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PARTICIPATORY BUDGETING

PARTICIPATORY BUDGETING. INTRODUCTION AND OVERVIEW Alan Budge: PB Unit. . WHAT IS PARTICIPATORY BUDGETING? .

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PARTICIPATORY BUDGETING

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  1. PARTICIPATORY BUDGETING INTRODUCTION AND OVERVIEW Alan Budge: PB Unit.

  2. WHAT IS PARTICIPATORY BUDGETING? • ‘Participatory Budgeting (PB) engages people in taking decisions on the spending priorities for a defined public budget in their local area. This means engaging residents and community groups to discuss spending priorities, make spending proposals, and vote on them, as well as giving local people a role in the scrutiny and monitoring of the process’ DCLG draft national PB strategy

  3. OR • ‘Local people decide how to allocate part of a public budget’ Participatory Budgeting Unit Values Principles and Standards draft consultation • ‘If it feels like we have decided ---- it’s PB. If it feels like someone else has decided, it isn’t.’ Brazilian resident involved in PB

  4. HEALTH WARNING! • Only a small percentage of any public budget will be allocated using PB • The PB process is formally mandated and ‘signed off’ by the elected legislature

  5. ORIGINS OF PARTICIPATORY BUDGETING • Began in Porto Alegre, Brazil in 1980s – city of 1.5m people • End of military dictatorship and election of Workers’ Party • Started small – 2/3% of investment budget but built to up to 18% • Neighbourhood to region to city-wide assembly

  6. DEVELOPMENT OF PB • Spread to 140 cities in Brazil • Now in 300+ cities worldwide, including Latin America, Canada, USA and 25 in Europe • Identified as good practise by international institutions, including World Bank, UNESCO, OECD, UN Habitat prize, and DFID • 30+ authorities in UK now developing pilots • Interest from 100+ local authorities in all • Strong support from government

  7. Main features of ‘classic’ PB model • % of mainstream budget devolved for PB allocation • Citizens meetings/votes on priorities, services and budgets • Neighbourhood and thematic structures which link citywide • Annual cycle and investment plan • Budget Matrix and Budget Council

  8. The PB investment cycle Local groups propose projects and decide priorities Investment into Communities Technical analysis Budget tables Departmental budgets Budget council report Revenue Budget Governing body

  9. The Budget Matrix

  10. Statistics eh?

  11. Statistics eh?

  12. Development of PB process • In Porto Alegre, a 64 page ‘Budget Matrix’ booklet is produced annually, which enjoys widespread circulation • The desire for this level of information developed ‘from the bottom up’ over a 25 year period • You have to start somewhere

  13. PB PILOT ACTIVITY IN THE UK - 1 • A grants pot /initiative funding- community chest, NRF funds etc • Bidders for the money present proposals to residents, who vote on which to support (eg Sunderland, Bradford, Newcastle) • No annual cycle or link to mainstream • But very effective at engaging/enthusing local people

  14. PB PILOT ACTIVITY IN THE UK -- 2 • Small scale mainstream allocation - where a specific amount of devolved money – e.g.for environment, highways, community safety etc issues - is allocated by local citizens in a designated neighbourhood • Presentation by local authority or other agency • Examples: Salford and Birmingham

  15. Potential Benefits of PB • Engages more people and different people • Better targeted and cost-effective services • Consultation/engagement/involvement are inevitable ‘by products’ of a PB process • Strong social cohesion benefits • Local ownership of projects/budgets/decisions

  16. More potential benefits of PB • More mature debate about priorities – can reshape relationship between elected members, officer, and residents • Potential for higher tax-raising • Develops budget literacy • Greater transparency re public finances

  17. In order to make informed choices re eg 5% of budget to be allocated by PB, residents need to know how the other 95% is spent 95% 5%

  18. The participatory budget of Icapui, Brazil. The left column reads, “where the money comes from.” The one on the right reads, “what the money is spent for.” Below it says, “When the administration is transparent, everything works smoothly

  19. PB - issues to consider • How does PB fit with existing democratic structures? • Is/should PB be representative? • Is the expense justified? • Will PB raise unrealistic/unmanageable expectations?

  20. ‘Participatory Budgeting ---- is a tool which gives people a real and direct say about how funds are allocated, and helps them to take more ownership of their neighbourhood, to feel able to say this is my street, my estate and I’m proud of it.’ Hazel Blears

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