The government is stepping up its capacity to carry out Best Value inspections and interventions at local authorities, including combined authorities, that are failing to fulfil their statutory duty to secure continuous improvement in economy, efficiency and effectiveness.
Deputy Prime Minister Angela Rayner’s Ministry of Housing, Communities and Local Government (MHCLG) is looking to expand its pool of Best Value Commissioners who are sent into local authorities deemed or suspected of failing to meet their Best Value Duty under the 1999 Local Government Act.
The MHCLG said: “We expect the highest standards of local government – with central government playing its part as a responsible steward. Local councils must be fit, legal and decent.”
The Government is currently carrying out seven interventions and two inspections and has previously conducted three interventions and three inspections. None of these is in the North East.
Tees Valley Review
Tees Valley Combined Authority (TVCA) underwent an independent review under a different procedure in 2023 focusing on South Tees Development Corporation (STDC) and the Teesworks regeneration site.
The review made 28 recommendations and the TVCA cabinet agreed an action plan in September 2024 to implement them. The Local Government Association, the Centre for Governance and Scrutiny and the Chartered Institute of Public Finance and Accountancy are working with TVCA to make the necessary improvements.
Whether this is enough to satisfy ministers is unknown. Rayner has still not responded to a recommendation by the House of Commons Business and Trade Committee last June to order an investigation by the National Audit Office (NAO).
Culture and governance
A Best Value inspection could be an alternative as unlike an NAO investigation it would not require the agreement of Tees Valley Mayor Lord Ben Houchen. Strengthening the pool of Best Value Commissioners could be a step towards doing that.
According to an MHCLG paper published in 2020 and now re-issued: “Based on our experience of supporting and, sometimes, intervening in local authorities experiencing difficulties, it has become clear that culture and governance at a local authority is key to its success or failure.”
It adds: “The culture of a local authority is determined by its shared values and beliefs, how decisions are made, as well as how elected members and officers behave, interact and carry out their roles.
“Governance refers to the ways in which an organisation is governed and to what purpose. It encapsulates policies, procedures, the way in which decisions are made and how decision-makers are held to account.”
Suitably qualified candidates to join the pool of Best Value Commissioners are being asked to apply to the MHCLG by 14 March.
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