Public institutions and governance

LGOF: CPA-lite or Daily Mail target practice?  

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Jason Lowther

In July, then Local Government Minister Jim McMahon announced a new Local Government Outcomes Framework (LGOF), which (he said) “forms an integral part of this Government’s reforms to ensure we have a sector which is fit, legal and decent”.  These reforms are already pretty extensive, including LG reorganisation, devolution, community engagement, member standards and funding arrangements.

The LGOF framework, the Minister hoped, “will help to put the right checks and balances in place to ensure value for the taxpayer and results for citizens to whom councils are ultimately responsible”.  Given the removal of most systematic monitoring of local performance and outcomes in England with the demise of the Audit Commission a decade ago, is this a new dawn for helpful local insights and intelligent central steering, or the raw material for a crude league table that obscures more than it illuminates?

History shows the difficulty of designing and using performance measures effectively.  Whilst the logic of measuring what matters to inform management (and political) decision making is clear, and there are many examples of successful applications, there are enough examples of failures and unintended negative consequences to encourage caution. 

The immediate precursor to LGOF was a set of measures developed by the ill-fated Office of Local Government (OFLOG).  These were immediately manipulated by the Times newspaper into a league table, labelling Nottingham as the worst council.  The fact that this took place during the pre-election period only made the impact more negative, leading to a stinging letter from the LGA to the then Secretary of State, Michael Gove.  OFLOG was in some ways set up to fail.  Sited inside the Ministry, its political independence was immediately open to challenge.  And reconciling providing local authorities with better data at the same time as acting as an accountability mechanism to central government was always going to be tricky. 

The health service experience of performance measures and targets presents mixed evidence.  It appears that four-hour A&E waiting times targets were associated with reduced mortality, but at the same time there were examples of departments admitting patients near to the time limit at the expense of others more in need of urgent care, a few examples of blatant misrepresentation of figures, and some bizarre holding of patients in ambulances and redefinition of corridors as wards.

Key lessons from these examples include the importance of having a clear focus for the LGOF and the adoption of a broad ‘exploratory’ approach to presenting the performance measures.   As the Institute for Government argued for OFLOG, a key contribution could be making data more consistently available, comparable and usable – and hence supporting evidence-based policy making through the deliberative use of robust evidence.

The LGOF data needs to be presented in ways that enable and encourage exploration and questioning, rather than simplistic league tables which ignore the inherent differences between different councils in terms of population, geography, deprivation, funding, etc.  It therefore needs exhibit what I call the three Cs: to be comparable across councils, contextualised to reflect local circumstances, and citizen-focussed (accessible to lay people).

There are many positive features of the new framework, including its attempt to look at missions and outcomes (rather than just council outputs).  Interested parties had until 12 September 2025 to respond to the Government’s consultation, so we now await the government’s response to that.  Councils can easily see how the proposed LGOF measures look for them using the excellent new LG Inform LGOF report. 

Dr Jason Lowther is Director of the Institute of Local Government Studies (INLOGOV) at the University of Birmingham.  This article was initially published in the Local Area Research and Intelligence Association (LARIA) newsletter. Email [email protected]

Openness of council finances is key for a functioning democracy

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Matty Edwards, Research For Action

Local authorities are under immense pressure to find savings whenever they can. After more than a decade of austerity, the collective deficit in the sector is expected to reach £9.3bn by next financial year. Local authority finances have also become increasingly speculative, as budgets are prepared on the basis of unpredictable grant allocations and single-year financial settlements, sometimes without audited accounts. Pressures to find new sources of income through commercial investments and private sector partnerships have also increased the complexity of council funding.

This creates a challenge: scrutiny of local government finance is more important than ever. Yet even with the best intentions, local authorities struggle to produce open and accessible financial information. 

In a research collaboration between Research for Action and the University of Sussex, we set out to explore how financial information — such as council budgets and accounts — could be made more accessible to the public. Our research found that even experienced researchers, accountants and councillors struggle to find and understand local authority financial information.

We spoke to 26 people from the local government sector over three months this spring to examine barriers to making local authority financial information accessible to councillors and the wider public. Interviewees included councillors from a range of authorities, council officers, academics, accountants, journalists and key sector bodies like CIPFA. 

Our key findings were a lack of standard reporting requirements, strained council capacity after years of austerity and a fragmented data landscape with no standard formats for publishing financial information. These barriers make it difficult to understand a single council’s finances and make comparisons across the sector, hindering effective scrutiny by councillors and journalists, and democratic participation by the public. 

Some interviewees argued that accessibility was less of a priority in the face of a mounting crisis in local authority finances, but in our view, openness is not a luxury. It is key to effective local democracy. 

How to improve open up council finances

Based on our findings, we set out a series of recommendations for greater transparency and openness. 

The government should introduce new data standards for local government to improve accessibility, potentially via a Local Government Finance Act. This should include making financial information machine readable where possible and using accessible file formats. An easy win in this area would be to create a single repository for all local government financial information.

Local audit reforms are also an important piece of the puzzle. The new Local Audit Office (LAO) should be made responsible for local government financial data, including making it publicly available with tools to enable comparison and oversight. A more ambitious idea for the new LAO could be to create a traffic light warning system for the financial health of local authorities based on indicators that are timely and easy to understand, taking inspiration from Japan. 

Council accounts were highlighted as a particularly technical and opaque part of local government finance. That’s why councils should be mandated to attach a narrative report to their annual accounts, as previously recommended by the Redmond Review.

We think that the Local Government Data Explorer, recently scrapped, should be replaced with a data visualisation that is genuinely accessible and interactive, perhaps taking inspiration from a dashboard created by academics in Ireland. There should also be funding for local open data platforms, because there have been isolated examples of successes, such as the Data Mill North. 

The other part of the problem is that councillors often don’t have the knowledge and skills to properly scrutinise the complicated world of local government finance. That’s why we’re calling for greater support and training for councillors to enable better financial scrutiny, as well as public resources to improve literacy around local government.

While the sector faces great upheaval in the next few years through local government reorganisation and English Devolution, these reforms also present an opportunity to improve transparency – whether that’s at unitary or combined authority level. 

We believe that greater openness will ultimately facilitate better public participation and healthier local democracies.

Matty Edwards is a freelance journalist based in Bristol who also works for Research For Action, a cooperative team of researchers that in recent years has investigated PFI, LOBO loans, the local audit crisis and scrutiny in local government.

The role of the Ombudsman within the Japanese Local Government System: The Example of Kawasaki City

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Professor Shunsuke Kimura

The ombudsman is an institution that serves as a voice for Parliament and the public, conducting administrative reviews through hearings and investigations of complaints and inquiries. Rooted in human rights protection, the ombudsman system monitors administrative agencies by directly addressing citizens’ claims.

This paper analyses the functions of the Japanese ombudsman system within the public policy framework, particularly considering Japan’s cultural characteristics. Despite its adoption by some local governments since 1990, the ombudsman institution has not gained widespread prominence across Japan. This raises questions regarding its effectiveness within the administrative dispute system and the reasons for its limited adoption. Research indicates that there are structural issues within Japan’s local administrative system that may hinder the mediation process.

The study employs original statistics sourced from interviews with ombudsmen from Kawasaki City, which was the first municipality to establish an ombudsman in 1990. The paper also highlights the presence of approximately 5,000 administrative advisors across Japan, which contrasts with the relatively small number of municipalities that have adopted the ombudsman system.

Municipal ombudsmen have contributed to addressing administrative grievances and improving local governance through reforms. The Japanese administrative dispute system comprises three subsystems: the administrative case litigation system, the administrative appeal system, and the grievance system, with the ombudsman system falling under the latter. (See Table1)

The ombudsman primarily addresses inadequate administrative actions, aiming to enhance administrative justice. Japan’s local government system consists of ordinary and special local governments, with prefectures and municipalities being the primary units.

The paper emphasizes that, unlike many countries, Japan does not have a national ombudsman system, only local government systems, which contributes to the unique characteristics of its public ombudsman framework. This framework includes legislative and executive types of ombudsmen, with the latter being more prominent in local governance.

This paper discusses the varying implementation of ombudsmen across municipalities, pointing out that their presence is particularly notable in designated cities. However, the diffusion of ombudsmen remains limited, with only 71 municipalities adopting the system.(See Table2)

This limitation can be attributed to cultural factors that prioritize group cohesion over individual expression, as well as historical beliefs regarding government infallibility.

The role of the ombudsman in Japan is further complicated by the lack of national oversight and the challenges in securing competent personnel. Additionally, existing administrative bodies with similar functions pose competition for the establishment of ombudsmen.

The study concludes that while the ombudsman system has not spread significantly, it plays a crucial role in addressing administrative issues and enhancing citizen participation. The future of the ombudsman system in Japan hinges on recognizing its value in promoting administrative justice and ensuring the protection of citizens’ rights. In summary, the Japanese ombudsman system, despite its limitations, has the potential to evolve as a vital mechanism for administrative accountability and citizen engagement, particularly in an era marked by increasing complexity in governance and citizen demands.

Professor Shunsuke Kimura, PhD, is Professor and Dean of Graduate School of Global Governance, Meiji University, Tokyo, Japan. PhD(law) at Hitotsubashi Univ. After retiring from Ministry of Internal-Affairs, he has been working as a professor. He has been a Visiting Scholar at Lille Univ. in 2023 and at the University of Birmingham (INLOGOV) in 2025.

Cyclopean ‘local’ government and the end of local democracy?

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Chris Game

As with another quite recent blog of mine, it’s important to start with the alert that most of its style, structure and content stem directly from its having been written in the first instance not for an academic readership, but as a column for probably this week’s Birmingham Post. There are a few additions and subtractions, plus, barring a dramatically uncharacteristic Lowtherian intervention, one guaranteeable difference: the title.

At the time of writing this intro I don’t know for certain what the Post editor’s choice of words and punctuation will be – except that it won’t comprise nine words, including three longish ones. Space and layout, you understand. It will, however – because regular authors do have at least some bargaining ‘say’ – open with that key word that many/most Post readers will barely recognise.

To summarise the whole thing: here in Britain we already have, and in England, following last December’s devolution White Paper, are about to develop still further, a scale of ‘local’ government that makes a complete mockery of the term ‘local’; and the present Government, with no noticeable public consultation, is embarked on increasing that non-local size still further – to truly Cyclopean dimensions.

And, as I sought to explain to the Post editor, by introducing this concept, rarely if ever used in modern political debate, both the Post and I will become – well, you never know – possibly a little bit famous. Here’s the reasoning.

First, ‘Cyclopean’, used in the context of local government.  Ancient Greek, pretty obviously, it originally described an architectural style in which the walls, towers and other fortifications of ancient cities like Mycenae (a 70-odd mile day trip SW of Athens) were constructed from massive limestone boulders – of the scale shown in the accompanying illustration – fitted extremely closely together without apparently having been substantially reshaped and without use of mortar or cement. 

So preternaturally impressive were these city constructions – the hilltop Mycenae was perhaps the most famous, but there were numerous others – that the myth developed that they must have been built by the Cyclopes, a race of superhuman giants in Greek mythology, and the only humans physically capable of creating such constructions. Hence ‘Cyclopean’ – to describe the assumed method and scale of a city’s governmental architecture, not the size of its residential population.

Somehow, though, towards the latter end of the 3,500 intervening years, the UK has developed, to an almost unique degree, its own interpretation of ‘Cyclopean local government’. Yes, there are loads of large buildings – Birmingham’s Council House and Central Library for starters, the Octagon, etc. – but there’s no Cyclopean mystery about what holds them together. Put crudely, it’s the concrete and steel, not some mystical manpower.

The UK’s, and particularly England’s, modern-day local government and its latest structural ‘reform’ have become almost entirely about scale. Instead of referring to the governance of, or provision of services for, a particular local community and its unique character, England’s ‘Cyclopean local government’ currently comprises just over 300 ‘local’ authorities, with populations averaging 180,000 – which is hardly our (or anyone’s) ‘everyday’ usage and understanding of that term ‘local’.

And yes, averaging. Which, of course, would make Birmingham’s 1.2 million population ‘super-Cyclopean’ – and the West Midlands Combined Authority’s 4 million ‘Mega-Cyclopean’. Or ‘hyper-Cyclopean’, which I personally slightly prefer, suggesting something beyond the bounds of reason, or control. We’ll return to that.

Some quick comparisons or contrasts: average size of German and Italian municipalities is around 7,500, Spain’s 5,700, and France, albeit as exceptional in its way as the UK, 1,900. Yes, slightly under one-hundredth the size of our average, and, by chance, roughly the same as our smallest, the Isles of Scilly, arguably our one ‘municipality’ that wouldn’t make a mockery of the term ‘autorité locale’.

The rest of the world, or first-time observers, find our scale figures as extraordinary as the Ancient Greeks found Mycenae. They are naturally curious as to how we do anything purporting to be genuinely ‘local’ government on such a manifestly non-local scale, and, above all, why.  Good questions, but not for a local newspaper column. Indeed, not for the likes of us mere citizens and voters either, because no one’s bothering to ask us.

The major redesign of England’s local government is currently in the hands of Angela Rayner – Deputy Prime Minister + (in any spare time) Secretary of State for Housing, Communities and Local Government.  An early action was to cancel – arguably “legally risky”, if not unconstitutionally (see Google– ‘Cancellation of 2025 English local elections’) – nine May 2025 county and unitary council elections, she/someone in the Government having decided that these bodies had had their day and there would be no room for them in her new, but still undefined, single-tier England.

Rightly describing the UK as the “most centralised” country in Europe (https://www.bbc.co.uk/news/articles/cn0xz4938z9o), Rayner’s apparent plan is to end central government’s micro-management by making ours, by a distance, the least localised – most Cyclopean – ‘local government’ certainly in Europe, if not the world (500,000 minimum), and, it would appear, without a great deal of consultation.

The ’plan’, in summary, represents the biggest and most transformative upheaval of English local government in my adult lifetime (sorry, you’ll have to work it out!), rushed/bullied through Parliament and local government itself with absolutely minimal consultation and consequential analysis. In short, modern-day Cyclopean local government.

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.

Picture credit: https://stock.adobe.com/uk/images/odysseus-und-seine-gefahrten-fluchten-vor-dem-zyklopen-polyphem/608942497

Rewiring Local Government for Citizen Engagement

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Jason Lowther

The Institute of Local Government Studies (INLOGOV) has published a new report, Rewiring Local Government for Citizen Engagement, which sets out a compelling case for reimagining the relationship between local authorities and the communities they serve. At a time of structural reform, fiscal constraint and lower public trust, the report argues that citizen engagement must become fully embedded local governance, rather than a peripheral activity.

The report identifies three interrelated conditions that are essential for effective engagement. First, local authorities must convene inclusive democratic spaces that enable deliberation, dialogue and collective decision-making. These spaces, whether in the form of citizens’ assemblies, participatory budgeting or neighbourhood forums, can help to rebuild trust and foster more responsive policymaking.

Second, councils must invest in building community capacity. This involves supporting citizens, particularly those from groups whose views are often neglected, to participate meaningfully in public life. It also requires sustained investment in community infrastructure, such as local venues, networks and organisations, which provide the foundations for civic engagement.  The report recognises that 15 years of austerity since 2010 has significantly reduced the availability of community meeting places such as libraries, neighbourhood offices, youth and community centres, and cultural and leisure services.

Third, the report highlights the importance of co-producing public services. By involving service users in the design and delivery of services, councils can ensure that provision is more closely aligned with the lived experiences and priorities of local people. Co-production also fosters innovation and strengthens the legitimacy of public institutions.

The report draws on a wide body of academic research and practical experience, both in the UK and internationally. It shows that democratic innovations are already taking root in many councils, despite the challenges posed by austerity and institutional inertia. Examples include digital engagement platforms, youth-led initiatives, and the devolution of powers to neighbourhood and parish levels.

However, the report also acknowledges the barriers that councils need to address. Organisational cultures, limited resources, the need to develop new skills in officers and members, and legitimate concerns among elected members about the implications of participatory approaches can all inhibit progress. The report calls for leadership, reform and investment to embed engagement in the everyday practices of governance.

We pay particular attention on the vital role of councillors, who are well placed to act as facilitators and mediators between communities and institutions. Supporting councillors to develop these roles is essential if engagement is to be sustained and meaningful. The report also emphasises the need to engage young people and to make appropriate use of digital tools.

In conclusion, Rewiring Local Government for Citizen Engagement offers a clear and evidence-based framework for strengthening local democracy. It argues that by embedding citizen engagement in governance structures and practices, councils can foster trust, improve outcomes and build more inclusive and resilient communities.

We will be discussing our findings with councils, central government and related think tanks and sector organisations over coming months.

The full report is available here:

Rewiring local government for citizen engagement_WEBDownload

The Treasury’s Long Shadow: Why Local Government Needs Its Own Barber

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Philip Swann

The extent to which the Blair government’s delivery unit became the focus of tension between No 10 and the Treasury is a key theme in Michelle Clement’s fascinating history[1] of the unit. It was a product of Tony Blair’s ambition to reform public services and was seen by Gordon Brown as a threat to his dominance of domestic policies generally and his planning mechanism, public service agreements, specifically.

There are striking similarities between the Treasury’s “not invented here” attempted dismissal of the Prime Minister’s Delivery Unit (PMDU) and the treatment of the government’s missions in the recent spending review.

Prime Minister Kier Starmer announced in February 2023 that five missions would form the “backbone” of Labour’s election manifesto. In October 2024 the Cabinet Office announced the establishment of a “mission board” for each mission chaired by the relevant secretary of state.  In December 2025 the government complicated things slightly when it published its Plan for Change: Milestones for Mission-led Government. It set out six targets which, “guided by our missions” would “set clear milestones[2]” to track the government’s progress.

The milestones were: raising living standards in every part of the UK; rebuilding Britain with 1.5m homes in England and fast-tracking planning decisions; ending hospital backlogs; putting police back on the beat; giving children the best start in life; and securing home-grown energy.

The missions were largely ignored in the spending review. Only one of the missions was referred to in Rachel Reeves’ speech and there were only 14 cursory references to missions in the core spending review document. This must mean that the missions were not central to the discussions about the government’s public expenditure priorities. This is so far removed from the way in which missions have been deployed elsewhere, such as by Camden Council. There missions were central to the council’s strategic planning and were used to engage partner organisations and the community in a concerted drive to address the challenges facing the borough.

It is clear from Clement’s book that the first head of the PMDU, Michael Barber, managed to keep the Treasury on board. His unpublished diaries are a key sources for the book, and Clement argues convincingly that, as one of the few senior figures who were respected by both Blair and Brown, he was instrumental in keeping the No 10-led show on the road.

In retrospect it is clear to me that local government suffered as a result of the differences of approach to delivery advanced by No 10 and Treasury. At the time the LGA, where I was director of strategy and communications, made a series of attempts to secure a more collaborative approach with government to the challenges then facing the country.

Local public service agreements (the name gives the game away) and their successors, local area agreements, became entangled in the Treasury’s target-laden bureaucracy and did not benefit from Barber’s more thoughtful “deliverology” which Clement refers to as an art rather than a science. Similarly the LGA’s “shared priorities, an earlier version of missions, got little traction beyond the Office of the Deputy Prime Minister and the then Audit Commission.

I do not recall any significant engagement with Barber, but I am not sure we would have made much progress. Clement refers to local delivery but not to local government and all the evidence suggests that Barber would have shared David Blunkett’s antipathy to the perceived lack of ambition of local education authorities (Barber worked with Blunkett in Blair’s first term).

It is not clear whether the absence of any significant reference to missions in the spending review was an oversight or a reflection of a bigger split between the Treasury and the Cabinet Office. If there is a serious divide we do not know where the Prime Minister stands. What we do know is that local government faces an urgent task in getting the Treasury to give more energy and political capital to the fundamental reform of local government finance. It is also fair to argue that, if taken seriously, the missions provide a good basis for a discussion why that should be a priority for central as well as local government.

One clear message from Clement’s book is that people matter. Local government needs to find its Barber.

[1] Clement, M. 2025 The Art of Delivery. Biteback Publishing

 

Phil Swann is studying for a PhD on central-local government relations at INLOGOV.