Keeping the window open: the 21st Century Public Servant and Covid-19

Image by @laurabrodrick

Prof. Catherine Needham

Local authorities had experience of managing short-term local crises, but the national and long-lasting crisis created by Covid-19 has been something new outside wartime. Local authorities had to manage the local implications of the lockdown and Covid-19 preparedness in their area whilst also moving all of their own non-essential workers to a home working model.

Our 21st Century Public Servant research (first published in 2014) looked at the changing roles, skills and values of people working in local public services. Over the previous six months we have partnered with North West Employers to understand how Covid-19 is changing working practices and skills, and how it links to the 21st C Public Servant findings. Given the constraints of doing fieldwork with local authorities themselves at a time of crisis, we gathered the learning through a series of conversations with the NWE team, published in our new report Keeping the Window Open.

The strain on local authority staff has been intense, as it has on the whole population. However some of the changes in organisational practices have been seen as positive, and have flagged opportunities for long-term reconfiguration. Some of our key findings include:

The importance of Storytellers: the most effective public servants during the crisis were seen by interviewees as those who were values-based and able to tell stories that drew on those values, setting out a path for the long term. They were the energiser and cheerleader – ‘we can get through this’ – despite not knowing the length or trajectory of the story.

The need for Entrepreneurs: the pandemic context has meant that staff have had to innovate, without always waiting for permission, and in some cases bypassing the usual sign-off procedures. The speed and extent of change has been unlike anything in local government before.

A new kind of Resource weaver: A key part of the Covid response has been using internal resources differently. Redeployment has been extensive, which has helped to break down silos within organisations. Many teams changed roles completely – for example leisure services and democratic services teams took on tasks like delivering PPE and setting up community hubs. The urgency and scale of the task made possible changes that otherwise would not have happened. As one of our interviewees put it, ‘People have been more willing to cross organisational lines, looking at partners and saying we can’t afford you to fail.’

Professional skills have been vital for those working in public health, environment health, planning and emergency response. However for many others, it is their more generic skills that have come to the forefront during the Covid-19 crisis. Through skills matching processes, there has been a new understanding of which individual skills are transferable. As one interviewee put it, ‘Lifeguards and fitness instructors have been redeployed to do community support because of their personal style and approach rather than their technical skills.’

Mass working from home has required high trust relationships with and between staff: ‘I think some managers have had their eyes opened about how home working can work. One local authority had no home working at all before this, they didn’t allow it – they had to go straight to 100 percent’. This creates questions about the future beyond Covid-19: ‘Are we prepared to let go and let people continue working from home or will we go back to the long hours culture? Can we focus on outputs and outcomes rather than hours worked?’

Something we didn’t address in the original 21st Century Public Servant research was endurance. It is still unclear how long this crisis will last. In the early phases at least there was hope that the lockdown could be short. Now it is clear that home working will continue for many people: ‘we won’t have everyone back at work ever again’. However, many have found home working to be much more intense, with few opportunities for down time, such as the chats in the lift with colleagues or the daydreaming on the train: ‘There isn’t much informal in my day at the moment. The intensity of it can be quite exhausting. How do we sustain the informal interactions like we had in the office?’

The long-term organisational legacy of Covid-19 is unclear, but the months of the crisis have made much clearer what public services are for and what the people working in them can achieve. Organisations and individuals need to think about how to keep open the window of change, and what are the new working cultures, roles and skills that can be sustained for the future.

This blog was originally published on the 21st Century Public Servant website: https://21stcenturypublicservant.wordpress.com/

Catherine Needham is Professor of Public Policy and Public Management. She is based at the Health Services Management Centre, developing research around social care and new approaches to public service workforce development.

The £3 Billion Pound Question

Jason Lowther

The Institute for Fiscal Studies’ latest review of English council finances documents why so many chief executives and treasurers have been having sleepless nights since “whatever it takes to tackle Covid” transformed into “as little as we can get away with giving you”.

On Wilkins Micawber’s “income” side, Covid has hit councils’ commercial activities, notably around retail rents, as well as fees for facilities such as leisure centres, and revenue from local taxes.   On the expenditure side, councils are seeing persistent cost increases.  As Micawber predicted: “result misery”.

In social care alone, expenditure on the care of older people will need to increase substantially and quickly.  Adult social care has faced a combination of pressures arising from demographic change and increased costs, rising need and demand, and short-term funding settlements. 

The IFS recognises the huge uncertainties involved in predicting financial and economic issues at present, addressing this by analysing a range of scenarios.

The bottom line across all council services is a £3bn+ shortfall in 2020–21, with the IFS concluding this may well be an optimistic estimate, and a middle scenario projecting a gap of over £3bn a year by 2024-25.  Not surprisingly they conclude that “without additional funding and/or flexibility over council tax rates, it is highly likely that councils will have insufficient revenues to keep pace with rising spending needs”.

What to do about this?  Aside from yet more austerity, the IFS identifies changing the rules on council tax rises (which would increase inequalities between rich and poor areas), increasing government grants, or giving councils additional tax powers such as new local taxes.

Austerity, the sustained and widespread cuts to government budgets which characterised Britain’s public policy from 2010, has already shrunk the capacity of the local state, increasing inequality between local governments and exacerbating territorial injustice[ii].

Greater local freedom on taxation is well overdue in the UK, where a larger proportion of local government spending is financed through grants from central government, and much less use is made of local and regional taxation than in almost all other European countries[iii]

Although the body of existing academic evidence about the impact of devolving fiscal powers is inconclusive[iv], comparative research on how municipal governments function in a number of major international cities demonstrates that British cities have very low levels of fiscal autonomy[v] and lower productivity than these cities.  There are also positive effects on economic outcomes when powers are held at the appropriate level and when local authorities are incentivised to create pro-growth planning regimes[vi] 

It’s also worth noticing again that much local government funding is still distributed through competitions which place considerable pressures upon local authorities and partners[vii], and result in wasted effort and ineffective use of resources.  And, whilst councils and other public bodies can share resources and pool funds to deliver joint outcomes more effectively and efficiently, there are still legal, cultural, governance and other barriers to this collaboration. 

In the short term, government should cull competitive funding and address the barriers to resource sharing.  They must plug the £3bn+ funding gaps over this and the next few years.  And in the medium term much more local freedom on taxation and autonomy are needed to give local government a sustainable future.

Jason Lowther, Director – Institute for Local Government Studies


[i] Ogden, K. et al, 2020, COVID-19 and English council funding: what is the medium-term outlook?, Institute for Fiscal Studies

[ii] Gray, M. and Barford, A., 2018. The depths of the cuts: the uneven geography of local government austerity. Cambridge Journal of Regions, Economy and Society11(3), pp.541-563.

[iii] Loughlin, J. and Martin, S., 2003. Options for Reforming Local Government Funding to Increase Local Streams of Funding: International Comparisons. Lyons Inquiry into Local Government Funding.

[iv] London Finance Commission, 2013. Raising the capital: The report of the London Finance Commission. London, the Commission.

[v] Slack, E., 2016. International Comparison of Global City Financing: A Report to the London Finance Commission. Institute on Municipal Finance and Governance Munk School of Global Affairs. University of Toronto.

[vi] Cheshire, P.C. and Hilber, C.A., 2008. Office space supply restrictions in Britain: the political economy of market revenge. The Economic Journal118(529), pp.F185-F221.

[vii] Loader, K., 2002. What price competition? The management of competitive funding in UK local government. International Journal of Public Sector Management.

The Transformative Politics of the European Green Deal

by Jon Bloomfield

COVID 19 has highlighted our fragile relationship to the planet. But it represents a minor challenge compared to the permanent havoc that runaway climate change threatens. Politicians and governments – some at least – are beginning to recognise the scale of the danger. In this article we assess the evolution of policy thinking on how to make climate transitions happen; the potential of the European Green Deal; and how progressives need to shape it and any UK counterpart to meet the challenges of modern society.

The European Green Deal initiative launched in December 2019 arose from a broad coalition spanning the political spectrum. Yet its central thrust of active government offers the prospect of reviving a battered social democracy. Green Deal politics failed to cut through after the 2008 financial crisis. Post COVID19 offers a second chance. There is a greater consensus around the need for active government and public investment to help the economy, underpinned by a recognition of the importance of equity to address issues of inequality and disadvantaged regions. This is moving politics onto traditional social democratic terrain, even when it is German Christian Democracy and French centrism that is taking it there. The politics of climate transition needs to be developed on a broad, cross-party basis but it offers major opportunities for social democracy, if it is able to embrace a pluralist and environmentalist approach suited to the challenges of the 21st century.

So what can a ‘social democracy re-born’ offer?  The starting point has to be a recognition that the climate crisis requires a re-making of everyday politics, on the Left as well as the Right. The 19th and 20th century model of high-carbon, fossil fuel intensive economies where the core task is for ‘man to conquer nature’ has run its course. To safeguard our common future a new low carbon model of sustainable development has to become the ‘common sense ‘of the age. That’s what the policy specialists and architects of the European and the US Green Deal have formulated. Politicians and parties across the spectrum are trying to catch up. The anticipated post-Covid, green recovery programmes in the run-up to COP 26 will show which political forces are best able to translate this thinking into everyday politics and to make low or zero-carbon initiatives the golden thread that runs through their policy proposals.

The elements of active government, collective goods, and social inclusion chime with the social democratic tradition yet it needs to overcome the contradictory baggage of utopianism on the one hand, and industrialism on the other. There are four areas in particular where a shift in social democratic thinking is needed.

Firstly, it needs to adopt a 21st Century modernity. The Green Industrial Revolution should no longer be the metaphor of choice. It speaks to a technocratic, top-down model of traditional Keynesianism.  This conjures images from the past while constricting the imagination of the present and future. The potential of a mix of social innovation and digital revolution to transform ‘soft’ infrastructure needs to be at the heart of green deal proposals.  Currently they play second fiddle to ‘hard’ infrastructure investment. Yet new tech opens new vistas.

Secondly, the potential widespread attractiveness of changes in lifestyle through sustainability transitions should be highlighted.

Thirdly, pluralism has to be at the heart of any effective, green deal movement. Successful sustainability transitions rely on a wide alliance of social actors with a shared vision.

Fourthly, the 21st century world is interdependent. We live in a world where the local and regional overlap and are intertwined with the national, Continental and global.   The interconnections are all the stronger when it comes to tackling a great societal challenge like climate change which is why centralised, top-down methods are not the answer. Rather than reheat an old, mission-driven approach, sustainability transitions need a challenge-led approach where national government specifies the broad direction but acknowledges that experimentation around a diversity of solutions must be nurtured with groups of stakeholders at local and city level.  The classic big national projects find this very difficult. They favour national ‘rollout’ with budgets held in Whitehall and local authorities administering central government decisions. The debacle on the UK’s COVID test and trace programme has served to highlight the limitations of this model of politics. Central to the green deal should be transition programmes which set clear sustainability targets but where budgets are devolved to enable localities to design initiatives appropriate to their needs in partnership with local stakeholders.

Our article indicates the openings here for a pluralist, ecological Left. The run-up to the next global climate conference –COP26- will be a vital period which will show whether parties and governments across the world are prepared to meet the climate change challenge.

Jon Bloomfield HeadDr. Jon Bloomfield. Honorary Research Fellow, Institute of Local Government Studies, University of Birmingham.

Policy Advisor on EU Climate Knowledge Innovation Community (KIC) programme; writes on cities, governance and migration as well as climate change.

Simon Clarke – first his speech goes, then him

Chris Game

Boris Johnson didn’t start the modern trend of hyper-rapid ministerial turnover, but he did ratchet it up.  His election last July produced a larger ministerial cull than in any other recent transition between ministers of the same party, the Ministry of Housing, Communities and Local Government being no exception.

So, were you paying attention?  Can you recall who was the minister specifically responsible for English local government on the first day of Boris Johnson’s Premiership, and how many there have been since?

For a department not traditionally one of the most sought-after steps on the ministerial promotion ladder, 18 months in Marsham Street evidently did Rishi Sunak no lasting career damage. For he it was who was junior Local Government Minister when Johnson arrived and was promoted by him to Chief Secretary to the Treasury.

The number of Sunak’s successors is less straightforward, as, following Simon Clarke’s recent resignation, he is replaced by Luke Hall, the man he himself at least formally succeeded in the role barely six months ago. This was interesting, as back in February it had apparently been necessary for an MHCLG “spokesperson” to dismiss as “nonsense” rumours that Hall was being “quietly moved aside” because Secretary of State Robert Jenrick “does not rate him”.

Interesting, but marginal, for this blog, although again featuring MHCLG in a key role, is about Clarke’s resignation and its possible policy ramifications. In the BBC’s rather odd choice of library photo he himself looked positively delighted.  But his letter to the PM cited “purely personal reasons”, so, if distressing circumstances are involved, one must obviously sympathise.

I don’t know Clarke, but from a distance he seemed one of the more committed, interested and listening Local Government ministers (as opposed to Secretaries of State) we’ve had recently.  And, given the limited options, I felt reasonably positive about his taking lead responsibility for the local government part of the Government’s anticipatedly radical ‘Devolution and Recovery’ White Paper, long expected sometime this month, but now at the Conservatives’ virtual annual conference in early October – possibly, or possibly not.

I wasn’t expecting to like what the White Paper had/has in store for the future gargantuan structure of what we could once meaningfully call local government. Clarke, though, almost from the outset, enthused – talking of producing a “genuinely seminal document … helping the process of unlocking devolution everywhere and empowering communities on a scale never seen before.”

The ”everywhere” and “communities” seemed perhaps that bit more meaningful, given Clarke’s having apparently made a point of meeting personally with the National Association of Local Councils, acknowledging the role parish and town councils had played in responding to Covid, and talking of strengthening that role in the future – along, albeit, with the extensive unitarisation.

His departure does, therefore, leave several question marks.  First, the resignation’s sheer hint-less suddenness.  Second, Clarke’s personal – and very recently well publicised – centrality to both the content and presentation of the White Paper.  And third, almost inevitably, the ‘Was he pushed, or at least nudged?’ conspiracy theory – and ‘The Mystery of the Disappearing Speech”.

The Local Government Chronicle (LGC) recalled Clarke’s ‘ground-breaking’ July speech to a Northern Powerhouse audience, promising “a roadmap for establishing a series of new mayors within the next ten years – representing the greatest decentralisation of power in our modern history.”

The speech duly appeared on the Ministry of Housing, Communities and Local Government website … then suddenly disappeared.  A manifestly crass piece of business, whatever the motive, and, of course, guaranteeing immensely greater interest and speculation than it initially attracted.

Happily, therefore, LGC was able to satisfy this ramped-up curiosity by publishing the full speech on its website (see preceding link).  Which means, if any pushing from No.10 were involved in Clarke’s resignation, we can at least speculate about possible prompts.

“A new deal for the North”?  A £5 billion ‘New Deal’, rebuilding public infrastructure, creating thousands of new jobs, helping our regions “build back and bounce forward” – no, that rallying vagueness is almost straight Boris.

“New mayoral devolution”?  “Responsible and effective mayors representing 100% of the north of England.”  Again, Johnson playbook stuff.  He proved Londoners would elect a Conservative mayor, despite most boroughs being Labour-run, as have Andy Street in the West Midlands and Ben Houchen in Tees Valley.

Remember in December how voters in those North and Midlands ‘red wall’ – now ‘blue wall’ – constituencies elected Conservative MPs for the first time?  They should have a similar chance next April to elect a Conservative metro mayor in the new but traditionally very Labour West Yorkshire Combined Authority.

This is the Government’s apparent strategy: abolishing – sorry, combining – large numbers of already big city, borough and district councils into, by any traditional and international standards, huge unitary ‘Combined Authorities’ headed by directly elected and hopefully Conservative mayors, thereby simultaneously saving money and providing more ‘streamlined’, if hardly local, government.

All of which leaves at least as many questions as it answers.  Why the apparent rush, mid-Covid?  This seems best explained by the Winston Churchill/Rahm Emanuel injunction to “Never let a good crisis go to waste”.  Councils have been hit massively by Covid, with County Finance Directors especially warning throughout the summer of budget shortfalls and the looming necessity to issue Section 114 (Bankruptcy) Notices.

Housing, Communities and Local Government Secretary, Robert Jenrick, made it clear from the start that he saw no “long-term future” for two-tier local government and especially for all those pesky ‘lower tier’ Labour councils. Unitary councils with directly elected mayors would be “strongly preferred” by the Government in considering devolution deals – the major issue for debate being the preferred and maximum permitted size of said unitaries.

Minimum size seems likely to be 300,000.  The arguments will be over the maximum: the District Councils Network’s preferred 500,000; the 1 million+ that whole-county unitaries could involve; or something in between?  Clarke’s position seemed flexible, but not that flexible: definitely closer to the former than the latter.

These things are already under vigorous discussion, but, if elections to new authorities are to be held as early as 2022 or even 2023, the legislation needs to be in place by summer 2021. Without even mentioning the Br…. word, and Covid clearly not going away any time soon, could the departure of the key minister signal at least a slowing-down of the timetable?  Which would also postpone the point at which, along with all those Labour district councillors who would lose their seats, there would be plenty of disgruntled Conservatives.

On the other hand, and returning to the ‘Missing Speech Conspiracy’, could it be that Clarke was going just a touch too far for ultra-centralisers Johnson/Cummings and had started seriously to believe in his “greatest decentralisation of power in our modern history”?

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Chris Game is an INLOGOV Associate, and Visiting Professor at Kwansei Gakuin University, Osaka, Japan.  He is joint-author (with Professor David Wilson) of the successive editions of Local Government in the United Kingdom, and a regular columnist for The Birmingham Post.

Control freakery: Understanding who really gets to take control

Steve Rolfe

When Michael Gove reiterated the Brexiteers’ mantra of ‘taking back control’ at the recent Conservative Party Conference there was a strong sense of déjà vu about the whole performance. And not just because we’ve all heard the ‘taking back control’ message over and over again in the last 18 months. The repeated rhetoric of control also has strong echoes of an earlier Conservative policy idea – the notion of a ‘Control Shift’ at the heart of Localism and the Big Society. And the parallels go further. Just as campaigners have questioned what it might mean to ‘take back control’ after Brexit and who ends up in control, so my Local Government Studies paper, ‘Divergence in Community Participation Policy: Analysing Localism and Community Empowerment Using a Theory of Change Approach’ questions the policies which ostensibly aim to give power and control to communities.

Back in the early days of the Coalition government (remember those innocent pre-EU-referendum days?), the ideas of the ‘Big Society’ and shifting control to communities through Localism were big news, even if nobody could really work out what David Cameron meant by the Big Society. A whole raft of ‘new community rights’ were created, giving communities opportunities to challenge and take over public services, buy local assets, create their own Neighbourhood Plans and even develop local housing. Alongside this, the Localism Act aimed to ‘strengthen accountability’ of public sector organisations through directly elected mayors and Police and Crime Commissioners, plus referenda on ‘excessive’ council tax increases. At the same time, the Scottish Government were using similar language to set out their Community Empowerment agenda, giving communities rights to participate in service improvement and extending rights relating to control and ownership of land and assets. Both these policy frameworks are still in place, shaping community participation across England and Scotland, albeit that anything non-Brexit gets very little media attention these days.

On the surface, Localism and Community Empowerment seem to share many common features. Both see community voices as an important tool to improve public services, and community action as a means to fill some of the gaps between such services. Moreover, the language of ‘devolving power to communities’ sounds very similar on both sides of the border. However, as I try to argue in my paper, a more detailed look at the assumptions underlying Localism and Community Empowerment suggest that the UK and Scottish Governments have quite different ideas about how communities should participate and how they should relate to public sector agencies.

Crucially, the Scottish Government’s agenda emphasises a positive-sum conception of empowerment, where communities and public sector agencies each gain power by working together collaboratively. By contrast, most of the elements within Localism operate on a zero-sum basis, focusing on taking power away from the local state to give it to communities. Clearly there are risks in both approaches. In the Scottish partnership approach local authorities may simply hang on to power and refuse to collaborate – the evidence from decades of community work in Scotland provides many examples of intransigent bureaucrats, although also many tales of productive cooperation. In England, analysis of the policy detail suggests there are more complex and subtle risks involved. Hidden beneath the rhetoric of community rights are mechanisms which turn communities into ‘market-makers’, forcing local authorities to put services out to tender and challenging limits on house-building. Hence control is not so much shifted to communities, but rather handed to the free market and private businesses.

Interestingly, however, the more recent evidence about the use of Localism’s ‘new community rights’ suggests that communities are savvier than David Cameron perhaps expected. The Community Right to Challenge (the most blatantly market-focused element) has been hardly used in the six years since it was instituted. And whilst Neighbourhood Planning has proved very popular across England, most communities are attempting to use it to exert some control over the local housing market, rather than letting it rip.

So perhaps those fans of Brexit who continue to trumpet the idea of ‘taking back control’ may need to reflect a little on who is actually gaining control as we leave the EU. The evidence from community participation policy suggests not just that the rhetoric may be concealing the intended winners in the process of shifting control, but also that such processes are often unpredictable as multiple actors attempt to impose their own notions of control.

 

Steve%20Rolfe%20pic.jpgSteve Rolfe is a Research Fellow at the University of Stirling. His research interests include community participation and empowerment, social enterprise and housing. Before entering academia, he worked in local government for 15 years in a range of community development and policy roles.

Business models in local government?

Lasse Oulasvirta & Ari-Veikko Anttiroiko

 

Business models in local government?

Since the 1960s a range of business management models have been introduced in the public sector, including accrual accounting, management information systems, activity-based cost management, human resource management, customer relationship management and the like, which in most cases are in line with the tenets of New Public Management (NPM). One of the newcomers in this list is comprehensive risk management, known as Enterprise Risk Management (ERM) in the private sector. This normative risk management model, of which the most well-known version is COSO ERM, developed by the privately run Committee of Sponsoring Organizations of the Treadway Commission (COSO), has been promoted widely to all organisations, local governments included. Using survey data, our article in Local Government Studies describes and explains the diffusion and adoption of comprehensive ERM in local government in Finland.

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(Source: Kuntajohtajan johtajasopimus (”Director contracts for municipal chief executive officers”), a publication of the Finnish Association of Local and Regional Authorities, 2016, p. 20)

What explains local governments’ reluctance to buy the idea of comprehensive risk management? 

Our survey results support the argument that if comprehensive risk management is not obligatory, it is not widely used in local government. Our statistical analysis reveals that financial constraints explain to some extent the existence of comprehensive management in municipalities, while structural factors such as the size of municipalities do not, even though risk management is slightly more advanced in larger cities than in smaller local governments.

This compels us to ask whether the slow adoption is because of the special nature of RM as a managerial innovation. Such considerations direct our attention to the kind of intuitive cost-benefit assessment public managers are likely to go through when evaluating the needs and preconditions for the introduction of a comprehensive risk management model. Our assumption is that as a managerial innovation ERM lacks immediate benefit when assessed against the efforts and costs of its introduction and maintenance. It seems that the risk environment and institutional characteristics of public sector entities, including persisting silo mentality, do not provide a particularly strong incentive neither for politicians nor public managers to pursue voluntarily the adoption of such a model.

A need for tailored solutions

The question is not only about the nature of comprehensive RM as such (and the COSO ERM model in particular). We claim that part of the slow adoption is due to the insensitivity of the developers of such models and consequently also their models and tools to the needs and realities of public sector organisations. Thus, if business management models are not sufficiently tailored to the factual needs of local governments, their voluntary adoption is likely to be meagre.

This observation relates to the interplay between developers, consultants and local authorities, and points to private sector parties in particular, who should do their homework before rushing their potential clients in the local government.

Local choice matters

Lastly, our research implies that providing a condition for proper local choice may produce system level benefits, for local politicians, public managers and the front-line staff are in the best position to assess the suitability and benefit of each business model. In the case of comprehensive RM, for example, representatives of local government may see that this particular models is not cost-effective or may even appear to be insignificant in terms of its added value. This hints that new business models and management tools should not be too lightly imposed by the legislature on local governments – spontaneous evolution is as a rule better for creating cost-effective and resilient solutions. We may conclude that local government organisations, when given a general competence to decide on the conduct of local affair, are generally more rational and selective in adopting business models than generally assumed.

 

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Lasse Oulasvirta is Professor of Financial Administration and Public Sector Accounting in the University of Tampere, School of management. His research interests include public sector financial management, budgeting, accounting and auditing. He holds PhD (Administrative Sciences) and M.A. (Business Economics) degrees.

 

 

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Ari-Veikko Anttiroiko is an Adjunct Professor based in the School of Management, University of Tampere, Finland. He holds a PhD (Administrative Sciences) and MPhil and Licentiate (Philosophy) degrees. His main research areas include local governance, local economic development, smart cities, creative cities and public sector innovations.