Horizon Scan

1. Horizon Scan Summary of topical policy Issues for the Sustainable Development Partnership Board 21 December 2010

2. Purpose of this briefing • Provide a summary of recent Government policy announcements as they relate to the work of the Sustainable Development Partnership Board; • Highlight implications and opportunities for Lewisham; • Stimulate discussion about the way ahead

3. Main policy themes • Deficit reduction, public spending cuts and rebalancing the economy; • Radical programme of public sector reform, built upon redefining the social contract; • Community empowerment and placing more decision making in the hands of citizens; • Deregulation and cutting back Whitehall bureaucracy; • A new public sector accountability regime built around greater transparency

4. Legislative programme • The Queen’s Speech • Decentralisation & Localism Bill • abolish Regional Spatial Strategies; • abolish the infrastructure planning commission; • give communities the right to bid to take over local state run services threatened with closure; • give council a “general power of competence”; • greater financial autonomy to local government and community groups; • create local enterprise partnerships to promote local economic development; • give residents the power to instigate local referendums on any local issue and the power to veto excessive council tax rises • Energy Security & Green Economy Bill • implement “green deal”; • regulate carbon emissions for coal fired power stations; • reform energy markets to ensure security of supply and ensure fair competition; • create a green investment bank

5. 1. The Localism Bill

6. The Localism Bill Community Empowerment • Public right to veto excessive council tax rises; • Community right to challenge; • Community right to buy; • Local referenda. Governance • Directly elected Mayors; • Abolition of the standards board; • A Genearl Power of Competence; • A Duty to Co-operate. Housing • Social housing reform; • Reform of homelessness laws; • Social housing tenancy reform. Planning • Neighbourhood planning; • Community right to build; • Pre-application consultation; • Enforcement of planning rules. Finance • Scrapping bin taxes; • Reform of council housing finance; • Business rate discounts.

7. Summary of the Localism Bill (1) Governance Directly elected mayors • The government proposes to allow 12 English cities to have executive mayors from 2012, subject to referendums and full scrutiny by elected councillors. Local referenda • This measure gives councillors and councils the power to instigate a local referendum on any local issue. Local authorities will be required to take the outcomes of these referendums into account in their decision making. Abolition of the Standards Board • Serious misconduct by councillors that at present, lead to censure by a local authority standards committee will instead possibly result in criminal conviction A General Power of Competence • That provides local authorities with the “power to do anything that individuals may do” (ie: that that is not prohibited by the law); A Duty to Coperate • A new duty to co-operate to ensure that local authorities and public bodies co-operate with eachother. Working alongside incentives such as the New Homess Bonus, this duty is seen as a driver for behaviour change amongst local authorities. Community empowerment Public right to veto excessive Council Tax rises • The public will be able to approve or veto excessive Council Tax rises. Any local authority setting an increase above a certain amount will trigger a referendum in their area. If councils want to increase Council Tax beyond a specified level, they will have to prove the case to voters. Community 'Right to Challenge' • Voluntary and community groups, social enterprises, parish councils and local authority employees delivering a service will be able to challenge a local authority to let them run that service. Community 'Right to Buy' • Communities will be able to bid for public or private assets when they come up for sale. This will allow communities to save sites which are important to the community. Local referenda • Local people will be able to launch a local referendum on any local issue. Local authorities and other public authorities will have to take the outcomes into account in decision making.

8. Summary of the Localism Bill (2) Planning Neighbourhood planning • The Bill will introduce a new right for communities to shape their local areas. Neighbourhood plans will enable communities to allow development, in full or in outline, without the need for planning applications. Community 'Right to Build' • This measure will allow local communities to take forward development in their area without the need to apply for planning permission, provided at least 50 per cent of the community agrees in a referendum. Pre-application consultation • Prospective developers will have to consult local communities before submitting planning applications for very large developments. This is intended to give local people a chance to comment on proposed developments which may have an impact on them and influence them at an early stage. Enforcement of planning rules • Where people try to flout the planning system, local planning authorities will be able to take strong action. Housing Social housing reform • Local authorities will have the freedom to decide who should be eligible qualify to go on their housing waiting list. This measure will allow local authorities to set waiting list policies that are appropriate to their local area. Reform of homelessness laws • At the moment, homeless people can insist on being provided with expensive temporary accommodation, at the taxpayer’s expense, until social housing becomes available. The Bill will allow local authorities to offer suitable accommodation in the private rented sector, which will fulfill their duty to provide housing. Social housing tenancy reform • Currently, social landlords are normally only able to grant lifetime tenancies. The Bill will enable local authority landlords to grant tenancies for a fixed length (the minimum length being two years). These ‘flexible’ tenancies will give greater scope to councils to free up social housing.

9. Summary of the Localism Bill (3) Finance Scrapping bin taxes • So-called 'bin tax' schemes would have allowed local councils to charge residents for household rubbish collections or fine families for having a full bin. The Localism Bill will stop these schemes taking place.  Council tax referenda • Requirement for local authorities to hold a referendum if they seek to set a level of council tax that is above the threshold considered “excessive” according to the Secretary of State. Reform of council housing finance • The annually centralised system for subsidising council housing will be replaced by a local system. Under the new system, councils will keep their rental income and use it locally to maintain their homes. Business rate discounts • Local authorities may determine business rate discount locally.

10. 2. Housing and Planning

11. Featured announcement Local Decisions: A Fairer Future for Social Housing The Government has announced plans to reform social housing. As part of this: • councils will be able to use their social housing stock to the maximum effect and drive down waiting lists; • housing associations will be able to offer new affordable rents and use this revenue to build more homes; • councils will have greater local discretion to decide allocations and the option to offer flexible tenancies; • councils will be able to help homeless families and existing tenants who are trapped in unsuitable accommodation, are unable to take up a job offer because they can't move.

12. Other key announcements New Proposals for Planning Fees to Make a Fairer System • A new consultation proposes to make the planning fees system fairer. Under new proposals, councils will be able to set their own fees to cover the costs of planning applications. (Communities & Local Government; 15/11/10); Rewards for Homes with the New Homes Bonus • The Government will match the council tax raised from new homes for the first six years through the New Homes Bonus. (Communities & Local Government; 12/11/10); Government Wants New Generation of Social Housing Entrepreneurs • Housing Minister Grant Shapps has urged councils and housing associations to allow their tenants to set up businesses from their homes. (Communities & Local Government, 1/11/10); Spending Review • As part of the Spending Review, the Government has announced that £4.5bn will be invested in up to 150,000 new affordable homes, £2bn invested in the Decent Homes programme and £400m in the Homelessness Grant. (The Treasury; 20/10/10); Government Announces Measures to Protect the Vulnerable • The Government has announced a £10m fund (in 2010-11) for councils in London to help households affected by proposed housing benefit reforms. (Communities & Local Government; 25/10/10); New Housing Deal will Mean New Powers for Councils and Communities • The Government has outlined plans to devolve greater powers to councils to meet the housing needs of their local communitie. As part of this, rules will be changed so councils will be able to keep all the rents and sales receipts that they collect. (Communities & Local Government; 5/10/10); Government Launch Community Right to Build • Housing Minister Grant Shapps has launched the Government’s “Community Right to Build” initiative. The Community Right to Build will give communities the power to develop new homes and other space for community benefit, subject to the agreement of the majority of the community. (Communities & Local Government; 23/07/10)

13. Policy statements • "We will not tell communities how or where they should grow. But the New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs.” • Grant Shapps, (CLG) August 2010 "Regional Strategies built nothing but resentment - we want to build houses. So instead we will introduce powerful new incentives for local people so they support the construction of new homes in the right places and receive direct rewards from the proceeds of growth to improve their local area.“ – Eric Pickles, (CLG) July 2010 "Having a system where Whitehall dictates to local councils what planning fees they can charge is very unfair for local taxpayers around the country who are left paying for the shortfall where fees don't cover costs. "Letting councils set their own fees is a much fairer system for both the applicant and the local taxpayer and will ensure there is flexibility in the system to recover the actual costs of applications.” - Greg Clark, (CLG) November 2010 "The point everyone in this house has got to consider: are we happy to go on paying housing benefit of 30,000, £40,000, £50,000? “Our constituents working hard to give benefits so people can live in homes they couldn’t even dream of? I don’t think that’s fair” – David Cameron, (Parliament) November 2010

14. 3. Economic Regeneration

15. Featured announcement Local Growth White Paper The Local Grwith White Paper has the following objectives: • shifting power to local communities and businesses - by establishing dynamic local enterprise partnerships of local business and civic leaders; • focused investment – by tackling barriers to growth through the £1.4bn Regional Growth Fund to encourage private sector enterprise, create sustainable private sector jobs and to help places currently reliant upon the public sector; • increasing confidence to invest – by creating the right conditions for growth through a consistent and efficient framework for investment, an effective planning framework and new incentives to make sure local communities benefit from development.

16. Other key announcements Government Launches Growth Review • The Government has announced a review of its efforts to create the best conditions for private sector growth. Based on the evidence provided by businesses, a report will be provided by the time of the 2011 Budget. (Business, Innovation & Skills; 29/11/10); Help to Lift Small Business Tax Break Take up • The Government has announced that small businesses and local shops will find it easier to get their tax cuts (Communities & Local Government; 24/11/10); New £1.4bn Regional Growth Fund Goes Live • The Deputy Prime Minister, Nick Clegg, has declared the Government’s £1.4bn Regional Growth Fund open for business (Cabinet Office; 28/10/10); New Incentives for Councils to Support Local Firms and Create New Jobs • Ministers have set out new proposals to enable councils to keep the business rates they collect. However, any change must promote growth and not lead to increased taxes on business; (Communities & Local Government; 28/10/10); Government Kick-starts New Plans for Local Growth • The Government has agreed proposals for twenty-four local enterprise partnerships. The partnerships will see local business and councils working together to drive economic growth and create new jobs in their communities. (Communities & Local Government; 28/10/10)

17. Policy statements “A key element of the coalition strategy are the local enterprise partnerships that will radically reshape the way business and government interact at the local level. It marks a sharp break from the top-down, politically driven regional policy of the last government.” - Vince Cable, (BIS), and Eric Pickles, (CLG) September 2010 • “We will support growth across the whole country, rewarding hard work and innovation in all of our industries. We understand that areas which rely on the public sector for jobs will need special help.” • Nick Clegg, (Cabinet Office) • October 2010 “The old remedy to poverty, deprivation and unemployment was the injection of large amounts of public money. But there was too little emphasis on such vital questions as - where are the entrepreneurs and businesses who are going to rent the new offices? Who's going to employ the people living in new homes?” - Greg Clark, (CLG) October 2010 • “We believe small businesses and social enterprises have a vital role to play in the growth of the UK economy and often they will be the most flexible, the quickest to respond and the most imaginative. That is why we are committed to making it easier for these organisations to compete for government business.”  • Francis Maude, (Cabinet Office), • November 2010

18. 4. Environment and Climate Change

19. Featured announcement The Energy Bill The Bill aims to tackle barriers to energy efficiency, enhance energy security and enable investment in low carbon energy supplies. Measures include: • the “Green Deal” to enable improvements to the energy efficiency of households and non-domestic properties; • powers for the Secretary of State to require private landlords to make reasonable energy efficiency improvements to their properties subject to there being no up-front costs to them; • an obligation on energy suppliers that will provide additional support for low income vulnerable households and for those whose homes are more difficult or expensive to improve; • power to allow the Secretary of State to ensure that energy companies provide their customers with information on their cheapest tariffs, if a voluntary agreement isn’t reached.

20. Other key announcements Department for Energy & Climate Change Publish Business Plan • The Department for Energy & Climate Change has published its business plans which includes commitments to: save energy with the “green deal, deliver secure energy, drive ambitious action on climate chanmge and manage our energy legacy responsibly. (Energy & Climate Change; 11/10); Energy & Climate Change – Spending Review • from 2013, support for heating and insulation for the most vulnerable will be delivered through the Green Deal. (Energy & Climate Change; 20/10/10); Green Deal to Create Green Jobs • The Government’s Green Deal could support a quarter of a million jobs over the next 20 years. (Energy & Climate Change; 21/09/10); Government Publish Data on Carbon Emissions • The Government has published estimates of the carbon dioxide emissions for every local authority in the United Kingdom from 2005-2008. The data reveals that as at 2008 Lewisham achieved the second best performance in both London and the UK for per capita reduction in carbon dioxide emissions, (4.1 tonnes). (Energy & Climate Change; 16/09/10); Business Innovation & Skills – Spending Review • As part of the Spending Review, the Government is to allocate £1bn for the creation of a UK-wide Green Investment Bank. (Business, Innovation & Skills; 20/10/10)

21. Policy statements • “The Energy Bill is designed to help consumers put a stop to wasting energy in their homes through a green deal while making sure our energy system is fit for the 21st century.” • Chris Huhne (DECC) June 2010  “We’re opening up Whitehall’s electricity and gas meters to public scrutiny. There can be no hiding place for energy waste in central government. “Cutting energy use saves carbon and it saves taxpayers’ money. Only by leading by example can we expect businesses and homes up and down the country to follow suit.” - Chris Huhne, (DECC) June 2010 “Warm Home Discount does exactly what it says on the tin, in providing money off vulnerable households’ energy bills to help them afford their heating. We’re requiring energy companies to do this by law, but first we need to get the detail right. Warm Home Discount is a practical way to provide tangible financial help on energy bills to more of the most vulnerable.” Chris Huhne, (DECC) December 2010 “The Green Deal is a massive new business opportunity which has the potential to support up to a quarter of a million jobs as part of our third industrial revolution. “Energy efficiency is a no brainer. We need to tap in to this huge market to save people money on fuel bills, save carbon and help the economic recovery.” - Chris Huhne, (DECC) September 2010

22. 5. Transport

23. Featured announcement Transport – Spending Review The Spending Review settlement is summarised as follows: • reductions of 21% to resource spending, 11% to capital spending and 33% to administration by 2014-15; • vital transport schemes will be pursued across all regions to support economic growth and increase the sustainability of the transport system; • reforms to transport funding so that local people are able to tackle their own transport priorities; • the Highways Agency to be allowed to charge back the cost of event traffic management

24. Other key announcements Councils Urged to Cut Street Clutter • Councils have been urged to get rid of unnecessary road signage to make streets tidier and less confusing for motorists and pedestrians. (Transport; 26/08/10); £15 million for Green Buses to Reduce CO2 • Up to 50,000 tonnes of CO2 will be saved thanks to £15m of Government funding. The Green Bus Fund aims to encourage and help bus operators and local authorities to buy new hybrid and electric buses. (Transport; 14/10/10); Low Carbon Car Clubs Given £40,000 Boost • Car clubs are set to benefit from an extra £40,000 of Government funding. The money will be used to support car club development in the UK. Car clubs have increased massively in popularity with the number of members increasing from just 22,000 in 2007 to more than 127,114 members to date. (Transport; 01/07/10)

25. Policy statements • “We all know that some signs are necessary to make our roads safe and help traffic flow freely.  But unnecessary street furniture is a waste of taxpayers' money and leaves our streets looking more like scrap yards than public spaces. • "We have written to councils to remind them that it need not be this way - we don't need all this clutter confusing motorists, obstructing pedestrians and hindering those with disabilities who are trying to navigate our streets. • "Empowered local communities working together with councils can bring an end to this blight on our national landscape." • Phillip Hammond (Transport) August 2010 "The Coalition Government, in its programme for government, has been clear in its commitment to sustainable travel initiatives such as car clubs to help achieve a greener and more sustainable transport sector. "The figures speak for themselves – each car club vehicle can result in taking 24 private vehicles off the road and the low carbon vehicles used typically emit approx 33% less CO2 than the average car. This is why we are supporting the continued growth of car clubs across the country.“ - Norman Baker (Transport) July 2010

26. 6.Crosscutting issues

27. Featured announcement Big Society Strategy for Charities, Voluntary Groups and Social Enterprises  The Government has launched its “Big Society” Strategy. Plans in the strategy include: • reducing red tape for small organisations; • giving public sector staff the right to form a  co-op or mutual, supported by advice and mentoring; • giving local communities the right to buy or bid to run community assets;continuing to match fund local endowments to encourage giving; • modernising public service commissioning so the most efficient and effective charities can get a fair chance to bid for public contracts

28. Other announcements The Equality Strategy – Building a Fairer Britain • The Government has published its Equality Strategy, which builds on the 2010 Equality Act. (Government Equalities Office; 02/12/10); New Powers Put Londoners in the Driving Seat • As part of the forthcoming Localism Bill, the Mayor of London, councils and neighbourhoods will be handed greater decision making powers. According to Communities & Local Government, the Mayor of London, councils and neighbourhoods are to be handed greater decision making powers over the city’s housing, regeneration, economic development and Olympic legacy. (Communities & Local Governmment; 1/12/10); Council's Red-tape Cut as 4,700 Whitehall Targets Slashed • Measures to reduce top-down reporting for councils have been announced, with the abolition of Local Area Agreements, which will remove 4,700 Whitehall targets from councils reporting. (Communities & Local Government; 14/10/10); Local government expenditure over £500 • The Communities & Local Government Secretary, Eric Pickles, has called on councils to provide financial transparency by publishing spending information over £500 online by January 2011. (Communities & Local Government; 10/08/10); Francis Maude Launches Pathfinder Mutuals • The first wave of Pathfinder mutuals, to be run by entrepreneurial public sector staff, who want to take control of their services, has been announced. (Cabinet Office; 12/08/10)

29. Policy statements • “This is a Big Society approach, decentralising power so people can deal with the issues that concern them. We must not be afraid to do things differently if we are to provide better services for less money. The (Mutualism) Pathfinders show that this vision is possible but it won't happen without real commitment and support.” • Francis Maude, (Cabinet Office) August 2010 • “Localism isn't simply about giving power back to local government. We will push power downwards and outwards to the lowest possible level - so that power is held by local people. People want more for less in their services and we will free up councils to make that happen.” • Eric Pickles (CLG) November 2010  “We are entering a new era of openness and transparency where all parts of Government are making information readily available to the public. "So it is great to see that one hundred councils have now put their spending over £500 online. With just six weeks till the New Year I urge those that have not done so, to catch up with their peers as soon as possible.” - Baroness Hanham, (CLG) November 2010 “It's local people who have the energy and the best ideas that can transform communities, not us here in Whitehall. But for too long the stranglehold of bureaucracy has stopped citizens and communities from getting on and taking control.” Greg Clark, (CLG) November 2010

30. Some food for thought….. • Following a line by line examination, we need to fully understand the challenges and opportunities presented by the Localism Bill ; • The impact of public sector spending cuts in a borough that is largely dependent upon public sector spending; • Responding to the national focus on the development of small business, promotion of social enterprises and mutualism; • Getting our collective heads around the implications of new powers and new duties; • And what exactly does the “Big Society” mean in a borough like Lewisham

31. Horizon Scan Summary of topical policy Issues for the Sustainable Development Partnership Board 21 December 2010