Central‐Local Relations under the Local Government Act 1999: A New Consensus?
| Date | 01 January 2000 |
| DOI | http://doi.org/10.1111/1468-2230.00251 |
| Published date | 01 January 2000 |
| Author | Peter Vincent‐Jones |
LEGISLATION
Central-Local Relations under the Local Government
Act 1999: A New Consensus?
Peter Vincent-Jones*
The Local Government Act 1999, which received the Royal Assent on 27 July
1999, is Labour’s first step1in the implementation of plans for the modernisation
of local government trailed in recent Green and White Papers,2and arguably the
most significant local government legislation for a decade.3Part I of the Act
abolishes compulsory competitive tendering (CCT) in England and Wales from 2
January 2000,4imposing in its place a duty on certain public authorities to make
arrangements for the achievement of ‘best value’ in the performance of their
functions. Part II replaces current central government powers to cap local authority
budgets with more flexible reserve powers to regulate levels of council tax, and
increases the responsibility of local authorities for the payment of council tax
benefit. While the continuation of capping powers has been highly controversial,
the best value policy initiative has received support across the political spectrum
and been welcomed by a wide range of business, trade union and local government
bodies.5At the same time as benefiting politically from the ending of the
increasingly unpopular CCT regime, the Government has economic reasons for the
reform, believing that the new framework can achieve a 2 per cent per annum
efficiency target and save £2 billion-worth of public money from the £75 billion a
year local government budget which currently accounts for some 25 per cent of
total public expenditure.6
ßThe Modern Law Review Limited 2000 (MLR 63:1, January). Published by Blackwell Publishers,
108 Cowley Road, Oxford OX4 1JF and 350 Main Street, Malden, MA 02148, USA.
84
*Lancashire Law School, University of Central Lancashire.
1 HC Deb vol 323 col 124 12 January 1999 (Ms Armstrong, Minister for Local Government).
2 In England the consultation papers Modernising Local Government: Improving Local Services
Through Best Value (1998) and Modernising Local Government: Improving Local Financial
Accountability (1998) were followed by the White Paper Modern Local Government: In Touch with
the People, Cm 4014 (1998). The corresponding consultation papers for Wales were Modernising
Local Government in Wales: Improving Local Services Through Best Value (1998) and Modernising
Local Government in Wales: Improving Local Accountability for Council Tax (1998) followed by
Local Voices: Modernising Local Government in Wales, Cm 4028 (1998). The White Paper proposals
for new political management structures and an ethical framework to enhance local accountability are
contained in the Local Government (Organisation and Standards) draft Bill.
3 The Government’s view is that ‘the Bill marks a new spirit of consensus and cooperation in the
development of public services . . . It is a third way, designed to reform public services, build new
partnerships between private and public sectors, encourage innovation and new forms of service and
protect the council tax payer’: n 1 above, col 133.
4 The Government resisted arguments that CCT should be abandoned before this date: HL Deb vol 599
col 611 12 April 1999 (Lord Whitty). The repeals are set out in s 21 and Sched 2: Local Government,
Planning and Land Act 1980 Part III; Local Government Act 1998 Part I, s 32 and Sched 6; Local
Government Act 1992 ss 8–11 and Sched 1.
5 Select Committee on Environment, Transport and Regional Affairs, Eleventh Report, Implementation
of the Best Value Framework (HC 705–I, 1997/98) para 2.
6 HL Deb vol 599 col 608 12 April 1999 (Lord Whitty).
This note considers whether the apparently liberalising measures contained in
the legislation mark a reversal or a continuation of the long-term trend in the UK –
accentuated by the Conservative administrations from 1979 – towards central at the
expense of local government power. This theme is considered against the
background of the emerging tension between centralisation and devolution in New
Labour’s political and constitutional reform agenda. The Welsh Assembly will
take over the local government powers currently exercised by the Secretary of
State together with the new best value and capping powers. (The Act does not
apply to Scotland, the modernisation of local government there being a matter for
the Scottish Parliament and Executive). This and other forms of devolution
involving the performance of public functions by regional assemblies, locally
based agencies and government-appointed bodies do not necessarily imply
devolution to local government, indeed such developments might be entirely
consistent with a policy aim of further erosion of the powers of local councils.
Best value will be examined from a regulatory perspective in comparison with
elements in central government’s attempt to control local authorities through
specific legislation that defines duties, makes arrangements for monitoring
compliance and lays down enforcement powers and sanctions, this perspective
will enable the regulatory techniques embodied in the different enactments to be
contrasted and the new framework to be evaluated.8Overall it is argued that the
new legislation is significant for its shift in regulatory style rather than for any
fundamental change it heralds in the pattern of central-local relations and the
balance of power between central and local government established under the
Conservatives.
Best value duties
The statutory duty of best value is set out in section 3(1): ‘A best value authority
must make arrangements to secure continuous improvement in the way in which
its functions are exercised, having regard to a combination of economy,
efficiency and effectiveness.’ The duty, which is deliberately vaguely worded in
order to minimise the possibility of legal challenge,
9
is owed by best value
authorities ‘to their local community.’
10
The duty applies, in a similar manner to
CCT, to
local authorities that have tax raising or precepting powers, including
police, fire, civil defence, waste disposal and passenger transport authorities
7 On this legislation and its relationship to the Local Government Act 1980, see Radford, ‘Competition
Rules: The Local Government Act 1988’ (1988) 51 MLR 747.
8 CCT remains important for other reasons. Competitive tendering continues according the prescribed
timetable right up to the date of abolition, and all contracts awarded will be binding after this date for
their full duration. The latest guidance (Circular 16/97) reveals that the Government has no intention
of relaxing the rigours of CCT in the transitional period. Furthermore, best value may be regarded as a
natural successor to CCT: ‘Best value is a linear descendant of the principle of CCT. Without CCT
there would not have been best value. To be honest about it, the one grew out of the other’: HC Deb
vol 323 col 145 (Mr Curry). For an analysis of this policy continuity see Vincent-Jones, ‘Competition
and Contracting in the Transition from CCT to Best Value: Towards a More Reflexive Regulation?’
(1999) 77 PA 273.
9 The Minister made clear in evidence to the Select Committee that the duty was not intended to be
absolute in a narrow legal sense, n 5 above, para 19.
10 HL Deb vol 599 col 572 12 April 1999 (Lord Whitty, moving the Bill at second reading). ‘It is the
duty that local authorities will owe to local people to provide quality services at an acceptable cost’:
Ministerial response to a question from the Select Committee, n 5 above, para 11.
January 2000] The Local Government Act 1999
ßThe Modern Law Review Limited 2000 85
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