An offer local authorities can't refuse?

The Treasury's commitment to give public bodies that agree to deliver better services more cheaply greater freedom from central controls, ringfencing and targets has been welcomed as a move in the right direction. Ahead of today's report on the 13 Total Place pilots, the Treasury's response in yesterday's budget promised councils "new discretion" over £1.3bn of ringfenced funding . The budget plans for public services included a new "single offer" - a commitment by the government to "new freedoms from central performance and financial controls", with further reductions in ringfences, indicators and "burdens" for places that agree to deliver improved outcomes and additional savings." The budget does not define what an "area" or "place" is, nor how local areas will negotiate with the Treasury. But it does say places will be allowed to retain a share of any savings generated – a key concern for local councils. A new deal, with local authorities On Tuesday, the 2020 Public Services Trust thinktank put forward a proposal for a new deal, with local authorities obtaining more power for less money. The "single offer" proposed in yesterday's budget will be given to "the strongest performing places" from April next year. Areas will be encouraged to apply for greater freedoms in specific policy sectors. The budget highlights an "innovative police offer" to tackle drugs and alcohol abuse, for instance, and a new multi-agency children's grant. Ministers will also set up 11 Total Capital Asset pilots, to improve the use of public buildings. John Tizard, director of the centre for public service partnerships at the Local Government Information Unit, says the budget announcement recognises the contribution that Total Place can make to improving public service outcomes, and using public resources more effectively and efficiently. "The "new discretion" over £1.3bn of monies currently ring fenced and the Total Place Capital Asset Pathfinders are moves in the right direction," he comments. "These should be welcomed but there is an opportunity to move much further much faster." Urgent dialogue Tizard says incentives need to be strong and under local control. "The budget provides the basis for an urgent dialogue between local agencies and the government about a fast and radical move towards genuine localism and greater devolution and decision making to locally accountable people," he says. To encourage collaboration, the government will also develop standardised agreements for local bodies that want to pool their budgets. Specific standardised agreements will encourage joint working between councils and JobCentre Plus, and councils and primary care trusts. Elsewhere, the budget promises to reduce the overall burden of data collection on local bodies. And it promises "new freedoms" for areas to invest in preventative schemes, including the trial of so-called social impact bonds. But Andy Sawford, chief executive of the LGiU says the budget raised more questions than it answered about the post-election future for public finances, and says that ringfencing spending on the NHS, policing and schools will tie the hands of local politicians on about half of their spending.