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| How should councils sell the latest cuts to us? Here are four ways | |
| (35 minutes later) | |
| Local councils have generally responded practically and effectively to the financial squeeze since 2010. They have managed matters internally and not engaged in a great deal of reaching out to the public. Even if the government lifts the cap on council tax rises in an effort to address the crisis in social care, as has been reported, the pressures on other, non-statutory services are likely to intensify. As a consequence of this new financial reality, different council strategies are now coming to the fore. But how to discuss cuts with citizens? | Local councils have generally responded practically and effectively to the financial squeeze since 2010. They have managed matters internally and not engaged in a great deal of reaching out to the public. Even if the government lifts the cap on council tax rises in an effort to address the crisis in social care, as has been reported, the pressures on other, non-statutory services are likely to intensify. As a consequence of this new financial reality, different council strategies are now coming to the fore. But how to discuss cuts with citizens? |
| Many local government services are at a pinch point. Libraries, for instance, took a £25m hit to their budgets in the year to March 2016, and many other council services are facing big cuts. The National Audit Office in its 2014 report was complimentary about the way in which local government has adapted. Savings have been made through reducing employee levels, selling assets, and making other cost-reductions, rather than engaging in fundamental service restructuring. | Many local government services are at a pinch point. Libraries, for instance, took a £25m hit to their budgets in the year to March 2016, and many other council services are facing big cuts. The National Audit Office in its 2014 report was complimentary about the way in which local government has adapted. Savings have been made through reducing employee levels, selling assets, and making other cost-reductions, rather than engaging in fundamental service restructuring. |
| In the late 1990s and early 2000s, some councils held a referendum on raising council tax | In the late 1990s and early 2000s, some councils held a referendum on raising council tax |
| But as further spending cuts come forward, the NAO expressed a fear that over half of those authorities responsible for education and social care spending “are not well-placed to deliver their medium-term financial strategies”. | But as further spending cuts come forward, the NAO expressed a fear that over half of those authorities responsible for education and social care spending “are not well-placed to deliver their medium-term financial strategies”. |
| The next phase of managing cuts is likely to be more challenging, and may require dialogue with the public rather than behind-the-scenes fixing. Here are four options that councils might consider: | The next phase of managing cuts is likely to be more challenging, and may require dialogue with the public rather than behind-the-scenes fixing. Here are four options that councils might consider: |
| 1. Vary council tax bands | 1. Vary council tax bands |
| The first option is to ask citizens to pick up the tab through paying more in council tax – by holding a referendum if necessary and depending on whether the government raises the current limit of 4%. Liverpool’s mayor is interested in this option and is proposing a referendum for a 10% increase in council tax. A small number of councils tried this tactic in the late 1990s and early 2000s: Milton Keynes, Croydon (twice) and Bristol. | The first option is to ask citizens to pick up the tab through paying more in council tax – by holding a referendum if necessary and depending on whether the government raises the current limit of 4%. Liverpool’s mayor is interested in this option and is proposing a referendum for a 10% increase in council tax. A small number of councils tried this tactic in the late 1990s and early 2000s: Milton Keynes, Croydon (twice) and Bristol. |
| How did things work out? A report about how to undertake council tax consultation written at the time – and of which I was a co-author – identifies some positives: citizens were engaged by the referendums with turnouts equal to or higher than in local elections. | How did things work out? A report about how to undertake council tax consultation written at the time – and of which I was a co-author – identifies some positives: citizens were engaged by the referendums with turnouts equal to or higher than in local elections. |
| The lowest tax option was not always preferred, and the consultations generally had the effect of engaging sections of the public in a debate about public services. The biggest downside was the cost involved in running a referendum. Moreover, the political outcomes can be messy. If a consensus emerges for an increase it can help to build support for saving services, but if the result shows a divided locality, it can make decision-making even harder. | The lowest tax option was not always preferred, and the consultations generally had the effect of engaging sections of the public in a debate about public services. The biggest downside was the cost involved in running a referendum. Moreover, the political outcomes can be messy. If a consensus emerges for an increase it can help to build support for saving services, but if the result shows a divided locality, it can make decision-making even harder. |
| 2. Use interactive budget tech | 2. Use interactive budget tech |
| The second option is a product of the availability of new technology. Councils are trialling a budget simulator tool which offers a different form of consultation. The tool is interactive, people using it are forced to make tough choices, and they have a sense of the actual cash sums involved and the challenges facing local politicians and council officers. But participants can be channelled into an obvious “right” answer; the key decisions having already been made so citizens are merely endorsing them. And sitting at a screen ticking boxes is not mobilising or empowering. Why would the public want to join in this depressing exercise? | The second option is a product of the availability of new technology. Councils are trialling a budget simulator tool which offers a different form of consultation. The tool is interactive, people using it are forced to make tough choices, and they have a sense of the actual cash sums involved and the challenges facing local politicians and council officers. But participants can be channelled into an obvious “right” answer; the key decisions having already been made so citizens are merely endorsing them. And sitting at a screen ticking boxes is not mobilising or empowering. Why would the public want to join in this depressing exercise? |
| 3. Empower citizens | 3. Empower citizens |
| The third option is to find ways of bringing the resources and capacities of citizens into both the decision-making and implementation of service delivery; “co-production”,to use the jargon. This requires a council to be comfortable with giving up more control. But where it is willing to do so, it can be possible to construct a more deliberative, two-way dialogue with local people and organisations. | The third option is to find ways of bringing the resources and capacities of citizens into both the decision-making and implementation of service delivery; “co-production”,to use the jargon. This requires a council to be comfortable with giving up more control. But where it is willing to do so, it can be possible to construct a more deliberative, two-way dialogue with local people and organisations. |
| The ESRC research project Jam and Justice, based in Greater Manchester, is exploring how this can be done. Its pilot projects bring citizens and service providers together at both the neighbourhood and city-regional levels. For instance, by pooling their resources of local groups, health and social workers have shown they can help isolated older people in Stockport more effectively. Citizen organisations in other areas too are engaging in discussions about how to match more inclusive economic growth with more inclusive governance. | The ESRC research project Jam and Justice, based in Greater Manchester, is exploring how this can be done. Its pilot projects bring citizens and service providers together at both the neighbourhood and city-regional levels. For instance, by pooling their resources of local groups, health and social workers have shown they can help isolated older people in Stockport more effectively. Citizen organisations in other areas too are engaging in discussions about how to match more inclusive economic growth with more inclusive governance. |
| 4. Declare war on austerity | 4. Declare war on austerity |
| Here the engagement with citizens moves away from co-production and towards protest. Maybe Jeremy Corbyn-supporting activists in Labour areas will get into leadership positions and start to challenge (1980s-style) the need to balance budgets, and raise ideological objections to working with private or non-governmental providers? It is unclear, however, if Corbyn’s supporters have the sustained commitment or capacity for such action. | Here the engagement with citizens moves away from co-production and towards protest. Maybe Jeremy Corbyn-supporting activists in Labour areas will get into leadership positions and start to challenge (1980s-style) the need to balance budgets, and raise ideological objections to working with private or non-governmental providers? It is unclear, however, if Corbyn’s supporters have the sustained commitment or capacity for such action. |