Stripping back policy work could save Government £1.5bn a year

£1.5bn a year could be saved by central government departments by stripping back policy work by 20 per cent, town hall leaders have said.

In its response to the Department for Communities and Local Government’s (DCLG) statutory duties consultation, the Local Government Association (LGA) concludes it is right that statutory duties apply to the provision of residents’ core needs and ensure the protection of vulnerable people.

However, it is calling for the elimination of statutory guidance notes, which describe exactly how local authorities should go about fulfilling their duties. It is also seeking the removal of out-of-date duties and elimination of ministerial consent for minor activities.

The LGA believes that achieving this aim would significantly reduce the administrative burden on the central Government departments which do business most often with local authorities.

Around 50 duties have been identified that are unnecessary, inappropriate and costly. These could be removed immediately, and in its consultation response the LGA also calls for an immediate review of many more duties.

Among the issues highlighted are that the data reporting demands of central government departments which oblige the average council to fill in and submit an estimated 12.6 million individual pieces of information each, at an estimated cost of around £1.8m a year and the requirement to publish planning notices in local papers, at a cost to councils of around £40m per year.

Also, gold plated regulations which see poorly drafted legislation accompanied by confusing and dictatorial guidance notes. An estimated 80 per cent of CLG sponsored duties are accompanied by further instructions, and LGA would like to see all statutory guidance revoked.

Baroness Margaret Eaton, Chairman of LGA, said: "In 2010 town halls delivered more than £1.6bn of savings through measures like joining forces with other councils to get cheaper terms from suppliers and merging back offices."

"So far, more than 200 local authorities are in the process of entering shared services arrangements with neighbouring councils to bring down management costs."

Further information:
Local Government Association