COMMUNITIES AND LOCAL
GOVERNMENT News Release (105) issued by The Government News Network
on 7 June 2007
Plans to ensure
that local government re-structuring will cut council tax and
deliver the maximum service improvements for local communities
under sound fiscal rules have been published today by Local
Government Minister Phil Woolas.
Sixteen proposals in thirteen areas across England are currently
out to consultation, after initial assessment against the
Government's strict criteria which require that they are
affordable and will provide stronger leadership, improve public
services, empower local communities and have a broad cross section
of support.
No decisions have been made about which of these proposals may be
implemented. But if more are assessed as meeting the criteria than
are affordable under rules on the use of reserves to finance
transitional costs, then the Government proposes to prioritise
those proposals.
Phil Woolas said:
"Re-structuring has the potential to make a real difference
to local communities and cut council tax. But if there are more
proposals that meet the criteria following consultation, than can
be afforded under sound fiscal rules, then we must ensure that the
proposals that go forward are the most cost-effective and deliver
the greatest improvement in services.
"That is why we are publishing a consultation on the means
for proritising proposals today and asking stakeholders for their views."
The consultation on prioritisation will run untill 18 July.
Following the consultation on the proposals which ends of 22 June,
the Government intends to make decisions on which proposals will
proceed to implementation.
Notes to Editors
1. If there are more proposals that meet the criteria than can be
afforded the prioritisation will first catogrise the proposals
into a number of broad groups reflecting the Government's
judgment about the extent to which they are likely to deliver long
term outcomes specified by criteria in relation to strategic
leadership; neighbourhood empowerment; vaule for money; and equity
in public services. The highest priority group will consist of
those proposals which we judge will deliver the outcomes to the
greatest extent.
2. Secondly, having grouped proposals, we would then rank
proposals within each group in favour of those which yield the
greatest efficiency gains for the lowest use of reserves. The
basis of the ranking would be: £ savings per head of population
for each £ of reserves used. This would effectively weigh the
benefits of the proposal against the public expenditure
implications of meeting its costs of implementation.
3. To view the consultation document please visit http://www.communities.gov.uk
Public Enquiries: 020 7944 4400;
News Releases: http://www.communities.gov.uk