1. LAAs and the new local performance framework November 2007 Paul Downie, Deputy Director, Local Improvement Support

2. 2 why is change so important? what does the new local performance framework mean in practice? how is the new framework being implemented?

3. 3 the prize A fundamentally new set of relationships between government, local areas and communities which secures better outcomes for local people.

4. 4 the background A challenge - equity, recognising differences and responding to ever-rising expectations LAAs provide platform for strong local leadership and basis for next steps in the improvement of public services Will mean: Shared endeavour between central and local Focus on improving outcomes Rigorous performance management (but fewer indicators) Making the best use of scarce resources Recognising success

5. 5 context – new performance framework Implementing Local Government White Paper – Strong and Prosperous Communities: Better outcomes for citizens and communities. Single focused set of national priorities – 198 national indicators in CSR07, only mandatory targets are the 16 statutory education and early years targets. Consultation on technical definitions to follow shortly Shared priorities for action in places - through new LAAs (up to 35 + local) with no mandatory targets; duty to co-operate and have regard to targets applies to the up to 35 designated targets and local targets Effective co-ordination of sub-regional outcomes through MAAs New, integrated, less burdensome assessment regime through CAA Capacity and capability to deliver (national improvement and efficiency strategy, regional partnerships) Coherent legislative framework in LGPIH Act (statutory LAAs, duty to involve, duty to co-operate, Best value and commissioning) Financial incentives – the new area based grant breaks the link between targets and funding; through £5bn reduction in ring fencing, and announcement of third round of reward grant

6. 6 what the framework means in practice

7. 7 Local priorities and targets ~35 targets LAA Local accountability to citizens Local consultation through the LSP with Partners and Stakeholders Better outcomes for citizens CSR07 national priority outcomes & 198 national indicators LSP view of local priorities Local targets monitored by LSP 'Designated’ targets monitored by LSP and GO new LAAs Local Challenges and Ambitions Sustainable Community Strategy Negotiation and agreement Cross-Govt view through GOs on priorities 16 statutory education and early years targets

8. Museums, Libraries and Archives Council National Park Authorities Natural England NHS Foundation Trusts NHS Health Trusts Police authorities Primary Care Trusts Probation Trusts and other providers of probation services Regional Development Agencies Sport England Transport for London Youth Offending Teams Any other organisations added by an order under section 104(7) of the Act Arts Council The Broads Authority Chief Officer of Police District authorities English Heritage The Environment Agency Fire and rescue authorities Health and Safety Executive The Highways Agency Jobcentre Plus Joint Waste Authorities Joint Waste Disposal Authorities The Learning and Skills Council in England Local Probation Boards Metropolitan Passenger Transport Authorities partner authorities in LGPIH Act

9. 9 phase 1 operational guidance Builds on the findings from the 17 dry run negotiations – co- designed and written with local areas, GOs and Departments Conveying the story of the place is key – understanding what lies behind the choice of priorities, with clear evidence of need and engagement of local communities, partners and GOs Critical for members to engaged in leading the local debate Need for balance between delivering long term ambitions and addressing current performance issues Partnerships should not be constrained by the blocks/themes used in previous LAAs – real opportunity to tackle cross-cutting issues (e.g. deprivation, economic development) Need to balance public services and creating prosperity Agreeing 35 priorities locally is not always easy and takes time

10. 10 phase 1 guidance (continued) Government needs to be better at developing a coherent view about which national priorities are important and where – not assume everything is important everywhere. Key is Department/GO relationship Government needs to support whole LAA – understanding and valuing underlying story, and connections between indicators, supporting GOs in negotiations Important not to see national and local priorities as separate – dry run testing suggested 75-80% overlap Importance of GO recommendation to Secretary of State and resolving disagreements.

11. 11 To be published in November 2007 – deals with more technical issues. Likely to cover: Use of the national indicator set when agreeing priorities to identify potential designated targets; Where priorities not covered by national indicator set consider whether need to set local targets; No longer formal enabling measures mechanism – obstacles to delivery should be resolved and taken into account in setting targets; Consider whether targets need to be set at neighbourhood level In two-tier areas are sub-county targets or district-specific targets needed Stretching targets; trajectories – ‘a contract’ GO will be responsible for resolving disputes before their recommendation goes to Ministers; may include case conferences between Whitehall Depts or Whitehall and area. phase 2 operational guidance – negotiating targets

12. 12 phase 2 operational guidance – what and when LAA is a collection of targets and no longer contains detailed information as with ‘old’ LAAs, however, GO may need information and will discuss this with each area. Key Milestones: November – discussions with GOs about evidence - everyone reviewing proposed priorities for places December – partnerships and GOs to identify working list of proposed priorities January – submission of draft LAA priorities March – submission of revised outcomes and proposed targets June - formal submission of LAAs to GOs - GOs make recommendations - SoS for Communities & Local Govt to formally designate targets

13. 13 phase 2 operational guidance – performance management Performance on meeting national priorities will be assessed using data on all 198 indicators Annual Review based around CAA risk assessment and may lead to negotiation of changes to designated targets, e.g. where priorities have changed locally – will therefore take place Nov – Feb First Annual Review will be a transitional review and forward looking, i.e. focus on robustness of delivery arrangements, risk management, baselining performance where not available at sign-off (do not expect any changes to targets, but can be raised on a case by case basis)

14. 14 LAAs – new finance model To provide maximum flexibility for local authorities to target resources on what matters most to their communities, we will allocate funding through: Revenue Support Grant wherever possible. Area Based Grant - a new non-ringfenced general grant – where funding needs to be allocated using specific policy criteria Specific Grants where necessary – our presumption is against this At least £5 billion of specific grants moving into non-ringfenced general grants - around £1 billion into RSG and over £4 billion into ABG Intend to announce individual allocations of ABG on a three year basis as part of the local government finance settlement – maximising stability and certainty of funding for local government ABG will be paid from April 2008. Third round of Reward announced as part of CSR

15. 15 Sustainable Community StrategyNational Indicator Set Funding supports delivery of national and local priorities for the area area Area Based Grant Revenue Capital Single Capital Pot Local income (e.g. council tax) Local income (e.g. capital receipts) Formula Grant (RSG & NNDR) Specific Grants (revenue) Specific grants (capital) Supported Borrowing Local Area Agreement (up to 35 targets + local targets) – the only other targets for LAs will be DCSF statutory ones Any additoinal aligned funding, Any additional aligned funding.

16. 16 To be published in November 2007 for consultation – clarifies legislative basis for key elements of new performance framework. Will include: Local Strategic Partnerships – the role (identifying priorities overseeing progress, co-ordinating consultation and alignment of resources); The leadership role for local authorities (driving consensus on priorities, community representation and scrutiny); Key principles for LSP governance (streamlined board, rep of third and business sectors, draw on economic, social and environmental expertise); The duty to inform, consult and involve local people (need for greater opportunities to influence but discretion as to when and how); draft statutory guidance

17. 17 draft statutory guidance (continued) 1.Sustainable Community Strategies and their relationship with the remaining statutory regional and sub-regional plans; 2.Agreeing an LAA The role of the ‘responsible authority’ (consult and co-operate) What constitutes co-operation? (ongoing negotiation thro’ LSP, sufficient authority to take decisions, applies to all targets) Approval, designation and revision – the role for the SoS 3.Delivering shared priorities The importance of strategic commissioning the implications of ‘having regard’ to targets (clearly reflected in the business planning, resource allocation and internal performance management of individual partner authorities)

18. 18 multi-area agreements MAAs are an agreement between two or more top tier authorities (and their partners) with Government. Some outcomes (especially economic development) best dealt with at sub-regional level. Authorities and public sector partners will share collective responsibility for outcomes Individual MAAs will be bespoke and voluntary First wave of MAAs due to be signed in June 2008

19. 19 National improvement and efficiency strategy to focus investment on: enablers of innovation and improvement support to meet the ambition of new LAAs business process improvements and efficiency strengthening sector-led support LGA framework for support and intervention, as the support that ultimately prevents the need for intervention is most effectively directed by the sector itself. Government powers to intervene in the best interests of local people, where under-performance is significant. Enhancing the role of Regional Improvement and Efficiency Partnerships. We expect RIEPs to allocate sufficient focus to the enablers of improvement and efficiency such as: partnership working, effective strategic commissioning, strong political leadership, And priorities identified through LAA and MAAs build capacity and capabilities

20. 20 How the framework is being implemented: key milestones Report from dry run testing and ‘Phase 1 guidance’ on negotiating new LAAs – 18 September CSR announcement – 8 October Royal Assent to Local Government and Public Involvement in Health Bill – 30 October Consultation on technical definitions of indicator set – early November Joint inspectorate consultation on Comprehensive Area Assessment (which will include arrangements for inspection in 2008/09). – 19 November Overall narrative on the new performance framework – November (followed by narratives tailored to different sectors) Phase 2 of operational guidance on new performance framework & LAAs (late November) Consultation document on draft statutory guidance – (duty to co-operate; duty to involve, BV and commissioning role –– late November National Improvement and Efficiency Strategy – December Regional roadshows – November to December Negotiation of new LAAs and MAAs – now to June 2008