Localism Bill: The five-year plan

Ministers will shortly kick-start a radical devolution of power from Whitehall to localities – including a ‘general power of competence' for councils – but face immediate criticism over the absence of new financial freedoms and scrutiny regimes. Communities and Local Government secretary Eric Pickles is expected to present his long-awaited Localism Bill on Monday. The Bill was originally scheduled to be published in late November, but has been hit by late delays. Some reports suggest the hold up is down to last-minute discussions over controversial elements of the Bill, including plans for directly elected mayors and police commissioners. ocalism Bill: In Focus Control shift as powers move to communities Pickles senior pay battle opens new front in Bill Elected mayors under scrutiny Home rule but not for long-term tenancies Boris wins big concessions The Bill is expected to contain over 200 clauses and outlines the coalition government's reform programme for local government, housing, planning and local democracy. The centrepiece of the Bill is what CLG officials this week described as an ‘all-powerful tool' empowering councils to take ‘unhindered' any action they deem necessary to improve the economic, social and environmental wellbeing of their area or residents: the general power of competence (GPC). Through the GPC, councils will be handed the space to govern their locality with less interference from Whitehall. Speaking to The MJ prior to the Bill's publication, Mr Pickles said it would ‘sweep away' hundreds of central government edicts and council ‘permissions' handed down from the centre. ‘[This Bill] is the centrepiece of what the Government is trying to do to shake up the balance of power in this country. For too long, everything has been controlled from the centre – and look where that has got us. ‘Central government has kept local government on a tight leash, strangling the life out of councils in the belief that bureaucrats know best,' he said. But Mr Pickles added there would be ‘restrictions' to the GPC. ‘There will be no militias – we will not allow councils to invade France,' he joked. More seriously, he added: ‘There will be no new taxes.' While local government experts welcomed the devolution of major powers to councils and neighbourhoods, it is the absence of accompanying financial freedoms that has left some questioning whether the coalition's reform programme has the ability to deliver genuine ‘localism'. Ed Cox, director at the Institute for Public Policy Research, told The MJ: ‘I'm broadly positive about the Government's idea that powers need to be decentralised and given to councils and communities. ‘But there are some big challenges in terms of what these powers mean in practice. Specifically, I think power follows money and the absence of new financial powers for local authorities leaves me to question whether they will make effective use of new general powers during a period of spending cuts. Is the Government simply handing down the axe?' Mr Pickles plans to review local government finance next summer, but Mr Cox said it would have made more sense to co-ordinate the devolution of powers with new financial freedoms. Andy Sawford, chief executive of theLocal Government Information Unit, concurred: ‘Instinctively, I like the GPC idea. But the real question is what will councils choose to do with it? Will they seek to extend their activities when they are thinking about cuts? If so, how are councils to fund any extra activities?' Both Mr Cox and Mr Sawford also expressed concern over local accountability for other powers contained in the Bill. Mr Pickles has moved to partially bypass town halls by providing residents with opportunities to assume control of local public services or assets – and to block or approve developments. But while both policy experts applauded the community-level engagement, they argued councils should be handed sufficient powers to co-ordinate and scrutinise services provided at arm's length of town halls. Mr Cox said: ‘If groups of residents – or neighbourhoods – can take control of services, whose interests will they truly represent? ‘What framework is in place to stop extremist groups or, more likely, the interests of the sharp-elbowed middle classes or "Nimbys" from taking over at the expense of local residents who are less organised or vocal?' Caroline Flint, shadow CLG secretary, said the coalition's reforms exposed a lack of trust in local government. ‘Labour supports the principle of devolving power. Local authorities should be flexible, responsive, modern and innovative in shaping the services local people use,' she said. ‘The worry is the coalition is using localism as a smokescreen for the frontloaded cuts. The Government's policies on schools, elected police commissioners and its unnecessary NHS reorganisation also suggest they see local government as an obstacle to devolving power, rather than as a vehicle for decentralisation.'

Title

WHITEHALL

Localism Bill: The five-year plan

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