COMMUNITIES AND LOCAL
GOVERNMENT News Release (097) issued by The Government News Network
on 22 May 2007
Local Government
Minister Phil Woolas has announced a six point action plan today
to give people greater control over how key assets in their
communities are run - from disused swimming baths to pubs and
community centres
The Opening the Transfer Window implementation plan challenges
councils to maximise the transfer of public assets to communities
in order to make services more responsive and create more
confident empowered communities with greater civic spirit. It
comes in response to a major report by Barry Quirk, Chief
Executive of Lewisham Council last week.
The implementation plan includes:
* A new £400,000 challenge for councils to become one of twenty
pilot areas who will transfer up to forty key assets from local
authorities to community organisations. Barry Quirk's team
will monitor the community benefits and public satisfaction with
lessons learnt spread around the country.
* Access to a £30m Cabinet Office Community Assets fund to
support community-led organisations in owning and running
buildings, to be managed by the Big Lottery Fund. The fund will
offer grants for refurbishment of local authority buildings,
ensuring they are appropriate for community use and for transfer
to third sector ownership or management.
* New guidance to be issued to all local authorities to help them
identify proactively all assets that community organisations could
run and provide a focal point for local communities.
* A new drive to promote powers available to residents to call
for assets to be devolved. Residents will be able to raise issues
through a Community Call for Action and even appeal to the
Secretary of State through a Public Request to Order Disposals
(PRODs) for her to direct councils to transfer assets.
* New training programmes for community organisations and local
authority officers to build the management skills necessary in
community organisations and encourage culture change in local councils.
* Greater collaboration between financiers, to maximise leverage
from existing and new investment in asset-based development.
As well as promoting a much greater sense of community, Ministers
believe there is clear evidence that where local people are
directly involved in running local services both public
satisfaction and quality rises.
Phil Woolas said:
"With more power being devolved to communities and greater
responsibility on councils to promote wellbeing, this year is a
key window of opportunity to breathe new life into disused public
assets and give people a bigger stake in the future quality of
life in their local area through community transfer.
"Our plan will get forty demonstration projects up and
running and provide councils with the tools and training they need
so that they can give every community the opportunity to tackle
their local priorities, whether those are about enhancing the
local environment, alleviating poverty or raising people's aspirations."
Launching the Quirk review last week Communities Secretary Ruth
Kelly challenged every council to appoint a senior figure directly
responsible for increasing community transfer and empowering local communities.
The implementation plan is not the last word in the
Government's response. We will also reconvene Barry Quirk and
his team after 12 months to review progress and maintain the
coalition of partners to continue momentum. Significant further
funding may be available following the Comprehensive Spending
Review and we intend to publish a further action plan next year.
Underpinned by safeguards to ensure good management, local
authorities have powers to sell or lease assets for as little as
than £1 where it is clear it is for the good of the community.
They can compulsorily purchase derelict property, require
landowners to clean up sites that are adversely affecting the
local neighbourhood, and the Government is providing greater
opportunity for people to demand action through new powers in its
local government legislation.
Other assets that could be transferred include redundant police
stations, old hospital sites, empty shopping parades, closed down
pubs on estates and leisure centres. Up to 1,500 community
organisations could benefit from the changes. It is estimated that
many more of the country's 9,000 village and community halls
and 4,500 community centres could be run by local communities.
Barry Quirk's review Making Assets Work found that there are
no substantive barriers to prevent councils transferring assets
into community management or full ownership. Powers already exist
for this but the report finds that many are not fully aware of
them, or are not using them to full benefit. Therefore a change in
culture is required so that every community has the chance for
more active citizenship, a greater role in running services and
owning assets, and improving wellbeing in their communities.
The successful New Deal for Communities programme was the first
step in the Government's drive to empower communities and
improve their quality of life in our most deprived areas. This was
followed by the Local Government White Paper and then the Local
Government and Public Involvement in Health Bill, which, when
enacted will give citizens and communities a clearer voice, and
greater freedom and powers to local government through an extended
community call for action, greater scope for creating parish
councils and enabling councils to make and bring into force byelaws.
Notes to Editors
1. Opening the Transfer Window: The Governments Response to the
Quirk Review is available here: http://www.communities.gov.uk/index.asp?id=1510746
2. Making Assets Work The report on Community Management and
Ownership of Public Assets by Barry Quirk, Chief Executive of
Lewisham Council was commissioned as part of the Local Government
White Paper, 'Stronger and Prosperous Communities' and
published on 15 May 2007. The report can be accessed here: http://www.communities.gov.uk/index.asp?id=1510515
3. A summary of Barry Quirk's recommendations:
* The publication of comprehensive, up-to-date and authoritative
guidance on all aspects of local authority asset management,
including within it detailed and explicit guidance on the transfer
of assets to community management and ownership.
* The publication of a toolkit for local authorities and other
public bodies on risk assessment and risk management in asset
transfer to communities.
* The provision of much greater access for local authorities and
community organisations to expert advice and organisational
development support relating particularly to the transfer and
management by communities of land and buildings.
* The smarter investment of public funds designated for
community-led asset-based developments, where permissible, through
the involvement of specialist financial intermediaries with
expertise in the field and the ability to achieve high leverage ratios.
* A major campaign to spread the word, through seminars,
roadshows, training, use of the media, online and published
information, and the dissemination of good practice, as well as
promotion of "bottom up mechanisms" such as the proposed
Community Call for Action and the existing Public Request to Order
Disposal (PROD).
4. Current powers and policies that relate to community
management and ownership of assets:
* A general consent (2003) for local authorities to sell property
at less than best value or to lease at less than market rent, to
improve the environmental, economic and social well-being of the
area, up to a limit of £2million difference. The Best Value
consideration must be met.
* In certain situations, local authorities have compulsory
purchase powers, which can apply to derelict private property.
* The Secretary of State has discretionary powers to direct local
authorities and certain other specified public bodies to dispose
of their interest in land and buildings, in response to a request
from a member of the public. The aim of this is to deter public
sector landowners from holding on to vacant land or derelict
buildings unnecessarily. This power, known as public request to
order disposal, or PROD, is not currently well known or used.
* Local authorities also have a discretionary power to require
landowners to clean up 'land adversely affecting the amenity
of the neighbourhood'.
* The Treasury revised its guidance to funders in 2005, so that
clawback provisions, while protecting public funding, do not
prevent organisations from using their assets to promote
enterprise and generating a surplus to promote their sustainability.
* Charitable foundations can by law disburse funds to
organisations which are not charitable, but which are promoting
community benefits, such as those constituted as Community
Interest Companies. This is not widely known amongst local
community groups.
5. Recent analysis into Best Value Performance Indicators has
found that the extent to which people believe they can influence
and participate in local decision making can significantly
influence their level of satisfaction with their local council.
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News Releases: http://www.communities.gov.uk