austerity

Local Democracy in Crisis?

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Peter Hetherington

Battered by fourteen years of austerity, is local government losing its once-proud standing and status? Probably. For a start, It’s no longer as ‘local’ as it should be. And it certainly isn’t ‘government’ as we once knew it.


These days, we sometimes tend to lump ‘democracy’ and ‘crisis’ together in a global context, forgetting that close to our doorsteps – in countless civic centres, town and county halls – there’s another crisis: restoring faith in local democracy, while sustaining councils literally facing insolvency.

At a hybrid event, organised by the Centre for Urban and Regional Studies at Newcastle University, we asked a simple question at the start: Do we need a new, positive direction for once-powerful towns and communities where meaningful democracy has disappeared as local government has withdrawn?

We attracted a great range of speakers putting, broadly, two cases: first for a new local government structure in England based on economic geography embracing combined authorities for big city areas alongside large county-wide single purpose unitary authorities, underpinned by a more equitable funding formula; and, secondly, for varying degrees of town and parish governance, sustained by participatory democracy, including citizens assemblies, with powers – parks, libraries, leisure facilities for instance – devolved from existing larger authorities. Often, such an asset transfer is born out of necessity because larger councils can’t afford to keep them anyway and parishes/towns can raise money through a council tax precept while sometimes creating stand-alone community interest companies.

The case for a genuine new ‘localism’ appeared strong. That’s because, currently, a continuing process of abolishing councils to create larger units with few, if any, local roots has created a sense of powerlessness, a collective loss of identity with little or no attachment to people and places. Fifty years’ ago England had almost 1200 councils, from the smallest urban/rural district to the largest city. “We were run by our own,” recalled the writer, broadcaster and ultimate polymath Melvyn Bragg, in his 2022 memoir ‘Back in the Day’. Born in Wigton, Cumbria, his small town had a rural district council (which I knew well): “We could challenge the elected councillors who made the decisions” Bragg continued. “They were not a separate cadre…they were just people you had been to school with…(approach) on the street…to whom you could write a personal letter knowing it would be read, considered, answered.”

No longer. His council disappeared in 1974. Today, after several rounds of ‘reorganisation’ under the dubious label of efficiency – although there’s little concrete evidence of cost saving – that number has been reduced to 317, with little if any public debate. A forthcoming devolution White Paper is expected to advocate more reorganisation and even fewer councils in a country where local authorities already cover much larger areas than in mainland Europe.

Against this background, it’s probably no surprise that Carnegie UK, in its recent ‘Life in the UK’ index, reports that a lack of trust in politics and government is undermining collective well being. Three-quarters of people, says Carnegie, feel they can’t influence decisions. Surely reconnecting them begins locally. But how local?

If the government’s approach so far is a broad definition of ‘taking back control’, could an over-arching contradiction be emerging? Will the apparent obsession with more all-purpose councils, the prospect of an all-unitary England – similar to the structure in Scotland and Wales – make people feel even more distant from power, disaffected? Carnegie insists that restoring faith in democracy should be the Government’s ‘mission of missions’.

If that’s one challenge, there’s another, interlinked: the crisis of financing local government, with 7 councils theoretically insolvent and many more heading that way; legally, they can’t go bust and have been forced to borrow the equivalent of pay-day loans on a mega-scale to stay afloat, adding to a debt mountain. Now Conservative-run Hampshire has said issuing a section 114 notice – prelude to technical insolvency – is “almost inevitable”, with a sting of others close behind. And as Prof Andy Pike, and Jack Shaw have outlined in their recent excellent, but chilling paper (‘The geography of local authority financial distress in England’) 96% of English councils won’t balance their books by 2026-27.

Of course, alongside that unparalleled financial crisis in local government, we’re also facing an alarming democratic challenge nationally with the lowest turnout ever recorded in the recent general election; almost half the electorate didn’t vote! Surely, the place to renew trust in the democratic process begins at the grass roots, perhaps reviving some of the 10,000 town and parish councils, some of which want to take over functions from larger authorities (some are obliging out of necessity). Could this – call it double devolution – provide one small way forward?

I’m aware there’s a danger that events, like the latest one at CURDS addressing the crisis in local democracy, can produce a combination of hand-wringing and hot air. But, hopefully, we concluded with a practical, positive outcome. As Professor Jane Willis, geographer and champion of community empowerment – now in Cornwall- noted: “It’s not all gloom and doom – there is good news.” In her county, communities are taking back control, again out of necessity – a really positive story and a lesson for elsewhere? Willis advocates a new social contract under a layered system of local government to “re-franchise” people.


In the meantime, the chair of the event urged those present to make their views known to MPs, and the government, as the forthcoming devolution White Paper foreshadows a pre-legislative consultation process. As Professor Andy Pike, of CURDS, noted in summing up, one leading question needed answering above all: “What is local government for, and how to fund it?”


All we know so far is that the White Paper, according to the Treasury, will include …“working with councils to move to simpler structures that make sense of their local area with efficiency savings from council reorganisation helping to meet the needs of local people…”. Contradictory or otherwise – will more larger councils “make sense” of local areas? – we must surely intensify a campaign for a genuine new ‘localism’, embracing places, communities, towns and some cities now without any form of local government. That doesn’t necessarily mean sidelining the case for a new – and/or revised – local government structure in England tied to a ‘needs’-based funding formula. The current one favours the richer parts of the country and penalises the poorest with the lowest tax bases.


But the time for national government to act is during the first year or so of a new administration. It assuredly won’t go down well with the ‘middle England’ target readership of – say – the Daily Mail. There’ll be howls of protest. But it must be a priority to bring a sense of fairness to a deeply unequal country and, equally importantly, deliver some hope to voters in the so-called ‘red wall’ seats who either returned to Labour at the last election or voted for an ascendant Reform. We live in a fragile democracy. Restoring faith in government, local and national, begins in community, neighbourhood parish and town. We need the Labour government to think big and act local. We haven’t much time.

Peter Hetherington is a British journalist. He writes regularly for The Guardian on land, communities, and regeneration.  He is also a vice-president, and past chair of the Town and Country Planning Association, former regional affairs and northern editor of The Guardian and the author of the 2015 book, Whose Land is Our Land? The use and abuse of Britain’s forgotten acres, and the 2021 book, Land Renewed: Reworking the Countryside.

Equipping local governments to deliver national and local priorities

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Jason Lowther

Today we launched our latest report, Equipping local government to deliver national and local priorities. Local government is critical to the delivery of the new government’s five key missions, and to improving life across the country. We argue that, once a series of critical reforms are in place, government should have confidence to equip local authorities with more power and (when public finances allow) prioritise additional resources there, enabling local and national priorities to be delivered. But critical reforms are needed in financial management, audit and performance management, and in community power and participation.

The new government inherited many challenges. Council budgets per person in England have been cut by 18% in real terms since 2010. Councils are hitting financial crises: twelve have issued section 114 notices in the last six years, compared with zero in the previous 17 years. Representative institutions at all levels of government are suffering from declining legitimacy and increasing polarisation. Local government plays a vital role in increasing democratic relationships and trust.

But councils’ wide remit, local knowledge, democratic accountability, public service ethos, and key roles in working with partners and shaping local places make them critical to the delivery of all five of the government’s key missions. Local governments are best placed to operationalise solutions to interconnected problems, for example, improving public transport and encouraging more cycling and walking helps meet net zero targets. It can also deliver health benefits, reducing the burden on the NHS, as well as increasing productivity by giving businesses access to a wider and healthier workforce.

Action is required to ensure that councils are fit for purpose to make the type of contribution that central government requires of them. Underlying this is a lack of confidence in local government on the part of ministers and civil servants.  We have identified three areas in which the government must be confident if it is to equip the local level with more power: financial sustainability, performance standards, and community power and participation. 

Policy recommendations

Financial arrangements

  1. Provide multi-year funding.
  2. End competitive bidding and deliver a “single funding pot” for each council/ local area that has been allocated fairly and sensitively to the needs and assets of the community.
  3. Abolish council tax capping.


Audit and performance management

  1. Strengthen the evaluation of councils’ performance management.
  2. Make OFLOG independent and extend its remit and approach.
  3. Reintroduce effective management and support of council external audit by independent bodies.


Community power and participation

  1. Strengthen the role of councillors as facilitators and catalysts of community-driven change.
  2. Embed participatory governance to ensure lived experience and marginalised voices drive policy and service delivery.
  3. Develop public-commons partnerships and community-wealth building to support community-driven sustainable economies.

As the Layfield Commission concluded 50 years ago, local government funding should promote responsible and accountable government. Beyond welcome recognition of acute financial challenges and commitment to multi-year funding settlements, there is a pressing need for additional immediate and longer-term action to improve Councils’ financial position and strengthen local accountability.

Local authorities have different needs for funding, depending for example on levels of population and its composition, deprivation, and spatial factors. Central and local government should develop updated funding formulae and funding models which are as simple as practicable whilst capturing the key elements of local need, and as transparent as practical in operation.  There are many reports researching available options for fairer funding, approaches to fiscal devolution, and local government funding options. 

Local audit, performance regimes and regulation each have a part to play. Both a parliamentary select committee and the Redmond Review into the Oversight of Local Government have sought to investigate the failings in local government audit.  The latter in 2020 critiqued market driven audits, stating that the new audit arrangements have undermined accountability and financial management. 

The adoption of the Redmond Review’s proposal for an Office for Local Audit Regulation would provide oversight on procurement, management, and regulation of external audits of local authorities. The government could extend the oversight of local government performance management processes while avoiding the creation of an overly powerful national regulator, by adopting key recommendations on the future arrangements of OFLOG (the Office for Local Government).

Proximity means that local government can play a crucial role in improving relationships between government and citizens. By creating conditions to mobilise the diverse expertise and resources of communities, local government can ensure that public policies and funding are informed by the assets, priorities and needs of local people and places.  There are already many examples where local government has made progress with innovations such as citizens’ panels and juries, the delegation of power to the hyper-local level and in building inclusive economies. 

We have over thirty years’ worth of research on deliberative democracy, social innovation, and co-production evidencing the value of collaboration with diverse communities and stakeholders. Participatory governance is less about finding perfect solutions and more about transforming organisations to engage with communities in processes of co-producing mutual understanding, shared solutions, and a sense of collective ownership.  

Our work on the 21st Century Councillor can help with enabling the role of councillors not just as democratic representatives but also as facilitators and boundary spanners between institutions, communities, civil society and local businesses.

Community-wealth building, pioneered in Preston and several London boroughs, can help strengthen the local economy with insourcing, linking public procurement to local cooperatives and social enterprises. These novel forms of governance can be formalised through Public-Commons Partnerships.

Equipping local government to deliver national and local priorities will leave a long-lasting legacy of a well-resourced, effective, accountable, and engaged local government.

The full report is available here

Equipping local government to deliver_WEB_singlesDownload

The report was edited by Jason Lowther and Philip Swann, with particular thanks to the following contributors (alphabetically by last name): Dr Koen Bartels, Dr Sonia Bussu, Prof Nicole Curato, Dr Timea Nochta and Dr Philip Whiteman. With thanks to other colleagues and associates in INLOGOV.

Rewiring local government for citizen engagement_WEBDownload

Why do philanthropic foundations engage with city governments?

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Dr Ruth Puttick

The fact that governments face an array of challenges is a well-rehearsed argument. City governments across the globe are tackling a myriad of social, economic and environmental issues, from trying to reduce homelessness, improving health and wellbeing, or increasing educational attainment.  In parallel, philanthropic foundations’ accumulated wealth and knowledge means they are increasingly welcomed as a government partner in addressing social needs. So why do philanthropic foundations engage with city governments?

The UK Association of Charitable Foundations defines philanthropic foundations as “charities with private, independent, sustainable income that supports individuals and/or organisations” (Pharoah and Walker, 2019, p. 1). In 2015, there were over 10,000 charitable foundations based in the UK and some of these are engaging with city governments.

In the U.S. context, philanthropic foundations have a long history of interacting with the government (Zunz, 2012) They have traditionally funded physical structures like libraries and opera houses, and in recent years, foundations have increasingly working directly with governments to tackle issues as diverse as climate change (Madénian and Van Nest, 2023), gun control, and poverty reduction (Barber, 2014; Nijman, 2009; Moir et al., 2014). Yet, there has been little exploration of this phenomenon in the English context.

Based upon the case study analysis of three contrasting English cities, Bristol, Manchester, and Newcastle, I drew upon qualitative interviews and policy reports to understand the interconnections between foundations and city governments.

Why do city governments and foundations collaborate

Philanthropic foundations can be a capacity-building partner of city government, providing direct funding and non-financial resources to help city governments solve problems.  Philanthropic foundations provide city governments with direct funding and non-financial resources, including data, research, events, and other outputs, such as toolkits.

Foundations are motivated to improve public services, develop new approaches to problem-solving, advocate on policy issues, and fill funding gaps left by austerity. Foundations select city governments based on personal rapport and perceived ease of working.

City governments are motivated to engage with foundations to access resources, for foundations to help amplify the voice of city governments, and because foundations are perceived as less bureaucratic and more trustworthy funders.

Barriers to city government and foundation collaborations

Foundation engagement with city governments is inconsistent. This study found that certain city governments (in this case, Manchester and Bristol) had more partnerships with foundations. The reason is that foundations often will not work with city governments when the city government’s priorities are unclear, if they are hard to engage, or when there is a perceived slow pace of change in city hall.

On the part of city governments, a scarcity of resources can prevent them from seeking foundation resources. With the impacts of austerity still lingering, it may have been surmised that austerity could prompt cities to seek foundation support, instead, this study has found that a lack of internal capacity can prevent the city government from seeking foundation involvement.

Implications for policy and practice

City governments interacting with foundations in England is a relatively nascent and under-explored phenomenon. As well as few academic studies, there is often an opaqueness in the nature of these collaborations. A lack of transparency can hinder scrutiny, which is problematic if city governments and their partners are to be held to account. Going forward, a key facet of city government engagement with foundations should be a commitment to transparency in the nature of the collaboration and an openness to sharing evidence of the impacts of the interactions on the outcomes that the foundation and city governments are trying to achieve.

Areas for future research

As a relatively underexplored topic, more research could usefully explore foundation engagement with city governments across England on a larger scale, particularly to understand the implications for accountability. Futuremore, future research could usefully explore whether philanthropic foundations prioritise collaborating with city governments over different types of organisations, such as charities, and if so, whether this is because city governments enable potentially larger degrees of policy influence than more “marginal” political institutions, such as NGOs or community groups.

To find out more about the research, please contact Dr Ruth Puttick, [email protected]

The full article is available here.

Picture credit: https://www.jolietymca.org/blog/the-significance-and-joy-of-giving/


Dr Ruth Puttick runs a research consultancy and is a Senior Research Fellow at the Institute for Innovation and Public Purpose (IIPP) at University College London. She has over 15 years of practical research experience in the public and private sectors advising on public sector reform, innovation and impact. She served as a Senior Policy Advisor in the UK Government’s Open Innovation Team, and before that, she worked at Tony Blair Associates, a global management consultancy, helping establish the policy and research team in the government advisory practice. Prior to that, she spent six years at Nesta, the UK’s innovation agency. Ruth is on X.com @rputtick and can be contacted at www.ruthputtick.com

Empowering Communities: How Councils Can Boost Wellbeing Amid Austerity

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Alice Munson

This is the first of two blogs resulting from this year’s INLOGOV undergraduate summer intern project, which examined how councils can boost wellbeing amid austerity. This first article summarises some of the key literature, the second article (next week) will explore practice examples.

In a period characterised by fiscal austerity, local governments confront major hurdles in providing basic services while working with tight resources. Spending cuts have far-reaching consequences for communities, frequently having a negative impact on the public’s well-being and standard of living. In response to these issues, community initiatives have arisen as viable mechanisms for minimising the harmful effects of austerity policies whilst also promoting community belonging in neighbourhoods. This paper will begin with a literature review surrounding the topic, examining studies that have demonstrated the impact of community initiatives.

This article starts with a literature review examining the potential for community initiatives to achieve wellbeing outcomes, emphasising how councils may successfully collaborate with communities to reduce the negative effects of budget cuts in an age of permanent austerity. Since the 2008 global financial crisis, several nations have undertaken austerity measures that have considerably impacted local government finances and services (Lowndes and McCaughie, 2013). This ‘age of austerity’ has caused councils to reassess their approach to providing public services and ensuring community well-being (Hastings et al., 2015). In response to the spending, councils can and, on occasion, have turned to community initiatives as a possible way to preserve or improve wellness within the community.

Research consistently demonstrates that community-led initiatives can effectively address service gaps resulting from austerity measures while enhancing local decision-making practices and overall community well-being. Crisp et al. (2016) believe that community-led alternatives can assist in addressing service gaps caused by funding reduction. Their research of community-based organisations in the UK revealed that these projects might assist in areas such as employment, training and social care. Evans (2008) and Fletcher-Etherington (2010) also draw attention to the advantages of community-led initiatives, particularly highlighting enhanced decision-making procedures. Building on this concept, Fung and Wright (2003) provide further empirical support through their examination of participatory governance cases. Their research demonstrates that including the community in the decision-making process can result in more successful and fair policy results, which are more likely to improve the community’s general well-being.

Community initiatives are vital for improving public health outcomes, with research consistently showing their positive impact on physical and mental well-being. There is a strong link between community initiatives, social capital, and health outcomes, as revealed in various studies. For example, Kawachi and Berkman’s (2000) research provides compelling evidence that social connections, cultivated through community efforts, are associated with better physical and mental health. This link between community involvement and health is further explored in specific contexts, such as mental health initiatives. Knifton et al. (2010) investigated community-based mental health programs in Scotland and found that they have the potential to reduce stigma, increase social support, and improve access to mental health services. Moreover, South (2015) offers a comprehensive guide to community-centred approaches to health and well-being, emphasising the crucial role of local government and the NHS in supporting these initiatives. South’s research underscores the importance of integrating community-led approaches into broader health and social care strategies, highlighting how such integration can lead to more effective and sustainable health outcomes for the community. Strong partnerships between the council and the community, along with insights from studies like Kawachi and Berkman (2000) and Knifton et al. (2010), are crucial in this process. These studies underscore the value of community-centred approaches in improving public health and suggest that policymakers and health professionals should prioritise integrating community initiatives into mainstream health and social care strategies to promote positive well-being outcomes.

Community initiatives provide significant economic and environmental benefits, offering viable solutions for councils to improve well-being within financial constraints. Imbroscio (2013) has found in many cases that locally-driven community initiatives can create more sustainable and equitable economic outcomes compared to top-down approaches. Krasny and Tidball (2009) examined community-based environmental initiatives. They discovered that these programs not only benefited local ecosystems but also promoted social learning and community resilience. These findings are consistent with a growing global trend in communities engaging in environmental stewardship (Bennett, 2018). Examples include community-based conservation and locally managed marine areas, which have emerged in sectors such as fisheries, forestry, and water management (Berkes, 2004). This shift recognises that community initiatives can address environmental concerns while also building social connections and, therefore, well-being.

Asset-Based Community Development (ABCD) has emerged as a transformative approach to community well-being initiatives, emphasising the inherent strengths and resources within communities. McKnight and Kretzmann (2005), pioneers of the ABCD approach, argue that sustainable community development must start with recognising the capacities, skills, and assets of local residents and their associations. Their work emphasises the importance of mapping community assets as a starting point for development initiatives. The methodology is driven by community members and focuses on harnessing the inherent strengths and assets of individuals, associations, and communities to promote social change (Mathie, 2003). ABCD represents a shift from traditional deficit-based approaches to community development. Instead of focusing on needs and shortcomings, ABCD emphasises the existing strengths and resources within a community. This approach is based on the principle that every community, regardless of its challenges, possesses a wealth of assets that can be mobilised to address local issues and enhance overall well-being. The effectiveness of ABCD relies on several key mechanisms. Harrison (2019) highlights the importance of building strong, trusting relationships within the community as a fundamental aspect of this approach. These relationships form the foundation for cooperation and collective action, which are essential for the success of community initiatives. Additionally, Harrison emphasises the role of reciprocity and accountability among community members in sustaining engagement and ensuring that initiatives are both community-driven and beneficial. While ABCD is fundamentally community-driven, the role of local authorities in supporting and facilitating this approach is crucial for its success.

Local authorities play a pivotal role in nurturing and sustaining ABCD initiatives through strategic support and facilitation. Forrester et al. (2018) identify several key strategies local authorities can employ. These include participating in appreciative inquiry, which is asking positive, strength-based questions to identify and build on community successes. Local authorities can also build social capital by developing networks of connections, which are critical for community resilience and well-being. Furthermore, sponsoring local economic initiatives can assist in establishing long-term economic prospects while improving general community well-being. ABCD emphasises empowerment. According to García (2020), empowering people in the community to identify their own assets and skills can help local authorities to establish long-term community initiatives. This empowerment boosts self-efficacy and gives community members a stronger sense of ownership and duty. ABCD’s success depends greatly on a supportive and trustworthy atmosphere. Harrison et al. (2019) observe that when community members feel supported and trusted, they are more likely to actively participate and contribute to the success of community efforts. ABCD offers a promising approach to community development by focusing on the positive aspects of communities rather than their deficiencies. This strengths-based approach can lead to more sustainable and impactful outcomes. However, it is important to recognise that the success of the ABCD relies heavily on the presence of a supportive environment and the active involvement of local authorities. Local authorities must adopt a facilitative role, providing necessary support and resources and allowing community members to lead (Forrester et al., 2018). ABCD represents a paradigm shift in community development, offering a promising framework for sustainable well-being outcomes when effectively supported by local authorities and embraced by community members.

Alice has recently graduated from the University of Birmingham with a first class degree in Policy, Politics and Economics. She was awarded the Jane Slowey bursary in her final year for her research on the Homes for Ukraine scheme. Alice is currently seeking further opportunities and can be contacted at [email protected]

References

Berkes, F. (2004) Rethinking community-based conservation. Conservation Biology, 18(3), 621–630. doi:10.1111/j.1523-1739.2004.

Forrester, G., Kurth, J., Vincent, P., & Oliver, M. (2018) Schools as community assets: an exploration of the merits of an Asset-Based Community Development (ABCD) approach. Educational Review, 72(4), 443–458. doi:10.1080/00131911.2018.1529655.

Fung, A. and Wright, E.O. (2003) Deepening democracy: Institutional innovations in empowered participatory governance. Verso.

García, I. (2020) “Chapter 4 Asset-Based Community Development (ABCD): core principles”. In Research Handbook on Community Development. Cheltenham, UK: Edward Elgar Publishing. doi:10.4337/9781788118477.00010.

Harrison, R., Blickem, C., Lamb, J., Kirk, S., and Vassilev, I. (2019) ‘Asset-Based Community Development: Narratives, Practice, and Conditions of Possibility—A Qualitative Study With Community Practitioners’ Sage Open, 9(1). doi:10.1177/2158244018823081.

Hastings, A., Bailey, N., Gannon, M., Besemer, K., and Bramley, G. (2015) ‘Coping with the Cuts? The Management of the Worst Financial Settlement in Living Memory’. Local Government Studies, 41(4), 601–621. doi:10.1080/03003930.2015.1036987.

Henderson, C., Evans-Lacko, S. and Thornicroft, G. (2013) ‘Mental Illness Stigma, Help Seeking, and Public Health Programs’. American Journal of Public Health, 103(5), 777-780. doi:10.2105/AJPH.2012.301056.

Imbroscio, D. (2013) ‘From Redistribution to Ownership: Toward an Alternative Urban Policy for America’s Cities’. Urban Affairs Review, 49(6), 787-820. doi:10.1177/1078087413495362.

Kawachi, I. and Berkman, L. (2000) ‘Social cohesion, social capital, and health’. Social epidemiology, 174(7), 290-319.

Knifton, L., Gervais, M., Newbigging, K., Mirza, N., Quinn, N., Wilson, N., and Hunkins-Hutchison, E. (2010) ‘Community conversation: addressing mental health stigma with ethnic minority communities’. Social psychiatry and psychiatric epidemiology, 45, 497-504.

Kretzmann, J. P. and McKnight, J. (2005) Discovering community power: A guide to mobilising local assets and your organisation’s capacity. Evanston, IL: Asset-Based Community Development Institute, School of Education and Social Policy, Northwestern University.

Local Government Association (2023) Working with housing association ‘Bolton at Home’ to reduce unemployment and deprivation – Bolton Council. Available at: https://www.local.gov.uk/case-studies/working-housing-association-bolton-home-reduce-unemployment-and-deprivation-bolton (Accessed: 20 July 2024).

Lowndes, V. and McCaughie, K. (2013) ‘Weathering the perfect storm? Austerity and institutional resilience in local government’. Policy and Politics, 41(4), 533-549.

Mind (2024) 5 ways to wellbeing. Available at: https://www.mind.org.uk/workplace/mental-health-at-work/five-ways-to-wellbeing/ (Accessed: 21 July 2024).

New Local (2024) Re-occupying Union Street: How we built back our neighbourhood. Available at: https://www.newlocal.org.uk/case-studies/re-occupying-union-street/ (Accessed 13 June 2024).

NHS Providers (2024) Co-production and engagement with communities. Available at: https://nhsproviders.org/media/698572/co-production-health-ineq-1e.pdf (Accessed: 25 July 2024).

Nudge (2024) Local love, local jobs, local spend, local change. Available at: https://www.nudge.community (Accessed 12 June 2024).

South, J. (2015) A guide to community-centred approaches for health and wellbeing. Project Report. Public Health England / NHS England.

Stirchley Baths (2024) https://stirchleybaths.org (Accessed: 22 July 2024).

Trup, N., Carrington, D. and Wyler, S (2019) Community hubs Understanding survival and success, Available at: https://www.powertochange.org.uk/wp-content/uploads/2019/07/Hubs-Report-FINAL-120719.pdf (Accessed: 24 July 2024).

Inflation and Local Authority Budgets

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Andrew Coulson

Our two main political parties are locked in a strange debate about the next budget, on 6 March. The elephant in the room is the underfunding of local government.

In the nearly 14 years of Conservative government, the core spending power of local authorities has been cut by 27% in real terms.[1] The County Councils Network has “warned that its members are under extreme pressure, and that the authorities they represent are set to overspend by almost £650m this year due to spiralling costs, particularly in children’s social care and home to school transport, which was contributing to a £4b funding deficit for those authorities over the next three years”. In addition an increase in the National Living Wage is expected to costs these councils £230m next year.[2] This has happened at a time when the ability of councils to raise their council taxes has been held down, for 2024-5 to below 5% for all but a tiny number of councils.[3]  One of its consequences has been the inability of the employers in local government and the NHS to negotiate pay settlements which reflect the rate of inflation, or anything near it.

My reading of the present position is that Gove on the one hand and Rachel Reeves on the other are playing chicken. Each are waiting for the other to move first. They both know that after the general election a new government will have to settle the long-standing pay disputes in the public sector, and that it is not possible, year after year, for the pay of staff employed by local government and the NHS to rise by less the rate of inflation. The consequences are visable: depressed morale, a haemorrhage of experienced staff, and dependence on immigration to employ new staff. Rachel hopes that the Conservatives will be forced to confront this before the election. Gove wants the Labour Party to commit to doing it, because as of now any settlement is unfunded.

My view is that the understanding of inflation both by the two main political parties and the Bank of England is naive, especially as it relates to government policy. The starting point should be that inflation affects the distribution of income. It is an intrinsically political process. Most large companies and the richest people have means through which they can compensate for any inflation. Those who do not have the power or muscle to do so pay the price. Thomas Piketty[4] showed that inflation was the main means by which the middle classes paid for much of the costs of two world wars.[5]  In those inflations, and in the last significant inflation in the UK, which followed the OPEC hikes in oil prices in the 1970s, the trade unions were strong enough to ensure that wages rose at around the rate of inflation. This is no longer the case.

Yet the recent inflation has given the Government unprecedented increases in tax, which means that, if they so choose, they can afford wage increases. Most of this extra income arises from not raising the ceilings on higher rates of tax. Jeremy Hunt would like to use it to lower rates of income tax. The IMF (no less!) has told him that it is not appropriate to do so at this time.[6] The main reason, not always clearly stated, is that there are many unfunded challenges, but of these the public sector pay disputes (and perhaps the need for additional spending on defence, where difficulties in retention and recruitment are also partly a matter of pay settlements not keeping up with inflation) are top of the list. 

Economists in the UK, the USA and other developed countries have had little to say in recent years about inflation. As if it is no longer a problem, which it probably isn’t if inflation stays at around 2%. But the present inflations, driven by wars, the climate crisis and the lockdowns, are another matter. Economic theory is little help. All the traditional theories have been shown to be false. It is not true that inflation and unemployment are opposites: we can have both together, so-called stagflation. Or that it can be controlled by limiting the supply of money, which is not possible when most of it is created by banks which lend far more than they hold in deposits. Or that it is either created by unexpected demands or by unexpected costs.

The British Government urgently needs to resolve the disputes about pay in the public sector, and to do so recognising that most local government employees are substantially worse off than they were before. The Labour spokesperson Angela Rayner has made the practical proposal of negotiating a three year settlement.[7]  It cannot come soon enough.

Andrew Coulson is a nationally-recognised expert on scrutiny in local government and is particularly interested in governance by committee.

[1] Local Government Association, https://www.local.gov.uk/about/campaigns/save-local-services/save-local-services-council-pressures-explained 2024

[2] https://www.countycouncilsnetwork.org.uk/councils-in-significantly-worse-financial-position-after-the-autumn-statement-with-seven-in-ten-now-unsure-if-they-can-balance-their-budget-next-year/

[3] A prescient academic law professor, writing as long ago as 1984, wrote “It seems to me that the provisions for rate-capping … are little removed from a proposal to replace elected councils by administrative units. For a very long time, local inhabitants have enjoyed the right to elect local representatives with the power to tax, and so to determine, within modest political limits, what level of services shall be provided in the locality. … I have no difficulty in saying of an Act to put a limit on the rates leviable by a local authority that it is politically unconstitutional”. John Griffiths, in the Preface to Half a Century of Municipal Decline 1935-1985, George Allen and Unwin, 1985, p.xii

[4] Thomas Piketty, Capital in the Twenty-First Century, Harvard University Press, 2014

[5] The point was also made by one of his critics, Joseph T Salano, “War and the Money Machine: Concealing the costs of War beneath the Veil of Inflation” in John V Denson (ed.) The Costs of War, Routledge, 2nd edn. 1999 

[6] David Milliken and William Schomberg,  https://www.reuters.com/world/uk/imf-cuts-uk-growth-outlook-2025-after-stronger-past-performance-2024-01-30/

[7] “Rayner floats three year pay deal”. Municipal Journal, 14 Feb. 2024

The value and necessity of our green spaces and natural assets

/ jlowther2015 / Leave a comment

Rebekah Roebuck

Witton Lakes, Stockland Green, Birmingham: Photo by Tom Roebuck

Open spaces, whether green spaces (e.g. parks or forests), blue spaces (e.g. canals or rivers) or grey spaces (e.g. urban squares) have long been understood to be of great importance and value to society. Be it the creation of the Porticus Pompeiana in Ancient Rome or the wider opening of the Royal Parks to the public in the UK throughout the 1800s, the connection between open spaces and society’s wellbeing is complex but enduring. However, with the increase in financial precarity across local government, their status and quality may be at risk. This blog emphasizes the value of citizen relationships with open spaces using flash ethnographic research from four cities across the world, including the role of community organisations before considering potential impacts of local government finances for green spaces in Birmingham.

Norval Foundation, Cape Town, South Africa: Photo by Lauren Richards

Open spaces entail a wide range of places, including recreational facilities, public parks, heritage sites, beaches, and public squares. On an individual level, citizens around the world connect with local open spaces for a variety of often highly contextual and personal reasons. Open spaces can be places where people connect with heritage, with art and culture, developing a sense of self and connecting with the environment they live in. They are spaces we might use alone but can also act as hubs for community building and socializing.  We may choose to visit a park for a few hours, stay at a beach all day, or simply sit outside in public squares during lunch breaks.

Central Business District, Nairobi, Kenya: Photo by Saina Kiprotich

Some of our open spaces are treasured and achieve status such as becoming a UNESCO world heritage site. One such example is in Morocco, where Chellah, an ancient archaeological site and fortified necropolis, is listed and protected by the Moroccan authorities, and well maintained so visitors can feel safe and secure while enjoying the natural beauty and historical significance of the area. The standard, cleanliness and perceived safety of an open space impacts the desire of local residents to use it. In many places, including Birmingham, Nairobi and Cape Town, the standard of open spaces varies significantly, with more affluent neighbourhoods often having better maintained spaces

but some are simply ‘left behind’, neglected, or subject to fly tipping or dumping, causing visual pollution, and spoiling open spaces.

Chellah, Rabat, Morocco: Photo by Ilias Defaa

This lack of equality around green space access is well recognised by Birmingham City Council, who have a 25-year City of Nature Plan, with an ambition to be recognised as a city of nature, with the Birmingham Future Parks Accelerator Project developing an environmental justice map of the city by ward with ‘access to green space’ comprising one of the factors that generates the score, the first local authority in the UK to develop a tool to measure environmental justice.

The relationship we have today with our open spaces is gaining focus both here in the UK and globally. Increased attention to climate change, the importance of biodiversity and the value of open spaces as assets which can help with climate mitigation and adaptation is growing, alongside the intrinsic benefits to local people and communities.

However, despite this growing recognition, and plans such as the BCC City of Nature Plan and the West Midlands Combined Authority (WMCA)’s five year Natural Environment Plan, funding for parks in the UK has been cut significantly. The State of UK Public Parks 2021 report published by the Association for Public Service Excellence (APSE) found that the UK has lost a total of £690 million funding for parks between 2011-2021, providing ‘woefully inadequate’ funding for local authorities.

Community groups, such as in Birmingham, often provide support voluntarily alongside accessing grants not available directly to local authorities to improve and develop the space for use. Birmingham Open Spaces Forum coordinate and support the 130+ ‘Friends of’ and other community groups across Birmingham that caretake and protect not only those spaces that seem traditional to open spaces; parks, fields and gardens, but also litter pick in the streets, and maintain other smaller patches of ‘green’, which some may overlook, but are of equal importance. Cotteridge Park in the south of the city provides a gold star, ‘Green Flag’ awarded example of the success possible with volunteers.

‘The Shed’ at Cotteridge Park, Birmingham: Photo by Rebekah Roebuck

The value of open spaces is not always easy to quantify. However, under the concept of natural capital, there is an increasing drive to define a financial value on the services provided. Birmingham’s 600 blue and green spaces (over 4,700 hectares (47 Km2), not to mention the famed ‘more miles of canals than Venice’), is estimated by Birmingham Future Parks Accelerator to be worth around £11 billion, with £4 billion linked directly to the wellbeing of its residents.

In the light of Birmingham City Council’s proposed service cuts, including city operations which includes responsibilities for parks, the role that community groups play in the protection, maintenance and guardianship of our green spaces feels even more critical. BOSF are backing the ‘Save Birmingham’ Campaign, formed in response to concern about the prospect of a ‘fire sale’ of vital spaces. They are asking local residents to nominate spaces and other facilities as an “asset of community value”, to demonstrate the public support for these and with a view to potentially developing further co-operative solutions for spaces in the future.

Be it simply the reduction in servicing and maintaining our parks, to the more serious prospect of the selling off or repurposing of open space assets, it seems likely that despite the recognition of the growing necessity to protect these open spaces, they may be at risk. To achieve environmental justice and equality of access to open spaces in Birmingham, how parks are funded, maintained, and improved must remain a focus for local government.

Rebekah Roebuck is undertaking a PhD on the governance of energy decarbonisation in the Department of Public Administration and Policy at the University of Birmingham. She is also interested in environmental justice, disability rights and community engagement. She can be contacted at [email protected]

https://www.linkedin.com/in/rebekah-roebuck/

This blog derives from a longer blog on Open Spaces and Mobility published for the University of Birmingham developed via a EUniWell project focused on international collaboration, written by the author alongside Ilias Defaa, Lauren Richards, Nana Amponsah and Saina Kiprotich.