GOOD IS NOT ENOUGH
- The baseline will be raised over time to improve services
- Dozens of councils may lose high ratings
- Improving authorities could be downgraded
Local government faces a public relations nightmare with dozens of councils expected to lose their 'good' and 'excellent' ratings under the new comprehensive performance assessment.
As it unveiled the final CPA framework the Audit Commission said it wanted to set councils a harder test.
Even councils who are continuing to improve could see themselves downgraded under the new system, which will test authorities more stringently on value for money and service-user focus.
Commission chair James Strachan said the bar had been raised to drive improvement across local government.
"The baseline should be realistically raised over time so local government continues to innovate and improve in ways service users and taxpayers value," he said.
But councils fear the new tougher regime will leave them explaining to residents why they dropped a CPA category even if they are deemed to be continuing to improve.
Local Government Association chief executive Sir Brian Briscoe said the onus was on the Audit Commission to make clear the extent to which councils are improving, rather than focusing attention on categories. "[Otherwise] it may well turn into a bad news story for local government," he said.
"What's important is not what division you're in, but the quality of the services you provide for the public. We also believe that once freedoms and flexibilities have been earned by councils they should be able to keep them."
The use of resources element - under which councils must score three out of four if they are to be excellent - is seen as a particular booby-trap.
Peter Rogers, chief executive of Westminster City Council, said there was an "overwhelming desire" to reduce the number of councils rated as 'good' or 'excellent' by changing the goalposts on use of resources. "A lot of 'excellent' councils will struggle to get three on this methodology," he said. "There will be a rush to rattle through quick fixes to ensure boxes are ticked, rather than lose the ['excellent'] rating."
Ben Page, director of the MORI Social Research Institute, said even the best councils would struggle to show the levels of user engagement demanded by the new system. "The two questions are, do you do this stuff effectively and, more importantly, how do you use it to make a difference to services," he said. "You have to show you've done something different as a result of consultation, because if you haven't, then why are you doing it?"
Corporate assessments - judging councils on ambition, prioritisation, capacity, performance management and achievement - will be carried out in a rolling programme over the next three years.
In return for higher standards, the commission is pledging "a considerable reduction" in the regulatory burden on councils over the next five years.
It has also offered help to manage the impact of demotion. It will phase in the new requirements of the value for money judgment. Until all councils undergo the new form of corporate assessment, those whose score goes down will continue to have their CPA rating based on their previous score.
It will "work with stakeholders" over summer and autumn to "publicise how we are raising the bar".
Frances Done, managing director for local government at the Audit Commission, said reputation management was a "very big issue" which the commission was discussing with councils and the LGA.
"We will play our part in ensuring the world knows it's a harder test, so by Christmas it's not going to be a big shock that 'x' percent of councils have moved down," she said.
The direction of travel statements to be issued alongside councils' overall ranking would also be "crucial" in communicating the message that individual councils were demonstrating improvement.
Key Points
>> Explicit judgment on value for money
>> Greater weight on meaningful consultation with service users
>> Direction of travel statements
>> Corporate assessment to consider achievement in context of shared priorities
>> Annual service assessments based on performance data
>> Annual performance assessments of services for children and young people.
What does the new methodology mean for...
Chief Executives
Chiefs face the possibility their council may be downgraded, despite improving. They are concerned the system will not deliver the reduction in regulation pledged by the Audit Commission.
"The [regulatory] burden is being shifted from the Audit Commission to authorities."
Peter Rogers, chief executive, Westminster City Council
Finance managers
Finance directors have one of the toughest challenges. Councils who meet minimum requirements will be scored at two rather than three, debarring them from 'excellent'. From next year councils will also need
to score at least three for value for money to be 'excellent'.
"The process will be more time-consuming."
Julie Danks, corporate director of resources, Stockton-on-Tees BC
Communications managers
Communications officers are bracing themselves for a barrage of local media interest if their council is one of those to lose rank. If a council drops a category under CPA, they doubt a positive direction of travel statement will undo the damage to the organisation's reputation.
"It makes our job more difficult. Bad news sells newspapers."
Natalie Yost, media manager, Southwark LBC
Human resources managers
Personnel faces scrutiny in the corporate assessment. If councils are to excel on issues like diversity, partnership and community leadership, their staff must be equipped with the right skills.
"We have to develop a workforce that can deliver these things."
Steve Traynor, treasurer, Society of Chief Personnel Officers and HR manager, Pendle BC
Housing managers
Housing directors face performance information-based assessment with inspection reserved for the poorest performers. The management/strategy split is reflected with half of scores for 'managing council housing' and half for 'housing the community'.
"When inspectors visit you can explain local factors behind results. That would be lost if they rely on data."
Simon Hendey, head of housing and community, Borough of Poole
Environment managers
Environment and transport directors must progress with transport plans, planning applications, road casualty reduction and recycling to avoid low scores. The commission will frown on councils that attract government intervention under the Traffic Management Act 2004.
"Looking at road deaths over only three years may not be sound."
Dr Alastair Jefford, president, County Surveyors Society
Children's services managers
The annual performance assessment
will look at council education and child care services. Once every three years joint area reviews by multiple inspectorates will look at the whole public sector performance in an area on children's services.
"What we need is greater clarity over what is relevant data."
Tony Eccleston, director of education and libraries, Bracknell Forest BC
Adult social care managers
More emphasis will be placed on the experience of users and value for money in this year's inspections. The Commission for Social Care Inspection and the Audit Commission are coming together to carry out inspections.
"They are finding it difficult to join up the inspection regimes and come up with something streamlined."
David Johnstone, director of social services, Devon CC
Regeneration directors
Regeneration directors face scrutiny on economic regeneration under the corporate asssessment sustainable communities block. The service assessment consultation looks at physical regeneration, for example management of brownfield land.
"There's a requirement to be more proactive and to work with partners to address issues."
Seema Manchanda
Head of economic regeneration, Haringey LBC
Comment - Exceptional performers will shine
The new comprehensive performance assessment methodology is opening up clear water between the genuinely exceptional councils and those who just succeed in delivering services well.
Effective management and sound corporate leadership, underpinned by strong finances, will no longer be anything like enough to make the grade of excellence.
From now on, councils will, in accordance with the new Labour model, need to prove themselves adept at partnership working, community leadership, diversity, equality and a host of other skills largely ignored by the tick-box CPA of the past.
The top of the CPA ladder was becoming perilously overloaded, and councils such as Sheffield City Council and Camden LBC may relish the challenge of differentiating themselves.
But for the likes of Kingston upon Hull City Council and others stranded at the bottom, there must be dismay at the prospect of lagging yet further behind.
What do you think of the new CPA regime?
- I'm up for the challenge - can't wait
- Its pros and cons are finely balanced
- Oh God, not again
By Kerry Lorimer, finance editor for the Local Government Chronicle (LGC)
on Thursday, 16 th June 2005.
03/07/05
