A major new ‘localism’ proposal to cut red tape and hand over financial control of council service improvements and training to local government leaders was announced recently by Communities and Local Government Minister Bob Neill.
Bob Neill
Under new proposals, the Local Government Association (LGA) or a similar body will take control over how to use funding that gets redirected, or ‘top-sliced’, by Whitehall from the Revenue Support Grant (RSG) councils receive each year.
The LGA is to deliver greater openness and transparency. The LGA has from the 1st September committed to publish details of all future expenditure over £500. The LGA already seeks to abide by the principles of the Freedom of Information Act and the Local Government Secretary Eric Pickles recently called for them to be formally subject to the same FOI rules as central and local government.
At present Central Government directs the funding to be received by each of nine local government improvement organisations. In 2009-10 this ‘top-slice’ amounted to £45m.
In future, the total grant would be unringfenced and delegated to the designated local government body to allocate to funding programmes in the best way to improve council services, build strong local leadership, meet learning and development needs, and nurture robust local economies.
Ministers believe that removing the centrally-imposed restrictions on how funding is used will help to reduce overhead costs, red tape and waste in local improvement support, promoting better use of resources, better productivity and stronger local leadership.
The level of 2010-11 RSG top-slice funding would be set following the 2010 Spending Review in October, but the LGA has suggested a 30 per cent reduction in return for the whole amount being paid to a single specified body.
The consultation asks whether the RSG top-slice funding should go to a sole specified local government body and whether that should be the LGA or LGID (formerly IDeA). Full details of the consultation can be found
at: For further information and the consultation