Ministers are 'minded to implement' LG Association proposals that would streamline national services for councils and help deliver savings.

The government this week (25 August) launched a consultation* with councils on these proposals – with officials describing communities secretary Eric Pickles as 'impressed by local government leadership of improvement'.

The LGA has proposed that it or LG Improvement and Development (formerly the IDeA) should take over how funding for national services for councils – top-sliced each year from authorities' revenue support grants – is spent.

At present, the government directs the funding to be received by each of nine central organisations serving local government.

In 2009/10, the top-slice totalled £45m, and the amount available for 2010/11 will be set in the government’s spending review, which will have its outcomes announced on 20 October. But the LGA has suggested a 30 per cent reduction in return for the whole amount being paid to a single specified body and not ring-fenced.

Its proposed reforms represent just a small part of the Local Government Group’s 'offer' to the new government, which covers a series of measures for reducing red tape, making savings, and devolving funding and responsibilities to the local level via place-based budgets. 

Baroness Margaret Eaton, LGA chairman, said: "The purpose of the LG Group is to help councils serve local residents more effectively by carrying out national tasks on behalf of the whole sector. This very welcome localism initiative will focus effort on the achievement of key national outcomes, save money and ensure that resources are used in the most effective way possible. We are delighted that the government has responded so positively and creatively to this initiative".

Launching the consultation, communities and local government minister Bob Neill said: “By cutting the red tape around improvement funding, councils can push even harder to make sure they have the tools and expertise to be fully focused on delivering frontline services that matter to people most and getting the best value for taxpayers' money."

Ministers believe that removing centrally-imposed restrictions on how funding is used will help to reduce overhead costs, red tape and waste in local improvement support, promoting better use of resources, better productivity and stronger local leadership.

Under the proposals, the LGA or LG Improvement and Development would decide how best to use the funding to deliver objectives and key outcomes, agreed with the secretary of state for communities and local government.

The LGA has suggested six objectives for top-slice funding:

• strong local economies
• a smaller, less costly, more local state
• local leaders galvanising social renewal
• increased productivity
• transformed workforce and
• a single system of self-regulation.

* For the full consultation, which closes on 6 October, visit the Communities and Local Government website

http://www.lga.gov.uk/lga/core/page.do?pageId=13323980