• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

At risk councils need Community Budgets first says Cockell

0
  • by Jo Tura
  • in Funding
  • — 23 May, 2013

Community Budgets work and money should be allocated first to the councils facing the toughest cuts according to Sir Merrick Cockell, who spoke at the Commons Select Committee on Community Budgets this week.

Cockell said that it was clear from Local Government Association research that 86 councils would have 85p for every pound they currently have under cuts expected in the next spending round. “We think that is a significant reduction,” said Cockell. “Those at 85p for every 100p at the moment could be at a tipping point where some of their statutory responsibilities could be at risk … Many of those areas are ones which don’t get New Homes Bonus (and) which don’t get a sniff of any of the business rate retention because there isn’t any business growth in their area … Our view to Government would be if you were going to focus support on the areas most in need you should be looking towards those 86 areas because the impact of Community Budgets is going to be greater there than elsewhere.”

Also speaking to the Committee Laura Wilkes, policy manager for the Local Government Information Unit, said that councils had to have a clear plan for what they would do with any Community Budget money from Whitehall departments.

Cockell said that Community Budgets were difficult to operate when many funding streams and schemes were involved. Skills is an obvious area where this is the case, he added: “You have so many pots and triggers to access them … we would look toward a simplification.” Some departments had been more helpful than others during the Community Budget pilots such as the one in the Tri-Borough (Westminster, Hammersmith & Fulham and RBKC), he explained, but the Department of Health had been working particularly well on them.

When asked whether the Treasury had “bought in” to the concept Cockell said he thought that they were “firmly part of this”. Work done by Ernst & Young in validating the savings estimated in the pilots was crucial to Treasury buy in, he told the Committee.

The meeting also discussed how money would be put into Community Budgets from Government departments. The idea of a ring-fenced fund, as per the Heseltine suggestions, was brought up, with Committee members asking how much departments would be required to put aside for Community Budgets and how much a total pot might amount to. One of the models that the Local Government Information Unit has suggested for accessing Community Budgets is the lock and key system where the government would have money set aside and then ask local authorities to apply with Community Budget project ideas.

Sir Merrick told the Committee that local government’s role in Community Budgets would be crucial, even though central government stands to benefit the most financially. “Most of the savings – 80% – fall on the Whitehall side so you could say to local government ‘what is the incentive?’” said Cockell. “But I think it is part of our responsibility over our Whole Place leadership of our area.

“We are the conductor of the orchestra that can bring people together and that has been proved very effectively in the pilots. The difficulty is for all councils to realise this isn’t something someone else is doing. All of local government needs to be looking to how their plans are going to make Community Budgets work because there are going to be very few options in the next spending round and the one after that … If there are ways of providing public services better and getting better value for every pound spent and improving those services at the same time that is a very persuasive argument for any authority or community … The alternatives are simply close down services.”

Share

You may also like...

  • Opportunity knocks for debt managers Opportunity knocks for debt managers 24 Sep, 2014
  • Innovation key to kickstarting Localism Innovation key to kickstarting Localism 30 Nov, 2011
  • High Court ruling clarifies councils’ SEND funding duties High Court ruling clarifies councils’ SEND funding duties 16 Apr, 2019
  • Corbyn attacks ‘Orwellian’ Fair Funding Review Corbyn attacks ‘Orwellian’ Fair Funding Review 11 Apr, 2019

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 3 days ago

    The vaccine may help settle cash flows but inflation remains a risk: Sponsored article: Lauren Sewell examines the prospects for long-term borrowing as Brexit settles and vaccines are deployed against Covid-19. On the 9th October 2019 Whitehall sent… dlvr.it/RqZXCr pic.twitter.com/PzgOZOGQ0k

    Room151 3 days ago

    ESG in liquidity: Sponsored article: Gavin Haywood looks at the integration of ESG in Federated Hermes’ money market funds. Federated Hermes has over 300 public sector clients invested in our AAA rated money[...] dlvr.it/RqZX5f pic.twitter.com/E87sBXsay8

    Room151 4 days ago

    New realities of investing cash and liquidity: “What to do now?”: Sponsored article: Brian Buck looks at the “unique challenge” for cash management strategies. As investors assess the ongoing impact of the pandemic on their business, levels of cash and… dlvr.it/RqVbk9 pic.twitter.com/ZElVASmEUV

    Room151 4 days ago

    Extra finance promised by the government receives a broad welcome: Sponsored article: The financial pressures facing local authorities this year continue to pose challenges for council treasurers. While the launch of the UK’s Covid-19 vaccination… dlvr.it/RqTzTF pic.twitter.com/HCjH0pyHR5

    Room151 4 days ago

    A savvy approach to managing your cash: Sponsored article: Caroline Hedges examines the need for active cash management to achieve a higher than average return. Last year saw the already mountainous pile of negative-yielding debt around the[...] dlvr.it/RqTzMK pic.twitter.com/uP0RQYTJLt

    Room151 5 days ago

    Putting alternatives at the heart of multi-asset portfolios: Sponsored article: Nick Edwardson looks at the assets that provide the “most attractive opportunities”. We believe that asset allocation is the primary driver of investment returns and that the… dlvr.it/RqQ2Qt pic.twitter.com/WLBzvRRRUQ

    Room151 5 days ago

    Thriving in the pandemic: Avoiding the stragglers: Sponsored article: George Crowdy looks at the sectors providing opportunities for sustainable investment. Throughout much of 2020, we talked about why sustainable investing has thrived in the pandemic,… dlvr.it/RqQ2NQ pic.twitter.com/dxiPWKFsPl

    Room151 5 days ago

    The development of CCLA’s mental health benchmark: Sponsored article: Amy Browne examines the importance of investing in mental health in the workplace. We are living through a public health emergency in more ways than one. Physical health[...] dlvr.it/RqQ2Jx pic.twitter.com/o6yRSCX3oF

    Room151 6 days ago

    Brexit: What the EU trade deal means for the UK economy: Sponsored article: Hetal Mehta looks at the impact of Brexit on economic prospects. Four and a half years after voting to leave the EU, on Christmas Eve the UK finally[...] dlvr.it/RqLBDt pic.twitter.com/No62srfE8h

    Room151 6 days ago

    Cash dethroned: The quest for liquid yield: Sponsored article: Peter Hunt and George Carne ask how treasury departments can balance the need for yield and liquidity. The massive stimulus and waves of liquidity provided by central banks[...] dlvr.it/RqLBDj pic.twitter.com/05g6Zhu1kU

    Room151 6 days ago

    Richard Harbord: Delayed “capital determinations” make section 25 opinions a new crunch point: The severe pressure on local government budgets now means section 151 officers confront a tricky call on  whether they can make a judgement on the robustness… dlvr.it/RqLBDV pic.twitter.com/vTAbDKFzkI

    Room151 1 month ago

    PWLB Consultation: Analysis straight from Dickens: Helen Radall and Paul McDermott present a legal examination of the new PWLB borrowing rules as Charles Dickens might have imagined it. Free and easy PWLB (“Marley” to his friends)[...] dlvr.it/RnmwLq pic.twitter.com/yFxcPrQqEG

    Room151 1 month ago

    Room151’s top stories from a momentous year: 2020 was the year in which local government grappled with Covid-19, funding strains, controversy over borrowing rules and the threat of financial collapse. It has been an exhausting and historic[...] dlvr.it/RnlpZg pic.twitter.com/g3myNyox6J

    Room151 1 month ago

    Tracy Bingham: 2020, a year best forgotten but also one of learning: Many will rush to erase 2020 from their memories but, writes Tracy Bingham, there were also many lessons about finance teams, strategic planning and leadership. 2020: A year we’d… dlvr.it/RnlpY2 pic.twitter.com/m7G1krrtCu

    Room151 1 month ago

    Settlement must address ‘precarious’ local government finances: Dan Bates crosses his fingers for “no nasty surprises” in this week’s funding settlement but argues the “bigger prize” is post-Covid financial certainty. Thursday (17 December) should be the… dlvr.it/Rnj9dG pic.twitter.com/KLKjjuBqJE

    Room151 1 month ago

    PWLB consultation: Big change on the way but there are ‘grey areas’ and opportunities: The consultation on PWLB borrowing has concluded creating a new landscape for funding property acquisition. Our experts look at the implications. Tracie Langley The… dlvr.it/RndRvJ pic.twitter.com/KEqXEBmEfq

    Room151 1 month ago

    2021: Better income outcomes?: Sponsored article: Investors should be mindful of structural challenges posed to income generation as a result of rapid thematic change. Jon Bell looks at the prospects for the coming year.[...] dlvr.it/RndRsw pic.twitter.com/TxVk8aXkMq

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story UK money rates and yields
  • Next story LGPS announcement & reaction, London a “fiscal infant”, Housing borrowing cap, TfL rating

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK