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Leaders of Local Authorities in England - page 2 / 7





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  • shifts many other budgets – including budgets for GPs and Police and Crime Commissioners – to the local level, so that you can pool and prioritise this money more effectively;

  • sets out plans to implement the first phase of Community Budgets in 16 areas from April 2011, by pooling departmental budgets at source for 16 places, to tackle families with complex needs, with the intention that all areas will be able to take this approach from 2013; and,

  • radically reforms the Housing Revenue Account, so that you will have much greater ability to run your own affairs, provides over £2 billion on Decent Homes in total over four years and enables councils who own housing to improve the decency of tenants’ homes with enough money to more than halve the backlog by


Savings on local red tape

These new powers come on the back of radical reductions in the bureaucratic reporting and inspection requirements which hold councils back.

We are already abolishing the Audit Commission, have ended Comprehensive Area Assessment, scrapped 4,700 Whitehall (LAA) targets, are dismantling the National Indicator Set and are ready to scale back significantly the plethora of data reporting requirements which cost you time and money - the LGA estimate that complying with government data demands and inspection costs local authorities nearly £300 million.

Local growth

We are replacing the Regional Development Agencies with local enterprise partnerships,

which put councils and civic leaders in the Regional Growth Fund (worth £1.4 billion) to heavily dependent on the public sector - this housing growth and market renewal.

driving seat.

We are





also introducing a in places currently








The New Homes Bonus will reward communities that build houses - planning permissions granted now will count against the Bonus.

We have already confirmed that councils will be able to borrow against future growth in Business Rates to fund infrastructure projects. And the Localism Bill will go even further in giving councils control over the issues which matter to local people, including providing councils with the general power of competence they have long called for.

Local savings

This unprecedented shift in power means that you will be well placed to tackle the inevitable challenges ahead. Overall, revenue funding from Government will reduce by 26% in real terms between 2010-11 and 2014-15 – excluding schools, fire and police. That means, on average, a reduction of 7.25% a year.

The reduction in formula grant funding for fire and rescue authorities will be 25% over the period. Reductions for fire and rescue services are weighted to the second half of the spending review period, so that fire and rescue authorities have time to prepare.

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