Councils are still living it up

Councils are in the dog house again, following the publication of a report claiming that £7bn is wasted through ineffective land and building use. Chairman of the report, Matthew Hancock MP, and Vice-Chairman of the Local Government Association Richard Kemp debated the issue on Today and they revealed why the revolution in local government has stalled.

Kemp made the most substantial point: recalcitrance and rivalry in Whitehall impairs reform of the localities. For instance, councils cannot unite libraries, Job Centre Plus and the One Stop shops into one building because the DWP has not yet begun its reform of Job Centre Plus. This reinforces the sense that the government has not yet moulded the Civil Service to its precise needs – there have been various complaints about the DWP, the Treasury and the particularly the MoD.

But, overall, Kemp’s position reflects the prevailing inertia in town halls. Even before the Localism Bill, councils had the power to rationalise land use. Many have done so. For instance, Suffolk County Council has already installed a single public sector estate, where services operate under one roof. Councils such as Hammersmith and Fulham are making similar arrangements and reaping similar savings.

Kemp replied that such reorganisations were unaffordable when cuts are being made to services. It’s a familiar siren, but one that is largely invalid. The marked indifference to efficiency, the reluctance to sell property in a slightly unfavourable market, and the rejection of innovative funding and management are all symptomatic of local government’s determined inaction; decried here by a former librarian. And, of course, old habits die hard. When Newnham Council rationalised 26 of its properties at the end of last year, it spent £9,000 on five designer lights.