HC Deb 23 June 2000 vol 352 c310W
Mr. Norman

To ask the Secretary of State for the Environment, Transport and the Regions (1) what representations have been made to his Department on the compliance costs associated with the implementation of Best Value by local authorities; and what account he will take of such representations in deciding funding allocations for local authorities; [126757]

(2) what annual incremental costs he estimates will be incurred over the next five years by local authorities (a) on average and (b) in total in ensuring compliance with the Best Value programme. [126756]

Ms Armstrong

A minority of local authorities, mostly smaller District councils, have made direct representations about the estimated costs of implementing best value. In any particular case, the actual costs will depend on the existing performance of an authority and the arrangements that are already in place to secure year-on-year improvements. Such costs are being considered as part of the current Spending Review, as are the potential benefits arising from the fundamental reviews of performance which best value requires.

For 2000–01, the Government provided an additional £40 million to cover the costs of audit and inspection, £24.25 million of which was provided through Revenue Support Grant (RSG) and £15.75 million in grant to the Audit Commission. In setting their fees for 2000–01, the Audit Commission were asked by the Government to use grant to equalise the impact on different classes of authority, taking into account average predicted levels of RSG, and the Commission consulted on this basis.

Mr. Norman

To ask the Secretary of State for the Environment, Transport and the Regions what estimate his Department has made of the average start-up costs for a local authority of implementing Best Value. [126758]

Ms Armstrong

The start-up costs of best value will depend on local circumstances, including current levels of performance, as well as on authorities' own judgments about the management arrangements needed to support it. The Government will commission a programme of independent research later this year designed to measure the full impact of the new policy, including the subsequent savings on service provision and the improvements to service quality.