Why ministers are deaf to local government warnings on finance
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image: dedalusj, Flickr
Realpolitik means the local government sector shouldn’t hold its breath waiting for central government to help it out of its financial predicament, says Richard Harbord.
Life is very unfair!
The chorus of noises about the state of local authorities and their services grows daily. It is clear that the financial situation has become almost impossible to manage.
The fact that we seem to be moving back to one-year settlements and medium-term (and longer) financial planning has become almost meaningless.
Those who have read my blog before will know that I feel in a normal world (does anyone remember that) that section 114 notices are an outward display that relationships between members and officers have failed.
But in the current circumstances I am sure it is inevitable; although I will resist all temptation to forecast where such breakdowns might occur in future.
I know that there is a strong view that when such steps are taken authorities need to point the finger at central government and its failure to provide adequate resources, but the sad fact is that no one is listening.
It also is obvious that authorities who find themselves in that position then become subject to extra scrutiny, which is also counterproductive.
At the Room151 Finance Directors’ Summit last week we heard from Institute for Fiscal Studies director Paul Johnson about the prospects of the forthcoming Public Finance Review, but it was clear that the chancellor will have very little room to assist local authorities.
The thing is that commitments have already be made to the National Health Service and prisons which remove any substantial scope for improvement to local authorities.
Johnson pointed out that no date has been set for the budget which will set out the funding envelope for the review – although it originally was to be the end of October.
Political realities
I suspect that Brexit may be part of the problem, as the recent talks in Salzburg do not appear to have gone too well.
But there are other difficulties as well.
The green paper on social care first promised almost two years ago is now vaguely promised for the end of the year.
There seems little certainty about that and there is a feeling that it might be very green and might not move us forward.
Adult social care has been a crisis brewing for at least 20 years but it has reached the point where all potential solutions are vote-losers and difficult.
The fair funding review is chugging along with the potential of pleasing very few authorities.
In any case, it is only rearranging the deck chairs on the titanic, as the quantum of funding will not be increased.
Brexit has complicated a situation which is the result of continual short-termism and only looking to the next election for policies.
Numerous commissions have reported on the need for change in local government financing but have all been warmly welcomed and then ignored as being vote losers.
Council tax is a scandal – a temporary solution still stuck in 1993.
The great British population is unable to make neither head nor tail of the bizarre valuation of their properties at bygone values and the ludicrous banding system which means those in high value properties are not contributing enough to the local authority.
This is all far too politically difficult to be resolved.
Unhealthy focus
I personally find it irritating that continually large sums are promised to the health service.
All the extra resources given to it over the years, whilst obviously being electorally-welcomed goes towards a deficit which never seems to close.
Surely the money needs to go towards transformation of the service which needs to remain a national service but desperately needs to be locally accountable.
How many person hours have been spent on discussions about the integration of health services and social care and what measure is there of the success of those endless discussions.
The current promise of an extra £20bn for the NHS by 2023 makes the future for local authorities very uncertain.
It is all very frustrating.
As savings to services increase there will be an increase in judicial reviews against local authorities by users, and that is not a good use of valuable resources.
Sadly, it is no longer possible in many cases to meet the aspirations of our residents.
Until local authorities can get someone at the centre to listen and understand there will be no dramatic improvement.
Richard Harbord is a former chief executive of Boston Borough Council.
