Update on Welsh Issues Daniel Hurford WLGA

1. Cymdeithas Llywodraeth Leol Cymru Welsh Local Government Association Update on Welsh Issues Daniel Hurford WLGA @WelshLGA www.wlga.wales

2. WLGA – Who? • You! • Leader: Cllr Debbie Wilcox (Newport) • Independent Group Leader: Cllr Hugh Evans (Denbighshire) • Spokespersons, Executive Board and a Council of 79 Members • Politically-led representative body of the 22 council in Wales • Associate members National Parks and Fire & Rescue Authorities • Corporate Membership of the Local Government Association (LGA) but autonomous on Welsh issues • Based in Local Government House, Cardiff, also has regionally based officers, plus a Brussels office (Brexit impact) • Political management “Officers are on tap not on top” • 60 staff. £10m budget £3.5m in reserve. • Since 2010 reduced WLGA Subscriptions by 28% lost 54 staff

3. Unfortunately your chief preoccupation is going to be money or the lack of it “Sssssshhhhhhh”!

4. Austerity Deniers - Some think you are a bunch of “whingers”!

5. Local Government Cuts – The wider context

6. In local government services the scores on the doors…

7. It’s the most publicly visible services being affected.

8. Return of our old friend the “Elephant in the room” By 2021, the NHS in Wales could swallow up 56% of the Welsh Government budget

9. In a zero sum game, you switch another £500m into the NHS... Regulatory services £42,554m Street Cleansing £50,778m Recycling £99,685m Winter Maintenance £13,908m Leisure Services £72,421m Fire & Rescue £115.229m Planning, Econ Dev £84,000m Libraries £40.474m Circa = £525million By 2021 The NHS in Wales could swallow up 56% of the Welsh Government budget

10. Your challenge as Cabinet Members – The Squeeze from the “Big Two”

11. Another challenge: WG budget cuts = council service cuts. But performance…

12. Public beginning to feel it too?

13. Ok, let’s just take a moment to look back on happier times.

14. Eight (or nine) was the “magic” number

15. Local government reform – what next?

16. The thoughts of Cabinet Secretary Mark Drakeford AM • Retain existing 22 local authorities - the ‘front door’ through which people access services – but with key services being delivered regionally. • “Behind this front door, we would have an enhanced level of mandatory and systematic regional working. This will ensure that services are planned and delivered on the right scale.” • The Social Services and Well-being (Wales) Act (2014)The Social Services and Well-being (Wales) Act is the law for improving the well-being of people who need care and support, and carers who need support. Regional Partnership Boards • The Well-being of Future Generations (Wales) Act 2015 This Act places a legal duty on public sector bodies to think strategically about the long-term impact of their decisions and to work collaboratively to tackle health inequalities and climate change. PSBs

17. Focus on councils and councillors as the ‘front-door’ to regional services Two models to deliver such services in the future: one based around city regions/regional partnerships covering strategic transport, land-use planning and economic development Another aligned to Local Health Boards for services such as education improvement, social services and public protection.

18. WARNING Danger Ahead – Partnership complexity

19. The thoughts of Cabinet Secretary Alun Davies AM… Andrews Reform Agenda (July 2015): • “…hard in tone rather than hard in analysis”. • “We haven’t had that debate about the general power of competence. We haven’t had that rich debate about the exciting opportunities that local government has if we create stronger unity for local government. • “We could be entering into a real golden age for local government. It doesn’t feel like that at the moment. It feels like there’s a fight taking place between Welsh Government and Local Government. If that is the case we’re all losing surely”

20. The thoughts of Cabinet Secretary Alun Davies AM… Andrews Reform Agenda (February 2016): • Isn’t the hard reality that we’re discussing Leighton Andrews’ map because there’s been a total lack of leadership from local government in defining that way forward? • …. we’ve had two or three years of very sterile debate around this matter, when what we should have had is leadership. It would be better if that leadership came from local government than from the Welsh Government.

21. The thoughts of Cabinet Secretary Alun Davies AM… Andrews Reform Agenda (February 2016): • What I think most of us would like to see…is that local government leads this process, that local government leads this change, and that local government has the ideas and the vision for the future, • I think many of us want to see more powers accrued by local government and not a centralisation of power, and I think it would be useful for us to understand your views on some of those issues. However, we do have this roadblock, Minister, and I don’t think we can get around it simply by making a statement that this must happen… • We need to get around that roadblock by talking, by agreement, by consensus, by consent, and, if we’re able to do that, then you’ll have a far more profound opportunity to make sustainable far-reaching reforms than using the whip to drive through an unpopular policy.

22. The thoughts of Cabinet Secretary Alun Davies AM… Drakeford Reform Agenda • ? • Bound by Cabinet collective responsibility Davies Reform Agenda • ??

23. Facing the future and the possibilities across Wales

24. The inevitable Brexit Slide Plans to create the world’s first compound Wales in receipt of structural funding for the Valleys and West Wales up to 2020. Of the £1.8bn committed, some 40% has yet to be allocated. Rural Wales badly affected. Local Government lobby to Westminster. Money needs to go to the local level. What will the shape of a new UK regional policy look like?

25. A new role for Joe and Josephine Public: pay more and do more? Public responsibility – paying more for valued services. The most successful European countries all have tax rates expressed as a % of GDP over 40% Days when councils provided all services “in house” have gone. Stock Transfer to RSLs Community mutuals, co-ops, social enterprises, the charity sector as the way forward? Community trusts – Leisure & Libraries The active citizen – running theatres, cinemas and libraries

26. Digitalisation - the next stage in service evolution

27. Sustainability of Councils – where are you? WHATS YOUR OPERATING MODEL? • Adaptive innovation: organisations creatively redefine their role and are able actively to affect their operating environment, working in close partnership with others and looking for new opportunities • Running to stand still: organisations are led and managed well and can see a positive future, provided that they can keep up the current pace and that there are no major shocks • Nostril above the waterline: organisations are only able to act with a short-term view, their existence is hand to mouth and even a small external change might seriously challenge their viability • Wither on the vine: organisations have moved from action to reaction. Their finances and capacity are not sufficient to the task and they are retreating into statutory services run at the minimum levels or handing back the keys

28. Sustainability of Councils – where are you?

29. Conclusions • Despite cuts councils doing great work – a force for good • Time to end austerity • Local authority sustainability over time • Brexit debate and the formulation of a new regional policy for Wales • Local authority role in promoting economic transformation • Unfinished work on local government reform • Need to make a clear case for preventative services from social care to school meals

30. Cymdeithas Llywodraeth Leol Cymru Welsh Local Government Association Thank you for listening Daniel Hurford daniel.Hurford@wlga.gov.uk 02920468615 @WelshLGA www.wlga.wales