The District Councils’ Network, which represents 200 district councils across England, is calling on the Government ahead of this year’s budget to allow district councils to introduce a new 2 per cent  prevention precept on council tax to maintain and invest further in prevention services such as improving housing, providing leisure and recreational facilities, offering debt advice, tackling homelessness, supporting troubled families and improving air quality all of which help reduce demand on social care and health services.

Analysis by the DCN in its budget submission has found that a 2 per cent precept could raise up to an additional £25 million for district councils which would help to keep residents and their families from needing to access acute social care and the NHS by reducing demand for these services.

For a Band D property in a district area this would be an estimated 7p per week increase on the current average district council tax charge.

For every £1 spent on prevention, district councils say they can make up to £70 worth of savings on health spending in the long term. For example:

• By adapting 100,000 homes to meet the needs of older people, districts could save the NHS £69 for every pound spent.
• Investing in sport, leisure and recreation – core district functions – not only delivers health benefits but can generate £11.2 billion a year in savings, £1.7 billion of which is thought to be via savings to health care-associated costs.
• By improving 100,000 homes to protect older people from the cold weather districts could save the NHS £34.19 for every pound spent.
• The average cost to the State of a fractured hip is £28,665. This is 4.7 times the average cost of a major housing adaptation (£6,000) and 100 times the cost of fitting hand and grab rails to prevent falls.

With adult social care at a tipping point district councils want to play their part in reducing the burden on the social care system and in turn the NHS. According to the Local Government Association, adult social care faces an annual funding gap of £2.3 billion by 2020, with no signs of these pressures abating.

Whilst some of these pressures have been met by a one-off £2 billion injection into the system, no durable solution has been found. The DCN has been clear that changes to the New Homes Bonus to fund a very small part of this does not constitute a solution as it simply recycles existing local government funding. The New Homes Bonus must instead continue to reward increasing housing growth.

A 2 per cent prevention precept would give district councils additional resources to address health and wellbeing issues in their communities before people require more formalised acute based intervention.

Cllr John Fuller, Chairman of the District Councils’ Network, said:

“It is time the Government recognised the important role district councils play in prevention and early intervention. We know that for everyone £1 spent, district councils can save the NHS up to £70, just by adapting homes to prevent falls, improving home insulation and heating or providing recreational and leisure services.

“A 2 per cent prevention precept would go some way to reducing pressures on the social care system, by solving rather than managing problems, and allowing resources to be refocused on tackling problems one family at a time before they occur.

“Prevention is always better than cure. If we are to reduce pressures on the NHS and stop people from entering the social care system unnecessarily, districts council must be given the resources to invest in prevention.”

ENDS

NOTES TO EDITORS

1. DCN’s Autumn Budget Submission can be found here
2. The district council contribution to public health: a time of challenge and opportunity
3. Statistics relating to the average cost of treating hip fractures can be found here.
4. LGA analysis on the annual funding gap in adult social care can be found here.

Since the Brexit referendum vote, economic growth has assumed even greater importance as the axis around which local government must pivot its activities.

A week prior to the conference we had seen the publication of a green paper on Industrial Strategy and legislation to enable the 100% retention of business rates. On the opening day of the conference the Brexit White Paper was published and delegates were preparing for the much anticipated new Housing White Paper

As a network our ability to secure a trio of high-profile ministerial speakers – Communities Secretary Sajid Javid, Business, Energy and Industrial Secretary, Greg Clark and Housing and Planning Minister Gavin Barwell – to this inaugural conference was clear proof that the Government places great stock in the potential of districts to deliver growth.

Sajid Javid praised districts for their ‘can do attitude’ noting their strong track record of managing the heavy-lifting of deficit-reduction in the past six years while delivering impressively on housing, efficiency and local economic growth.

The topic of the future of devolution in district areas and the place of districts in an evolving local government structure was raised. And the Communities Secretary insisted the process was alive and well, adding he would turn his attention to bids not included in the first round of mayoral elections after May.

He also restated his pledge that when it comes to determining structure, ‘one-size does not fit all’ – and his personal philosophy of putting what works best for the communities we serve above rigid, top-down ideology and structures.

Speaking in advance of the Housing White Paper, housing minister Gavin Barwell noted the success of districts as the housing and planning authorities in siting more than one-in-two every new build homes nationwide. He also acknowledged the important role local authorities wishing to get back into building homes could play in boosting supply.

Business, Energy and Industrial Strategy Secretary Greg Clark told delegates that district councils were crucial to delivering the growth vision outlined in his green paper and had a real opportunity to influence the Industrial Strategy as it is developed over the coming months.

He told the conference that now was the ideal opportunity to respond vigorously and creatively to the industrial strategy – urging local government to seize the initiative and tell central government how, based on experience and evidence, local economies should be shaped. In his speech, chair of the Midlands Engine, Sir John Peace,also stressed the importance of connectivity and agility in driving the post-Brexit economic revival.

As an inaugural event, the conference – attended by more than 180 delegates – played out in a spirit of vibrant hope and courageous collective resolve to rise to the challenges we face.

The County Councils Network (CCN), District Councils’ Network (DCN) and Rural Services Network (RSN) have jointly welcomed the Government’s intention to move to 100% retention of business rates by 2020. Clearly this is ambitious, complex, and challenging, but our networks can support this if it enables further devolution, ensures key services are sustainable over time, and allows localism to flourish.

We support this ambition on the basis that it will enable further local autonomy and self-reliance, as well as encouraging and rewarding future growth.

Clearly, the new system will be highly complex to design, but it must be made as simple and as fair as possible, and needs led from day one to ensure that local authorities are incentivised and rewarded for achieving growth.

Any new system of funding must be sustainable for local authorities in the short, medium and long-term. Equally the impact of Government policies on major infrastructure and commercial decisions, e.g. power stations, to dramatically affect an area’s business rates prospects must be recognised and taken into account.

It will be crucial that all areas can invest in long-term growth, in consultation with businesses, including the ability to use an infrastructure levy if there is agreement locally.

Depending on whether the economy grows or declines, there will be both risks and opportunities for local government. Both district and county areas will have a significant national role to play in supporting, encouraging and promoting growth. However, this must be adequately supported by Government through a system of appropriate incentives and rewards. And Government funding and strategies for capital infrastructure investment must be demand-led and not purely focused on cities.

Equally, atypical pressures on demand-led services in county and district areas – which continue to rise – must be fully recognised through the fair funding review and business rates system. This will play a key role in adjusting funding for adult social care, public health and prevention, supporting the NHS and funding the everyday services people value most.

Our networks have, therefore, collectively identified core principles that are integral to ensuring an effective and fair funding system. Alongside these principles we have identified key issues which must be addressed in relation to the needs review, the new business rates system and wider funding and investment.

We remain committed to working with the Local Government Association (LGA), professional organisations such as Cipfa, ministers and relevant Whitehall departments, to support the re-localisation of business rates. While our networks will reply individually to these consultations, our responses will also reflect the shared principles that we have identified in this document.

Cllr Paul Carter, Chairman, County Councils Network

Cllr Neil Clarke, Chairman, District Councils’ Network

Cllr Cecilia Motley, Chairman, Rural Services Network

For list of full principles please click link to: 100% Business Rate Retention – CCN, RSN and DCN Shared Principles

In a groundbreaking report last year, renowned health think-tank The King’s Fund dubbed district councils ‘the sleeping giants’ of public health and social care.

As a network the DCN is committed to taking forward the 10 key report recommendations. The paper acknowledged strong evidence of good practice among districts. The report also highlighted that districts must build on this evidence base and cement district relationships within the new healthcare architecture.

To harness this commitment and capture the enthusiasm of senior district members and officers for advancing this agenda, we recently held a sell-out conference at Local Government House to explore and take forward the role of districts in public health and health prevention.

The conference explored examples of preventative health intervention from across the country and further identified the great potential we have to do significantly more at district level.

This conference also heralded the launch of the DCN Public Health Task Force, which is chaired by that formidable champion of public health, Professor John Ashton. The panel includes stakeholder representation from the Department of Health, Public Health England, NHS Clinical Commissioners, the Local Government Association, the Association of Directors of Public Health as well as county and district members.

The Task Force has set in motion an action plan to fulfil all 10 recommendations made by The King’s fund and provide a national conduit between the health service and district councils. This is vital if districts are to engage in a meaningful way with Health and Wellbeing Boards and get a hearing in the development of Sustainable Transformation Plans.

Not surprisingly, there is huge support among our members for promoting the district role in prevention into mainstream health and social care policy. The district difference delivers significant upstream savings for the health service. For example , every £1 spent by a district council adapting homes where a serious fall is likely to otherwise occur could save the NHS £69.37 over 10 years.

It is clear that districts deliver on prevention. With the prospect of a fiscal ‘reset’ at the Autumn Statement and a ‘reset’ within NHS bodies to improve their financial and operational performance, the DCN will again make the case for equity with the rest of the local government family.

Districts are well placed to ensure that STPs reflect the health and social care needs of the geographies they cover. If all 201 districts are fully engaged with this agenda it will deliver a telling and cost-effective difference in our localities across England.

Cllr Neil Clarke MBE is chairman of the District Councils’ Network

“Welcome everyone to this year’s DCN Assembly at the LGA conference.

“I am also especially pleased to welcome the Secretary of State for Communities and Local Government, Greg Clark, for joining us and thank him for his attendance.

“Following Sandra’s announcement of the result of the ballot I was very pleased to see that, even though we are out of the EU, and out of Euro 16, I am still IN at DCN. Thank you very much indeed for all your support. I know this coming year is going to be extremely eventful. More of this later.

“I am privileged to be able to say that DCN represents ALL district councils, and I believe that is significant when it comes to any discussions or lobbying on issues with Government, with ministers and with the Secretary of State.

“Thank you, Greg, for allowing us the time and access to enable sensible debate to take place on the various issues we raise on behalf of district councils.

“Although we are many in body, we are a cross-party represented body pursuing common aims, a diverse membership from every part of the country, …..we are together when it comes to achieving shared goals – better outcomes for the people and places we serve.

“What have we achieved in the last year? At Harrogate last year, I said we needed to focus on the following key issues:

• Economic Growth and Housing Growth
• Collaboration and Improvement
• Financial Security including New Homes Bonus, full retention of Business Rates and more localisation of fees and charges.

“We commissioned The Kings Fund report on the districts’ role in the health prevention agenda, which identified districts as the “sleeping giants” of Public Health and Social Care prevention, recognising we provide amazing value for money and Return on Investment in helping mitigate the burden on the NHS and Social Care.

“Among the many things the report told us was that for every £1 districts invested in preventative services, it saved nearly £70 further down the line. That is a pretty good return on investment in my book.

“We have set in motion a joint working group with CCN , RSN and CIPFA to develop joint proposals for what 100% business rates retention could look like in our district and county areas.

“We have fought hard and secured lobbying victories on key issues such as freedom to increase council tax by 2% or £5 and a three-year stay on negative RSG, roll out of retention of business rates and piloting of localised planning fees.

“What do we do on your behalf? We have launched the APPG for District Councils in order that we can raise awareness of issues affecting District Councils with Parliamentarians, in the hope we can increase their understanding of lobbying on District issues. I thank Mark Pawsey MP for Rugby for taking up the role of chairman of the APPG.

“Our staff development programme continues to prosper, as it has for the last three years, and begins again soon.

“I have also instigated plans for our first DCN annual conference, a two-day event, which will be staging in mid-November.

“So, I have talked about what we have done in the past, but now we need to bring ourselves up to date and look to the future.

“We know the result of the EU referendum and now political intrigue reverberates around the Palace of Westminster, but this isn’t House of Cards – this is for real. We’re talking about real people, real businesses and real communities. Our communities – in district council areas, where we are close to the people, are the most efficient form of local government.

“Greg… I wrote this before your speech…as you said…

“As we await the outcome of the Conservative Party Leadership contest, I have a message for the next Prime Minister.

“We want to work with you, but let’s engage in strategic dialogue to outline the issues affecting district councils, areas that account for nearly 60% of England’s economic output.

“We provide 86 of the 137 essential local government, so it’s important that MPs are left in no doubt that district councils provide an incredibly important part of government delivery. We want to engage in discussion on issues such as devolution.

“Let’s get more deals done, quicker and in a less bureaucratic way than thus far. Where deals are faltering, let’s deliver what the locals want – to engage more civil servants to work on deals quicker. The cost of negotiations is challenging councils’ resources. We want more powers devolved to our local areas, ones that can be tailored to suit local needs, let locals decide whether they want an Elected Mayor or not, rather than it being a deal-breaker.

“Local areas know best what is required to support housing and business growth – One size does not fit all. I hope the next Prime Minister will allow us to drive this agenda much faster and for decisions to be made locally.

“To combine with this, as funds are repatriated from the EU, back to the UK, let us discuss how this funding can be re-directed to local areas or regions to help deliver the large agendas facing local government, not least to support housing and business growth with new infrastructure, and to support the growing prevention agenda relating to health and wellbeing, as I outlined earlier.

“We must take the Business Rates debate forward. We are fully engaged with the joint-working led by DCLG and LGA.

“In addition, I want to use the valuable joint work we have now started with CCN and other stakeholders to present a cogent and sustainable case for signing off by the Government – one prepared by local government for local government.

“Don’t forget Prime Minister, local government is the most efficient part of the Public Sector, but we do need your support, as you need ours.

“Accelerate the localisation of fees and charges and allow us to control our destiny. Hear what we have to say.

“Engage in taking forward reform of the planning system quickly. In this new world, we have to work together to boost housing growth and business growth……and in that respect, to up our game even more on employment and skills. We owe it to the potential in our young people to create the opportunity for them to use their skills and talents with greater innovation and more job creation.

“Time has been spent in many quarters with recrimination and blame and saying what should or should not have been done. We need stability for the sake of UK PLC. I prefer to say, “We are where we are” – so now let’s get together, and get on with the job, grasp new opportunities and work for the future, not for the past.

“The DCN believes in local government that works in partnership in localities to deliver what is right for people and place. Districts working together in clusters and with other private and public sector partners need to be the building blocks for delivering cost effective and relevant public services that people value, including providing leadership of place to ensure vibrancy, prosperity and social cohesion.

“We need the new Prime Minister to lead the stability that is now required, to allow us to plan and re-shape the new look of our economy, resources, communities and lifestyle. The world is watching.

“I look forward to working with all my colleagues across all parties and with the future Government.”

Entitled “Building Better Collaboration”, the report from University of Birmingham’s INLOGOV centre argues two-tier working has stood the test of time and calls for strong action and leadership from district councils to drive public service reform and economic growth in shire areas.

The academics identified five key themes that influence effective collaboration: leadership; selflessness; trust, momentum and risk.

• Selfless behaviour as a critical success factor is ‘completely role-appropriate for districts’ as place-shapers.
• In practical terms, this means districts councils shouldering a bigger share of the costs for innovative projects (economic growth, early intervention, homes or shared services) delivered for the good of the people and places they serve than they will get back in direct benefit.
• Audacious leadership means the willingness of chief executives and council leaders to take responsibility for driving change.
• Momentum is about ensuring that the pace vital for change is maintained, and small obstacles are not allowed to risk stalling projects.
• Building trust across and beyond local government to embrace the wider public sector, the third sector and commercial partners.
• A sense of shared risk injects far more urgency into risk management and failure prevention.

The report also recommended councils should pay heed to three key factors which influence collaborative performance at an individual, organisational and structural level.

Firstly this would require districts to nurture talented leaders able to drive collaborative working.

Secondly, improved performance would also depend upon an organisational culture of cross working with agencies across the board – including counties, central government departments and agencies, the voluntary sector, Clinical Commissioning Groups, commercial operators and Local Enterprise Partnerships.

And finally, on a structural level, this would involve district councils working together to face down and overcome regulatory and national policy hurdles.

To spread best practice the report contains 10 carefully selected case studies of successful collaboration across broad service areas – economic development health and wellbeing and service transformation.