its area. This is known by the Sustainable Communities Act as "the power of well-being" and originates from the Local Government Act 2000. The Sustainable Communities Act envisages that these proposals will refer to the decentralisation and reconfiguration of public services and/or changes to public spending patterns.

2.2. The Secretary of State has appointed the Local Government Association (LGA) as "Selector" to shortlist the proposals. The Secretary of State will then work with the LGA to choose which proposals to implement. The LGA has yet to publish the final criteria required to assess any draft proposals. For instance, we do not know if the LGA will accept proposals which are only applicable to local areas or whether they should have national applicability.

2.3. The Schedule of the Act lists the things to which a local authority must have regard before making any proposals. This Schedule lists areas of action which may promote sustainable communities and can be found at Appendix C. Proposals are likely to fit into two categories: community focussed changes and changes to responsibility and funding from central government and its agencies to local government.

2.4. The definition of the term and the activities which may promote "well-being" and the "sustainability of local communities" is deliberately open, left to public interpretation. The LGA have said that the proposals should be linked to the area's Sustainable Community Strategy, rather than the power of well-being. The power of well-being is now under question, following a legal challenge against four London Boroughs who cited the power to establish a mutual insurance firm, London Authorities Mutual Ltd.

2.5. It is the position of the LGA, and many in local government have argued, that there would be little merit in submitting proposals under the Sustainable Communities Act for policies that are already within the powers of local government to deliver under other legislation.

Community involvement:

2.6. Should the County Council wish to put forward proposals it will need to comply with the duty to establish, consult and reach agreement with a "representative community panel" of local people as described in Statutory Guidance.

2.7. The community panels may include identified communities of interest, third sector representatives, agencies providing services to individuals and groups and local elected Members from parish councils, district and county level local government.

2.8. Guidance for the Act permits the recognition of existing community panels. Where sufficient engagement mechanisms do not exist they should be specifically created.

2.9. The panels must take a view as to whether under-represented groups of the area's communities are sufficiently represented. If the panel decides it is not representative of local communities, all reasonable steps should be taken to invite under-represented groups to join the discussion.

2.10. These stipulations have considerable impact on the time it would take to ensure good quality and legally sound community engagement prior to the submission of proposals.

Local Spending Reports:

2.11. The Act creates a duty on government to produce local spending reports upon request which detail the amount of public money spent in each local authority area. The reports are required by law to be in place by 23 April 2009.

2.12. Reports of funding would apply to all national bodies, local authorities, government departments, non-governmental organisations or any other agency exercising public functions over a given period which may span past, present or future spending plans.

2.13. On 20 February 2009 the Department for Communities and Local Government (DCLG) published a consultation into Local Spending Reports as required by the Act. This consultation is in two parts. The first part requires responses by 4 April and asks about the suitability of the first `phase' of information to be offered in these reports. The second part of the consultation requires responses by 15 May and is concerned with how the reports may be expanded and improved in future iterations. The full text of the consultation is available from the DCLG website at: http://www.communities.gov.uk/publications/localgovernment/localspendingreportsconsultation

2.14. Limited information will be available in this first phase by 23 April. The first reports are proposed to include DCLG Revenue Outturn and Primary Care Trust Operating Spend for financial years 2006-07. These reports will only provide information which is already publicly available. With proposals from local government to be submitted by 31 July 2009 there is limited time to consider the financial elements of proposals within this first round of invitations.

Strategy title change

2.15. The County Council is not obliged to take up any of the provisions contained within the Act, except Section 4 where `Sustainable' Community Strategies must be written. The County Council has already done this.

3) Issues

3.1. Although in principle the County Council supports the aims of the Act, the use of it with regard to putting forward proposals to Government requires very careful consideration to ensure they would be in Hampshire's best interests.

3.2. The County Council is already successfully working with partner agencies at the Hampshire Senate, and through the Sustainable Community Strategy, the Local Area Agreement and other County Council plans and strategies, to deliver services which offer efficiency and value for money. It is appropriate that we work first with our partners to explore if the Act provides any tangible opportunities.

3.3. Any proposals that the County Council proposes to put forward must be developed with local people. The County Council will need to ensure that there is appropriate public engagement, and indeed enough time, to canvass, generate and consider proposals.

3.4. There will be costs associated with the establishment of community panels and the running of any event or events.

3.5. The Act could work in reverse: It is within the scope (in that it is not prohibited) of the Act for other Hampshire-based local authorities to propose taking over some functions and/or funding of Hampshire County Council. We could be approached by one or more district councils or any other public body.

3.6. The Governance Committee will want to consider the full impact of using the Act including the possible areas which could benefit and whether or not we could take action through existing powers without invoking the Act. The LGA has not yet published the final criteria by which proposals will be judged.

3.7. The credibility and worth of this Act will only be proven by the level of response government give to the shortlisted propsoals in this first round by changing legislation, regulation or policy.

4) Timelines

4.1. The first invitation was issued on 14 October 2008.

4.2. The County Council in November 2008 refera a motion about the Act to the Governance Committee.

4.3. The Government's Local Spending Reports: The first part of the consultation ends on 4 April and has an implementation date set in law of 23 April 2009. The second part ends on 18 May. There is not yet a stated implementation date for second or subsequent phases.

4.4. Community discussion and consultation is a requirement of the Act and will need to be included in the planning stages.

4.5. The purdah period will begin at the end of April, signalling the lead-in to the election on 4 June.

4.6. A report summarising the consultation responses and the final submission will need to be brought to Cabinet for approval.

4.7. The deadline for submitting proposals to the LGA is 31 July 2009.

4.8. The LGA submits the shortlist to the Secretary of State. On receiving the shortlist the Secretary of State will decide which proposals should be implemented by reaching agreement with the LGA.

4.9. The Secretary of State must publish her decision, reasons for it, and a statement of action (action plan) which describes how the chosen proposals will be implemented.

5) Outline of Options

5.1. Option 1

a. Do nothing. The Act does not require the County Council to submit proposals to government.

5.2. Option 2

a. Do not pursue the submission of proposals in this round (closing on 31 July) but undertake preparation work for the submission of proposals in future rounds.

5.3. Option 3

a. Develop and submit proposals to the LGA by 31 July.

5.4. Option 4

a. Develop and submit proposals in this round and prepare for the submission of further proposals in future rounds.

6) Option Analysis / Comparison:

6.1. Many other local authorities have supported the Act, including passing Motions at Full Council meetings, but none have yet released plans for exactly what proposals will be submitted to the LGA and government.

6.2. The submission of proposals is effectively an application to take over the functions and funding from another public body. The County Council is already working effectively with partner agencies. Any hasty proposals made without due consideration of the impacts on that agency and on the County Council might have a negative effect on working relationships with that agency and possibly others.

6.3. The County Council will need to satisfy itself that the proposals to be put forward are in the public interest in the long term and cannot be delivered through another piece of legislation or change to working practice. It is not likely that once the function has been transferred that it could be returned to the original public body.

6.4. It is likely that consistent thematic proposals from two or more local authorities will be more successful as a sound and coherent direction to government to take action.

6.5. There will be media sensitivities associated with this Act. The County Council could benefit from positive publicity showing us as community leader, fighting for freedoms from central government. There are risks that work to agree proposals which are subsequently rejected or not selected would undermine our reputation and public credibility and that negative publicity could be generated by those who feel the County Council should not be taking on additional responsibilities. Alternatively, if the County Council choose not to proceed with the submission of proposals there is a risk of negative publicity (such as the County Council failing to act) which may also undermine our reputation.

6.6. The County Council could put in place mechanisms to publicise the Act on Hantsweb. This publicity could clarify the Act and the criteria for proposals. This would provide an opportunity for both the public and elected Members to consider ideas. County Council Members supported the Bill and with a motion at Full Council in May 2006 and in November 2008 refers a motion to the Governance Committee for consideration. Debate by Members and communities on the type of proposals to submit is welcome.

6.7. The County Council could prepare a response for handling any proposals which relate to the transfer of any Hampshire County Council functions and funding on which they are consulted.

6.8. There is still a great deal of uncertainty with this work which suggests this is not a good time to develop proposals. Option 2 (at 5.2 above) would save time and resources in the medium-term and allow the County Council to see how the first round works. Still unresolved are: the questionable status of the power of well-being; development of local spending reports which have only recently entered the consultation stage and are much later than intended; the as yet unpublished formal LGA criteria for short-listing; and the untested commitment by government to devolutionary actions, particularly those which relate to central government departments other than the Department for Communities and Local Government who are leading work on this Act.

6.9. Further to these uncertainties, there are issues which relate to the timing of the first round. From the date of the Governance Committee meeting there will be approximately four months within which to ensure due diligence for community involvement and involvement of under-represented groups, develop sound legal and policy arguments and ensure that the correct democratic decision-making fora are able to debate the topic. Not submitting proposals in this round would give us due time to consult and develop sound proposals. It would also enable the County Council to work around the election period and provide more opportunity for the new council to get involved. This action does not preclude the submission of proposals in future rounds nor working towards proposals in the interim.

7) Conclusions

7.1. The County Council will need to take a fully considered approach.

7.2. The principle of the Sustainable Communities Act is good and the County Council have given it their full support. This could be an opportunity to be proactive on behalf of Hampshire's communities. In assessing the County Council's approach to the Act it is necessary to realise the potential scale of the implications from submitting proposals on certain topics and be aware of the uncertainties relating to the Act.

7.3. The credibility and usability of the Act will need to be considered in light of how government responds to proposals submitted in the first round.

8) Recommendation

It is recommended that:

8.1. The Governance Committee agree the County Council's approach to the submission of proposals under the Act.

a. To agree to put in place mechanisms to publicise the Act on Hantsweb.

b. To agree that a process for handling any proposals which relate to the transfer of any Hampshire County Council functions and funding should be developed.

c. To agree that Hantsweb should provide an opportunity for County Council Members to generate and flag ideas for proposals.

d. To put in place the option the Governance Committee choose to adopt for the County Council's approach to submission of proposals to the LGA.

CORPORATE OR LEGAL INFORMATION:

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

a) An equality impact assessment may be necessary if and when any proposals to government are submitted.

2. Impact on Crime and Disorder:

a) An assessment of impacts on crime and disorder may be necessary if and when any proposals to government are submitted.

3. Climate Change:

_ How does what is being proposed impact on our carbon footprint / energy consumption?

_ How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

a) The impacts on climate changed will be assessed if and when any proposals to government are submitted.

Schedule of the Act

This Schedule lists areas of action ("matters to which Local Authorities must have regard") which may promote sustainable communities.

These are:

(a) the provision of local services;

(b) the extent to which the volume and value of goods and services that are:

(i) offered for sale; or

(ii) procured by public bodies

and are produced within 30 miles (or any lesser distance as may be specified by a local authority in respect of its area) of their place of sale or of the boundary of the public body;

(c) the rate of increase in the growth and marketing of organic forms of food production and the local food economy;

(d) measures to promote reasonable access by all local people to a supply of food that is adequate in terms of both amount and nutritional value;

(e) the number of local jobs;

(f) measures to conserve energy and increase the quantity of energy supplies which are produced from sustainable sources within a 30 mile radius of the region in which they are consumed;

(g) measures taken to reduce the level of road traffic including, but not restricted to, local public transport provision, measures to promote walking and cycling and measures to decrease the amount of product miles;

(h) the increase in social inclusion, including an increase in involvement in local democracy;

(i) measures to increase mutual aid and other community projects;

(j) measures designed to decrease emissions of greenhouse gases;

(k) measures designed to increase community health and well being;

(l) planning policies which would assist with the purposes of this Act, including new arrangements for the provision of affordable housing; and

(m) measures to increase the use of local waste materials for the benefit of the community.