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The playwright William Shakespeare once wrote, ‘I did send to you for certain sums of gold, which you denied me'. Sadly for local government last week, we lost a potential source of gold as the ruling from the Appeal Court now significantly restricts our capacity to deliver efficiencies through the previous channel – relying on the Local Government Act 2000's so-called ‘wellbeing powers'. Now, we could suggest that the law is an ass. In fact, we could suggest that this ass is wearing a straw hat and selling cheap rides on a cold, deserted beach somewhere no one wants to go. But that would be defeatist – and would not address the real issue. What we must learn, absorb and focus on is what this stops us from doing, and what needs to change. The real issue is a simple one. If local government is to respond to the ever-increasing efficiency requirements, the demands from our residents to deliver value for money, the need to bring about economic, social and environment benefits to communities, and to develop a shield to protect itself from the recessionary impact and the inevitable reduction in the public sector purse, then it needs a general power of competence. The wellbeing power has demonstrated, in a court of law, that it has fallen short of its ability to support us in delivering this agenda, and is making us, well, a little unwell. A time comes when positive, swift and decisive action is required to address an imbalance and provide assistance in these most difficult of times. Shakespeare also wrote ‘Be great in act, as you have been in thought'. It is time for central government to act. It is now time for a power of competence for local government. Nathan Elvery is deputy chief executive at Croydon LBC

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WHITEHALL

Money Matters

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