ConservativeHome's Bournemouth 2006 Conference blog

Nick Cuff: Does social responsibility equal local responsibility?

The buzz word of this year’s conference was “social responsibility”.  What we didn’t learn from a local government context, was whether more social responsibility would mean more real local responsibility.

Yes, the rhetoric was positive with numerous front benchers taking swipes at Labour’s “centralisation” of the state both in the hall and in the fringes.  However, it became increasingly apparent as the conference wore on that outside the quick wins of binning the Standards Board or removing regional assemblies, the Party has still to resolve the most significant issue: local government finance.   

Without meaningful reform of finance, councils will always be reliant on Whitehall purse strings no matter how you tinker with structures.  Currently, the balance of funding for local councils is based approximately on 75% central funding with the remainder raised through council tax.  Labour has been hesitant to address this largely because there is no silver bullet to tackling equalisation i.e. how do you ensure poor areas of the country receive adequate levels of funds.   

The result of this inertia has been an increasingly complex funding formula to ensure that finance is distributed evenly across the country.  It is here where the law of unintended consequences lures her ugly head.  The status quo means that efficient councils actually lose money to Whitehall, and inefficient councils have an incentive to carry on doing what they are doing – or not doing anything as in many cases.

The Party line is to hold off until Sir Michael Lyons’ long awaited review of local government publishes its findings in December.  This is the right line to take as the report’s recommendations will steer and inform the debate over the next year.  It would be foolish to pre-empt what has been a genuinely in-depth review of an issue where all the main parties should be developing a political consensus.   

Unfortunately, it looks increasingly likely that we cannot leave this to Labour.  Many are now beginning to fear that despite the length of time taken, Sir Michael’s review will not provide a long term solution to the balance of funding.   

Labour is simply not prepared to swallow a bitter political pill and give up the current powers they possess over Town Halls.  With Sir Michael based in the Treasury – the bastion of centralism – he will be hard pressed not to contradict Whitehall’s over arching stance.  Worse still, DCLG will publish a White Paper next month on local government structures, this is likely to take the wind out of the sails of any gutsy announcements Lyons may wish to deliver.   

The result is that Labour will continue to be socially irresponsible.  Their policies are creatures of the long grass.  There in the tall thickets, you will find local government finance lurk alongside its long-term neighbours, pensions reform and energy policy.  No labour hand will touch a stinging nettle.

Therefore, it will be up to us to take the responsible decision and hold a serious debate on how we reform local government finance.  This of course was never likely to happen in Conference 06, but as we drift rapidly towards the next election, I hope Conference 07 and 08 will prepare the ground for meaningful change which will put an end to a decade of centralisation. 

Nick Cuff: No to pay rise and nowhere on finance

Caroline Spelman today ruled out the idea of paying Councillors city wages, describing it as an impractical solution to the problem of tackling Councillor diversity.  The idea was mooted in a wide-ranging debate on how the Conservative Party should develop the role of locally elected members.  Concerns were raised that many Councillors were retired and not representative of wider society.

Henry Smith, Leader of West Sussex suggested the answer was to give more power to local councils and more freedom.  That way local government would once again be seen as an attractive career to young professionals.  Smith then identified the proliferation of quangos such as RDAs and Learning and Skills Councils describing them as roadblocks to the success of local councils.

Douglas Carswell MP, also speaking at the event, urged the Conservatives to adopt meaningful policies which would empower local people.  It was agreed by all the panelists that local government finance must be tackled.  Carswell once again renewed the call for a local sales tax, something which Spelman was not prepared to be drawn on.  He went on to question the commitment of all political parties to the localist cause.

There seems to be little consensus amongst the policy community in general about how you go about tackling the thorny issue of local government finance.  Spelman was keen to wait for Sir Michael Lyons' review of the issue which is to be published in December.  Sir Michael has been criticised in some Conservative circles, perhaps unfairly, for his Labour Party background (he was a Labour Councillor in Birmingham).

He was conspicously absent at conference this week despite attending both Labour and Lib Dems.  There are also concerns that he has as yet to find a solution to finance which is both politically acceptable and practical to implement.

Nick Cuff: City regions - kill or cure?

Potential London mayoral hopeful, Nick Boles, joined ex-London mayoral candidate Steve Norris in calling for City Regions across the country. The event was sponsored by Policy Exchange, Centre for Cities (IPPR) and the British Property Federation.

In an engaging hour which saw a panel of property and local government policy wonks quizzed by an audience of Councillors and party members, issues were raised concerning the powers of the London mayor through to what a future framework for local government might look like.

Boles, Director of Policy Exchange, was keen to draw a distinction between the approach of a Conservative London mayor and Ken Livingstone's micro-management of many London issues. He was joined by Norris in supporting powers which enabled the Mayor to join up governance in the capital, but not at the expense of robbing local autonomy to the London Boroughs. Of particular concern were new powers which could in theory allow the Mayor to dictate what colour your front door would be.

However, it was City Regions which aroused the most debate. Many in the policy world see the model, whereby cities across England would have autonomous political centres and spending powers, as a way of bridging the north, south divide. Nick Boles said:

"Cities need to find their own destinies. Some will work and some will fail. But in a hundred years time we will have thriving and distinctive regional centres."

It was argued that City Regions have the potential to tackle a diverse mix of regional challenges from housing shortages, through to economic activity. Norris was keen to use British regional centres grow to replicate the French model whereby centres of industrial excellence are located across the country.

However, question marks remain. First of all, where would a proposed City Region begin, and a local authority boundary end, and how big would a city need to be to become a city region? Would smaller regional entities club together to form their own citadel?

Even more importantly, are new structures really going to be the answer to problems to what many would say could be solved by strong leadership. It seemed that messy details were not on the menu, but what was clear, is that there is a growing consensus that City Regions are on the agenda and cannot be avoided.

Nick Cuff: A forward look at local government speakers

Nick is ConservativeHome’s local government reporter at Bournemouth this year.  He is a Councillor in the London Borough of Wandsworth and works in public policy.  In his first piece for Conservative Home, he reviews the possible highlights of this year’s conference from a local government perspective.

This year’s conference should play host to a battle of ideas concerning the future direction of local government.  With all the major players out in force at the fringes, those delegates wearing local government hats are sure to enjoy the show.  However, many will be wondering where the beauty parade ends and policy substance begins.  After all, the Conservatives don’t have an enviable track record when it comes to localism in Government.  Indeed, David Cameron was the first to acknowledge at the recent LGA conference that the Tories centralised rather than localised power.

But all politicians find it very difficult to give up power I hear you cry.  Indeed look no further than the Labour Party’s 1997 manifesto to confirm this trend.  One passage optimistically stated:

“Labour is committed to the democratic renewal of our country through decentralisation and the elimination of excessive government secrecy.”

Young shiny, New Labour jaws would drop aghast if, upon reading this statement in the heady days of 97 they were then magically transported to the year 06 confronted by some home truths about the current administration’s record.  In the space of the last two years alone, money spent annually on quangos and other public bodies soared by 50 per cent, to £123.8 billion. 

At this conference, it will be job of those working directly in councils, localist think tanks and advocacy bodies to convince the current crop of movers and shakers in the parliamentary party that localism isn’t a fad – it must be a policy reality. 

Many would go further to say that it is integral component should a Conservative revival be sustained. Localism as a principle must be embedded. The signs are good, we have already committed to abolishing regional government – a hangover from Prescott’s experiment with the North East.  Regional government will be joined in the dust bin by the shambolic Standards Board. Cameron has also suggested that a Conservative administration will disentangle the complex ring fencing which has plagued local government finance over the last decade.  How this will work in practice remains to be seen. 

So what will be the key debates, where we will they take place and more importantly can we expect anything new in terms of policy?  I asked some of the local government movers and shakers to give me their hot tips for Bournemouth 06:

What is the must see event for local government buffs and why?

“The number one must attend event will be the Daily Telegraph debate chaired by Charles Moore (Monday 2nd, 17:45, the Purbeck Lounge, BIC) .  It will pit advocates of both centralism and localism against one another.  Should the Tory party run things from the centre or should we as a party at last accept a more localist approach to financing, policing and education?”

- Douglas Carswell, MP for Harwich and Clacton.

“Housing is a big issue in Camden, and Shelter's event "Building Hope" with Michael Gove (Sunday 1st, 1745, Durley Suite, BIC) looks good.  "Governing in our Cities" (Tuesday 3rd, 1pm, Kensington Suite 1, Metro Palace Court Hotel) with Caroline Spelman MP also looks interesting. But, as usual, the best place to be will be the bar of the Highcliffe into the small hours of the morning....”

- Cllr Chris Philp, former Bow Group Chairman and Camden Councillor.

"I'm looking forward to the BSA fringe "If Not In My Back Yard, Where Should We be Building Houses?" with Sir Sandy Bruce Lockhart (Tuesday 3rd, 12:30 pm, the Westborne Suite, BIC).  For me this is a crucial question for the localist debate - what happens when local priorities (e.g. preserving green belt) differ radically from national priorities (delivering new homes and getting young people on the property ladder). Localism has many attractive merits but it mustn’t become a NIMBY's charter. I'll be interested to hear Sir Sandy's views on this question."

- Richard Price, Local Government Analyst, Citigate Public Affairs

What in particular would you like the Conservative Party to commit to this conference?

"I’d like to see Cameron give teeth to his powerful commitment to abolish performance controls.  What the Conservatives need to do is make it clear how national government will drive local improvement without bureaucracy."

- Dr Dick Sorabji, Head of Policy, New Local Government Network (NLGN).

A fundamental over-hauling of local authority funding and taxation. One of the principle problems for local government is town and county halls' reliance on central funding and therefore compliance with central dictates.

Local election turnout is low because the electorate have sussed that council administrations can only nuance policy and service delivery. A new source of funding, such as a local sales tax, would be fairer, create a downward pressure on revenue raising and restore the vital link between taxation and representation. From this flows the need to democratise the decision making process over other locally delivered, highly visible and emotive services such as the police and health.”

- Cllr Henry Smith, Leader of West Sussex County Council and PPC for Crawley.

"All our discussions with the Shadow Cabinet show that David Cameron will build on his clear commitment for a devolution to local people and the local councils that represent them which he spelt out at the Local Government Association Conference in July. This is an immensely exciting agenda and I hope this will be an immensely exciting conference for local government."

- Lord Sandy Bruce Lockhart, Chairman of the LGA.