Devolution should back the success of districts in delivery. It should not distract from the local recovery effort or reduce delivery capacity through forcing reorganisation into a less local, less agile, less responsive local government pushed by interests wanting county unitary councils everywhere.

Local governance is a local matter, places must be free to decide how to organise services and to progress any kind of reform only where there is significant local agreement.

The debate took place on 19/10/2017 and was sponsored by Lord Greaves.

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.

“District councils, as the housing and planning authorities, are at the forefront of housing delivery, enabling almost 50 per cent of new housing completions last year and approving 90 per cent of planning applications. The DCN fully supports the Government’s housebuilding ambitions and we will continue to play a central role in helping to deliver them.

“We have concerns that a national formula may never take into account all local constraints but, whilst contentious, this may provide greater certainty in plan making and speed up the process in some cases, an outcome which would be welcomed. Our members will want to be reassured that where there are overriding environment or infrastructure constraints that this must be taken into account in the plan making process.

“To deliver additional housing growth, district councils must be given greater fiscal freedom and incentives to truly unlock their potential. We continue to call on government to ensure that the New Homes Bonus incentivises all housing growth by removing the baseline threshold, unlocking planning permissions that are not being delivered, increasing the time available to spend Right to Buy receipts, allowing Districts to retain 100 per cent of Right to Buy receipts to build new homes and to lift the borrowing cap for the Housing Revenue Account.

“The DCN has long called for an increase in planning permission fees and we therefore welcome the Government’s recommitment to increasing planning fees by 20 per cent, which must now be agreed by Parliament at the earliest opportunity. We also welcome the potential for a further 20 per cent increase going forward.”

ENDS

About DCN

The District Councils’ Network is a member led network of 200 district councils. We are a Special Interest Group of the Local Government Association (LGA), and provide a single voice for district councils within the LGA and to Central Government.

• The District Councils’ Network was established in 2009 and works on behalf of all district councils nationwide.
• 200 district councils are represented on the Network’s Assembly by council leaders nationwide.
• An elected group of leaders represent the district councils nationwide on a 22-strong Member Board.
• A corresponding group of Chief Executives represent councils on the Chief Executives Group. https://districtcouncils.info/  Twitter: @districtcouncil

About DCN

The District Councils’ Network is a member led network of 200 district councils. We are a Special Interest Group of the Local Government Association (LGA), and provide a single voice for district councils within the LGA and to Central Government.

• The District Councils’ Network was established in 2009 and works on behalf of all district councils nationwide.
• 200 district councils are represented on the Network’s Assembly by council leaders nationwide.
• An elected group of leaders represent the district councils nationwide on 22-strong Member Board.
• A corresponding group of Chief Executives represent councils on the Chief Executives Group. https://districtcouncils.info/  Twitter: @districtcouncil

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.