BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value The best summary is provided by: Good source of information to get started:

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value Best Value Management Framework… Establish authority wide objectives and performance measures Agree programme of fundamental performance review Undertake fundamental performance review Set and publish performance and efficiency targets Independent Inspection Areas requiring intervention

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value Four important elements of reviews are: Challenge – justify the service Compare – with the best Consult – engage with local communities Competition – attempt to achieve ‘efficiency gains’

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value Local Performance Plans Need to be made in which authorities: Report on current performance Identify forward targets Comment on means to achieve the plans

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value The Audit Commission will oversee systems of internal and external audit. External auditors will check: Whether performance and resource information is accurate Plans have been drawn in accordance with statutory requirements Plans are realistic

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value In the event of failure then then the Secretary of State can require: An improvement plan to be drawn up An authority to accept external management help Services to be put out to competition Services to cease being provided by a local authority Responsibility transferred to another authority

BS1033 Local Government – Continuity and Change 5. Modernising Local Government – Best Value Audit Commission reports that…

Changing gear Paul Kirby - Acting Head of Inspection Peter Thomas - Associate Director, PSR

Changing gear 1The national report l How well are councils performing? l Why do some improve but not others? l Have inspection, audit and be helped? 2 Changing gear l What needs to change?

key evidence key arguments key conclusions key lessons

The evidence l Public satisfaction l Performance indicators l Inspection findings How well are councils performing?

Signs that the decline in public satisfaction is on the turn 21% 19%

l average performance against 75% of BVPIs had improved l gap between better and worse councils narrowed for 75% of PIs l the worst 25% of councils have improved on almost all the indicators Encouraging signs of improvement in BVPIs

Inspection star ratings 37% of services are good or excellent % 35 % 2% 8%

Improvement judgements 50% are likely to improve...

Improvement judgements … but fair/poor services less likely to improve 42% 65%

between services education and social services 4 l housing, cultural, environmental ? poorest services least likely to improve 7 and for different councils l Welsh and district councils less well set l new unitaries doing better There are significant differences

The evidence l Views of councils l BVPPs and BVRs l Inspection and audit findings Why do some improve but not others?

Deciding what to improve BVR selection and scoping is key - l key lesson learned l less reviews l greater proportion of cross cutting BVRs l but challenge remains hard

Working out how to improve l good progress on consultation l little progress on compete l bogged down in compare l need to maintain challenge throughout

Implementing improvements Councils say they are coping well l easy to get approval l unless deciding between priorities l hard to integrate with budget process

Implementing improvements Councils say they are coping well l easy to get approval l unless deciding between priorities l hard to integrate with budget process Inspectors concerns l quality of action planning? l commitment of people & resources? l recommendations challenging?

How are councils doing overall? 22% doing well 24% hard going 54% coping

Four ‘building blocks’… ownership of problems & willingness to change a sustained focus on what matters capacity & systems to deliver performance and improvement best value integrated with the day job … help identify typical patterns

51% coasting Inspections suggest two-thirds are coasting/poor-performing based on scores for 77 councils 16% poor 28% striving 5% top

The evidence l MORI survey l Views of inspectors l Others’ research Do inspection and audit help?

Views of inspection (1) “[it needs] much more emphasis on how to improve and not to be told that we’re not doing very well” “its too resource intensive” “too much in-depth analysis of small services makes the cost-benefit questionable” “quality of inspectors is variable” “I’d like to see abolition of compulsory inspection of every service in favour of a risk-reward approach” “they should inform us about best practice elsewhere so we can make improvements”

Are inspection and audit useful? l audit: 69% satisfied l inspection: 71% members satisfied, 79% members find it useful officers less happy: 58%/59% l  score: 77% of members agree/62% of officers l improvement judgement: 70% of members agree/49% officers

Views of inspection (2) challenges 4 evidence ? credible inspectors? speaks to local people 7

Is BV and external review proportionate to risk? l Audit best meets the needs of those struggling l Inspection most useful to those who have responded well

Is there enough advice and support? l A big investment in inspection what about support? l How should lack of capacity and willingness be tackled? l Is timing of external challenge is helpful? l What about lessons from inspection and sharing good practice?

Changing gear

Raising the game l Follow the best l Right challenge in the right places l More competition l Higher aspirations

Differentiation - not one size fits all

Audit Commission action l More challenge l Differentiate audit and inspection l Less focus on following reviews l Clearer and stronger service inspections l Joined up audit and inspection l Clearer information for local people

Government action l One plan l One dialogue l Differentiate l One assessment

Integrated performance planning UNIFIED PLAN Negotiation on 100% of resources and performance including ‘top 12’ targets Single allocation of rewards and freedoms Targets tied to annual report card Move from multiple statutory plans to single dialogue Independent validation LPSA BVPP Statutory Plans Annual Report Card

Summary l More challenge l Councils are getting better - but pace and scale of change disappointing l Big opportunities for improvement l Councils need to have higher aspirations l Commission - listened and learnt l Government needs to simplify regulation