Sector self regulation and improvement

1. Sector self regulation and improvement 5 November 2010 Insert website

2. How it used to be ….. the new local performance framework: delivering better outcomes for local people

3. Dismantling the new performance framework Coalition Government has • Abolished PSAs • Announced LAAs will not be renewed • Abolished the Place Survey and will replace NIS with single list of data requirements on councils • Abolished the Comprehensive Area Assessment – including the area and organisational assessment – and announced the abolition of the annual assessment of adult services • Announced its intention to abolish the Audit Commission and Government Offices for the Regions • Announced a review of the inspection burden on councils

4. Principles of a new approach • Councils responsible for their own performance • Stronger accountability through greater transparency drives further improvement • The role of the LG group is to support councils e.g. providing tools • Further reductions in external inspection and assessment can be made • In a sector owned model councils have collective responsibility for performance in the sector

5. External Activity Sector Support Local accountability Local priorities and outcomes Peer support Peer challenge Annual Audit Elections Inspection? Councils Transparent data Benchmarking Early warning system Government intervention

6. Headline responses • General support for overall approach - but want more details • Support for the key elements of the approach – transparent performance information and benchmarking, self evaluation and peer challenge – but needs to be streamlined; build on what already exists; councils should be free to use the tools as they see fit; and more emphasis to scrutiny; • Support for the proposal to manage risk through early warning system - but needs careful thought; should not replicate external assessment; • Approach should not focus on councils alone; • Capacity of the sector to deliver in the current financial climate e.g. to “offer up” sufficient high quality peers; • Proposals alone will not significantly strengthen local accountability - more needs to be done to support meaningful engagement at local level.

7. Next steps: further lobbying • Departmental Business Plans to contain “key indicators against which Govt will publish data to show the impact of public services and departmental activities” • Further reduction in inspection – including an end to the annual scored assessment for children services • Reduction in data and reporting burdens – Govt want to involve us in reducing current burdens and developing a single list • Streamlined statutory audit to remain - focussing on financial resilience, VfM and data quality • Intervention or inspection only after the sector has had the opportunity to improve and when triggered by risk protocols agreed with the sector

8. Next steps: developing the tools • A new local assessment tool – developing a shared assessment of current performance with local people and communities • A radically refreshed peer challenge offer • A means to compare performance and productivity measures • A means of managing the risk of underperformance through early warning signals

9. Break !

10. Developing the remaining tools • A new local assessment tool – developing a shared assessment of current performance with local people and communities • A radically refreshed peer challenge offer • A means of managing the risk of underperformance through early warning signals

11. 1. A new local assessment tool • A new approach to support local accountability - how do communities and citizens think the council is performing? • Interactive web-based assessment tool – similar to budget calculator • Input from – citizens, community groups, partners • Input on their terms – on matters important to them and not constrained by set parameters

12. 2. Peer challenge – overall approach • To support further improvement • Core component – free, once every three years • Optional bespoke element – voluntary, paid for • Proportionate • Based on high level challenges agreed with council – not a prescriptive benchmark • Peer teams agreed with the council • Developing the peer pool • New opportunities to involve citizen and service users

13. 3. Managing the risk of underperformance – early warnings • “Early warning system” - to detect signs of potential major financial, governance or performance failure • Not a quasi inspectorate but a way of focussing support to prevent failure • Building on what we do already

14. 3. Early warning – possible signals? Some possible indicators that when present in any number might prompt further discussions • Significant changes in political/managerial control • Poor member/officer relations • Nature of local politics – long term domination or tight political balance • Poor financial health – particularly small districts? • Declining performance in key service areas • Insular – unwilling to learn from the sector/others • Scrutiny that focuses just on past performance rather than contributing to future challenges

15. 3. Early warning – some sources of intelligence As inspection and assessment is cut back new sources of intelligence are required e.g. • Local assessments/annual reports • Published performance data • Peer review/Peer challenge • Regional Associates, council groupings, professional networks • Local media reporting • Auditors, remaining inspections LGA Imp Board and political group Imp Boards

16. 3. Early Warning - some key design issues • Focus • Informal or systematic? • How transparent? • Local, Regional and National perspectives • Drawing intelligence from the Inspectorates?