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There is a big role for local government to play during a recession, as Robert Hill points out, in an open letter to the prime minister This could be local government's moment. No-one would wish a recession on a country or a locality. But today's circumstances provide the opportunity to showcase what modern place-making and community leadership are all about. The credit crunch creates the platform for local authorities to demonstrate emphatically their relevance and their ability to respond to community concerns. Councils are awash with advice and the LGA, IDeA and the Regional Efficiency and Improvement Partnerships are all, rightly, pitching in with support. The LGA's recent report Global slowdown: Local solutions contains a raft of useful case studies. But what is missing is, to use a politician's word, a clear narrative of local government's role in combating the recession. The first thing to say is that local government must recognise its limitations. Local action, however imaginative and effective, cannot substitute for macro economic policy. The main counter-cyclical effort in a recession lies with government. Moreover, many of the interventions which best complement national activity will need organising or co-ordinating at a regional or sub-regional level. Even with these caveats there is still a big role for local authorities. So here is what I propose the LGA should offer to the prime minister. Dear Gordon These are unprecedented times. The economic threat to the country is grave. As local authority leaders, we recognise that central government, together with the Bank of England, have the main responsibility to take action to revive the economy, stimulate employment and protect people's homes. However, as local authorities, we stand ready – to borrow your own phrase – to do whatever it takes to support the Government. We have the endorsement of all our member councils for taking immediate action in the following four areas which we believe have the potential to add enormous practical value to national efforts to sustain economic wellbeing. Keeping abreast of development The LGA will establish a ‘war room' to provide weekly and monthly reports to the Government. As well as analysing data on local and regional trends in employment and the housing market, it will provide an early-warning system for identifying potential knock-on consequences of the recession – for example, the impact on local childcare markets, crime and safety, social cohesion and mental health. The war room will also act as a centre for exchanging and promoting innovative local responses. Reducing bankruptcy and repossession Working through Regional Development Agencies (RDAs), Business Link and city strategy/MAA groupings, authorities will provide business planning advice and help secure lines of credit to employers by liaising with banks and other lenders – so complementing what the Government is doing nationally. They will aim to reduce payment turnaround times and maximise rate relief for small businesses. Together with other public sector agencies, councils will also ensure that businesses are aware of the full range of local procurement opportunities for public sector work. For households threatened with repossession or struggling to pay bills, councils will ensure that in every area there is: intensive advice and support – including an early-warning system with lenders and courts, to identify homes at risk of repossession a brokerage service to help with renegotiating loans or accessing cheaper credit support for local credit unions and credit advice services a local fuel poverty strategy, including maximising the take-up of free insulation measures to reduce fuel bills a vigorous campaign, in partnership with Job Centre Plus and local voluntary groups, to ensure people are claiming the full range of tax credits, benefits and childcare support to which they are entitled. In parts of the country where there are large numbers of new homes which cannot be sold in the current market conditions, councils will seek to negotiate arrangements to buy, or lease homes for a limited period, which can then be rented out to meet the needs of local families. Preparing to deal with major shocks to the local economy The evolution of the credit crunch has been unpredictable in its trajectory and severe in its impact. Local authorities will work for an economic recovery, but we recognise that we must also prepare for the worst. Councils, their business and voluntary partners, and Job Centre Plus will make sure plans are in place to respond to the contingency of a major local employer going bankrupt or laying off hundreds or thousands of workers. Contributing to recovery In each local strategic partnership (LSP) public and private sector partners will urgently review their capital programmes, land banks and local development framework to see whether and how they can be adjusted, so as to sustain regeneration and support the construction sector. We would propose having early discussions with the Government on how local partners can be given additional flexibility and encouragement to pursue this strategy. Urgent talks with ministers and the Homes and Communities Agency to agree models and resources for expanding the supply of social rented housing are also needed. All councils will support their RDAs by sustaining their work on local economic strategies by developing their transport infrastructure and investing heavily in skills' programmes – particularly for the long-term workless. We would welcome an early meeting with you to discuss the implementation of this programme. Yours sincerely ... Robert Hill is a former adviser to PM Tony Blair and now works as an independent policy analyst

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WHITEHALL

Manifesto for a recession

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