LINK: http://www.ft.com/cms/s/7b1a3b22-64e9-11db-90fd-0000779e2340.html


UK announces local government shake-up

By Nicholas Timmins Public Policy Editor

Published: October 26 2006 13:09 | Last updated: October 26 2006 13:09

Local authorities are to be required to create a stronger, more
executive style of leadership, with new powers to require cooperation
with a host of public sector bodies under government proposals
published on Thursday.

At the same time, local citizens will be given fresh powers to demand
action from them.

But councils still have to wait to see how far they will, in return,
get new powers over transport and economic regeneration, for example,
or any new freedoms to raise local taxation.

Ruth Kelly, the local government secretary, on Thursday described the
government's white paper as "a new settlement between central
government, local government and citizens".

But how far that will result in new powers locally will depend on the
outcome of Sir Michael Lyons's review of local government finance and
the council tax, due to report in December, on decisions to be taken in
next year's comprehensive spending review, and on a paper to be
published on transport.

Thursday's white paper said councils must move to executive style
leadership, with one individual in charge of council services and the
better coordination of local services, business improvement and
"place shaping".

That will come either through a directly-elected mayor, a
directly-elected executive, or an elected leader or mayor chosen by
councillors, each serving a fiour-year term.

Each would have executive powers but would also be subject to challenge
and oversight from strengthened overview and scrutiny committees
composed of other councillors. Annual elections, common at present,
"can discourage strong, ambitious and stable leadership," Ms Kelly
said.

Overview and scrutiny committees would be given new powers to demand
papers and appearances within 20 days from health bodies' officials,
the police, and a wide range of other government agencies, all of whom
would be obliged to to cooperate with councils in drawing up local area
agreements for improvement.

In return central government targets would be cut to around 35 key
priorities, with local agreement on priorities within that, and with
the number of performance indicators cut from some 1200 to 200.

Local citizens would have the power to demand action - or at least a
response - from the council through petitions. Parishes and local
councils would be given back the right to set byelaws to tackle issues
such as antisocial behaviour and a new power to issue on-the-spot fines
or fixed penalty notices.

User satisfaction surveys would play a bigger part in assessing the
quality of council services, and local authorities would be encouraged
to give councillors their own small budgets to tackle local issues
quickly.

The aim is "to give local authorities a stronger role in leading
their communities", with central government stepping back "to allow
more freedom and flexibility at the local level", Mr Kelly said.
"In exchange, we expect to see more accountability to local
citizens".