IHBC members will be aware of the Institute’s emphasis and research into the roles and values of conservation staffing and services in Local Authorities (LAs) so of special interest will be the latest Commons Select Committee report into the financial stability of Local Authorities, which highlighted the potential threat to statutory services given the effect of continued cuts amd the impact of changing legislation on delivery of housing and development.
The Public Accounts Committee writes:
The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts, today said: ‘Councils must cope with funding reductions of around 37% between 2010–11 and 2015–16. These cuts have not hit all local authorities equally, with reductions ranging between 5% and 40%. Councils with the greatest spending needs – the most deprived authorities – have been receiving the largest reductions. Further cuts could not just undermine the entire viability of most optional services, but might threaten some statutory services in these areas. Value for money could be undermined by reductions in spending which lead to ‘cost-shunting’ between local government and other service providers – for example, reductions in social care provision leading to bed blocking in NHS hospitals.
The Department for Communities and Local Government has overall responsibility for funding to councils. However, it takes a largely ‘hands off’ approach and does not have a good enough understanding of the impact of funding reductions, either on local authorities’ finances or on services. It looks only at data on spending and has little information on service levels, service quality, and financial sustainability. Without at least an idea of the amount of funding required to maintain statutory services to a minimum standard, it is hard to see how the Department could ensure that local authorities are able to fulfil their statutory duties.
Looking to the future, if funding reductions were to continue following the next spending review, we question whether the Department would be in a position to provide assurance that all local authorities could maintain the full range of their statutory services. The Department cannot at present satisfy us that it understands whether it is feasible and practical for local authorities to deliver the service transformation necessary to maintain financial sustainability. Nor does it understand what the effects on service users would be.
Late funding announcements by the Department in this Parliament, coupled with incentive-based mechanisms such as the Business Rates retention scheme, have increased financial uncertainty which undermines the ability of local authorities to act according to longer-term savings plans. This uncertainty over future income has meant that local authorities have built up significant increases in their financial reserves, up to a third of annual net revenue expenditure. This takes even more money away from services at a time of spending reductions.’
Margaret Hodge was speaking as the Committee published its 34th Report of this Session which – on the basis of evidence from Sir Bob Kerslake, Permanent Secretary, Department for Communities and Local Government, Matthew Style, Director of Local Government Finance, Department for Communities and Local Government, and Sharon White, Second Permanent Secretary, HM Treasury – examined the financial sustainability of local authorities 2014.
View the Public Accounts Committee news release
View IHBC research into conservation staffing ‘Implementing the Heritage Protection Reforms – A Second Report on Local Authority Staff Resources’ Produced by English Heritage, the Association of Local Government Archaeological Officers and the Institute of Historic Building Conservation in August 2010
View the IHBC Research Note 2013/1 ‘Loss of senior conservation staff and senior conservation posts in England: March 2011 – April 2012’
IHBC newsblogs on local government reform and service delivery
