Denham outlines plan to renew local democracy

New Communities and Local Government Secretary John Denham today pledged to re-examine the relationship between central and local government as part of the Government's drive to renew Britain's democracy and restore trust in the political system at every level.

Mr Denham, who was appointed to his new Cabinet position last Friday, wants the debate to focus on citizens not institutions and is committed to strengthen ways in which local people can shape their communities and improve public services.

The Prime Minister today set out his comprehensive plans for constitutional and political reform in order to revive public trust in the system.

As part of this programme, Mr Denham announced he will shortly consult on ideas for placing the relationship between central and local government on a stronger and clearer basis, including the option of new legislation, so that citizens can be sure that they have strong, trusted and responsive institutions.

John Denham said:

"As the Prime Minister has made clear democratic renewal cannot simply be limited to change at Westminster, this is an opportunity for us to look at the way in which communities are actively engaged right across the country.

"Every citizen has the right to shape the communities in which they live. Crucially that means the right to elect their local leaders, the right to have services that meet their needs and the means to demand action where change is needed. Strong local democracy is dependant on councils that are effective, responsive and accountable and well positioned to serve local people.

"If councils are to fulfil this role successfully we need to step back, put local government on a surer footing and move towards less central direction, clearer accountability and more freedom to adapt services in response to the voice of local people.

"The investment that has been delivered over the last ten years combined with the hard work and commitment of local government has already led to radical improvements in the quality and delivery of service. We have already overseen a major power shift from central to local government including a slashing of targets and red tape, new city regions and multi area agreements that mean local leaders have greater powers to determine economic priorities and more power for people to have a say over how local budgets are spent.

"Now is the time to set down more clearly the principles on which central and local government will operate to restore trust in political life."

Over the coming days and weeks the Communities and Local Government Secretary will explore whether and how best the relationship between central and local government can be put on a firmer, clearer basis. Consultation will commence on this shortly.

This will build on the unprecedented steps taken since 1997 to put more power into the hands of local government. Local authorities have gained significant powers, responsibilities and financial freedoms from Central Government to enable further devolution of decision-making to local communities.

The Central-Local Concordat signed in December 2007 established reciprocal rights and responsibilities of local and central government and a framework of principles for how central and local government work together to serve the public.

The Government has also:

• given councils greater financial flexibility by removing spending strings from billions of pounds funding meaning they are free to spend this as they see fit meeting the needs of their communities; and giving them the freedom and responsibility to decide for themselves how much (and where) to borrow and invest funds
• through Local Area Agreements reshaped the landscape in which councils operate - freeing them up to work with other local partners to better meet the needs of local communities
• announced two City-Region pilots which will give new powers to Greater Manchester and Leeds to 'unleash and unlock' new economic growth- real strategic powers handed down from Central Government so they can decide how best to increase more jobs, skills, housing and better infrastructure, in a way that reflects local economies and helps them to move beyond the downturn
• signed ten Multi-Area Agreements between neighbouring councils that have ensured that national policy is tailored to what is needed locally in areas covering employment, skills, transport, regeneration, housing and planning. A further wave of MAAs will be signed shortly
• announced plans for a new fund to encourage the setting up of at least 20 new young mayors across the country; published a new strategy for participatory budgeting, so more people have a say on how public money is spent; and launched a new Asset Transfer Unit, to support councils and other public bodies to transfer more buildings into community ownership.

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