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Ministers have been forced into a series of policy shifts this week raising questions about the future of key local government legislation. The MJ can reveal communities secretary Eric Pickles is considering a major U-turn on plans to front-load local government's 27% spending cuts over the next four years. Following last month's Comprehensive Spending Review, councils were warned they face grant cuts of 8.4% next year, 6.5% in 2012/13, 0.8% in 2013/14 and 5.4% in 2014/15 That led to an avalanche of town hall complaints about the cuts falling disproportionately over the first two years, and the likely effect on services. Whitehall sources this week hinted the detailed council funding settlement, due next month, could now contain mechanisms to spread the cuts more equitably over the CSR period. At a County Councils Network conference on 22 November, Stephen Hammond, parliamentary private secretary to Mr Pickles, said front-loading ‘has exercised ministers for some time'. He told county leaders: ‘‘Wait for the settlement. We have also recognised that point and believe we have overcome that problem by finding extra flexibility.' A CLG spokesman later confirmed: ‘We are working towards a settlement that will help to protect frontline services. Ministers are looking at a range of mechanisms, including damping.' Cllr David Shakespeare, leader of the LGA Conservative group, later told The MJ: ‘If the secretary of state can find a way of smoothing the spending reductions over four years it would be very welcome.' But changing the CSR settlement would be controversial, and unpopular at the Treasury. It would also represent the latest potentially damaging coalition U-turn. On Sunday, education secretary Michael Gove ditched leaked plans to create a national funding formula for schools that would have bypassed councils. It followed heavy criticism by councils and LGA chairman Baroness Margaret Eaton. On Monday, housing minister Grant Shapps announced controversial proposals to allow councils and housing associations to introduce two-year social housing tenancies. Former CLG policy adviser, Tony Clements, warned benefit-dependent families could lose homes within months of tenants securing work under the new plan, which he said would undermine the government's broader work incentives. But Mr Shapps has built a get out clause into his eight-week consultation period. ‘We are consulting, and will decide, in the light of views expressed, on other rules for the use of fixed term tenancies. Those include whether the minimum period should be more than two years,' a CLG spokesman confirmed. Critics said that raised the question of why ministers agreed the proposal in the first place. The three potential U-turns also followed reports the imminent Localism Bill, expected to hand councils wide-ranging powers, has been delayed because of wrangling over new powers for directly elected ‘super mayors' across England. Local government minister Bob Neill initially indicated councils could appoint mayors and then go to a public vote. However, Mr Pickles has since said he would prefer direct public elections. A CLG spokesman said that while coalition discussions about the Bill were ‘ongoing' it had been delayed by ‘the hectic parliamentary schedule'. Shadow local government secretary Caroline Flint launched a scathing attack on CLG ministers – and other Whitehall departments co-ordinating local services. Labour's former housing minister accused coalition decision-makers of a ‘confused and damaging' approach that ‘threatens to undermine frontline services'. Commenting on this week's events, Ms Flint said: ‘It's a sign they are in chaos and haven't really thought through what localism is about. [Ministers] are not working in a coherent fashion in the CLG or across government. ‘Michael Gove has changed direction over schools funding. The housing announcements are half-baked: the documents do not clarify in what circumstances tenants on shorter-term arrangements would keep their home if they secure work. ‘And Eric Pickles…rushed into the front-loading of cuts without realising the scope of councils' challenge.' Responding to housing concerns, a CLG spokesman added: ‘The Government believes that a two-year minimum tenancy is right. Ministers have been clear that they expect the norm to be much longer.'

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WHITEHALL

Ministers poised for front-loading U-turn

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