This instalment of our new Municipal Missions Manifesto series, which explores what a reset of local government should look like under the next administration, features Richard Harbord.
The former chief executive of the London boroughs of Richmond and Hammersmith & Fulham takes a broad look at some useful changes that could take place under the next administration.
I have to start by declaring that I have never written a political manifesto in my life. I have, of course, written corporate plans – they were generally realistic documents embracing the known situation.
Interestingly I have offered to write corporate plans on the basis of the winning manifesto. My offer was always declined on the grounds that that was not what the manifesto was for!
I can’t help feeling that a sound, realistic manifesto at this point in time is going to be difficult to write.
It seems to me that there is a need for a number of things in the background to help. A sound and growing economy with interest rates and inflation under control, a long-term vision, and sufficient resources to make it plausible.
Unfortunately, we have none of those. Interest rates are likely to fall perhaps in July. Inflation has fallen. But the rise in petrol prices in April indicates that the current trend cannot be relied upon. Public sector debt rose last month and there is generally an air of uncertainty. There are insufficient resources for the plans the various parts of the public sector need, and long-term vision is impossible. We don’t do long-term vision in this country.
There is no doubt that the funding of the public sector needs a radical improvement, but the difficulty is seeing how that can be achieved. In local government we need a new fair funding review. Strangely, the last one made good progress, but the draft report did not surface after the last general election. To be successful a review needs additional resources otherwise it is obvious that some authorities will lose out. At the last review 100% of business rates was to provide the additional money.
But there has to be a proper review of funding. That needs to include all sources including specific grants and levelling up monies. It also needs to be achieved in a fairly short time space and not take four years to report!
If it is to be comprehensive it needs to include devolvement of various things to local authorities. It needs a thorough review of council tax with more bands, annual valuations and no central intervention on annual increases. Under general rates, local authorities were accountable to the electorate for these decisions, and it worked.
Business rates needs to be reviewed. There is much being done on prevention of fraud although some authorities do not have resources to use in that way. But the amount and type of reliefs needs reviewing to be equitable between all types of businesses.
Additional sources of income are needed. There is a considerable number of people who believe the motorist is running local government. They need to be part of the solution but perhaps we should look again at environmental or tourist taxes.
I find myself conflicted on one major area. That is re-organisation. Generally, I am opposed to this as I do not think it is a real solution and it is costly, everything stops while it is undertaken and too many able staff move out.
However, looking at authorities in Surrey and Berkshire for example, there are many difficulties being caused by just not being big enough to deal particularly with care services. Perhaps there needs to be greater encouragement to working together.
There is a desperate need to implement changes to adult care. There were proposals in the Dilnot Review which could be modified and used.
As stated elsewhere, children’s services needs some form of early action. The cost of placements has risen out of all proportion to finance available and overspends are obviously going to happen. If you speak to commissioners who have to do their best for the child, the cost of a difficult placement with extra care is instantly budget breaking. The answer to this is really very long term. The selling of authority homes to private equity companies has meant that an investor satisfying return is essential. This was recognised in the Spring Budget but only a fraction of the capital needed was discussed there.
If nothing is done, I fear this may be a straw that breaks the camel’s back.
The difficulty is that local government tends to end up towards the back of the queue. The NHS is always consuming additional resources largely to finance deficits. It needs a re-organisation to ensure funds are used in the best way.
Then there is law and order. It is obvious that the prison service needs capital and revenue to come back from a dire situation.
Across the public sector there are enough qualified people available to provide proper services and a public sector wide manpower plan is needed.
Other areas are also in need. Housing and temporary housing being cases in point.
On highways, we have been told £16bn is needed to restore the highways infrastructure. We will all understand that there are roads near me that you can only drive safely if you are on the wrong side of the road!
A number of these actions have been delayed for years because of political consequences. I am not convinced that a sensible solution can’t be found for reform of council tax and for elderly care, which would be welcomed generally.
I have somewhat revolutionarily believed for the last 10 years that a small increase in the basic rate of tax might be helpful.
I look forward to reading this whole series of blogs and seeing at the end Room151’s polished manifesto!
Richard Harbord is the former chief executive of Richmond and Hammersmith & Fulham councils.
For more information on Municipal Missions Manifesto, read our introduction to the series here. All articles in the series are collected here.
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