Healey - wellbeing power is forgotten tool in tough economic times

Councils have not used a legal power that could help their area ride out tough economic times, the Government warned today.

Local Government Minister John Healey, in a letter to council chiefs, urged them to consider using this "wellbeing power" to support their communities during the current economic climate.

New research published today highlights the low take-up of this legal power. The wellbeing power is a general power of competence permitting councils to do anything except raise tax to promote the economic, social and environmental wellbeing of their area. However, while nine out of ten councils are aware of the power, fewer than one in twelve are using it.

Mr Healey said the power could be a key tool for councils to ride out the economic downturn, using it, for example, as a legal cornerstone to invest in improvements to the local area, attracting new businesses and creating new jobs for residents.

As long as the council's actions are in the interest of local wellbeing, the power is available to enable a wide range of actions - saving councils time, avoiding complex legal procedures and cutting red tape. Given to councils in 2000, this "power of first resort" can save councils from checking through numerous different laws, and enables them to focus on achieving their goals, unless it's specifically prohibited by legislation.

Speaking at the County Council Networks conference today, John Healey said:

"Councils are already taking the lead helping their communities through these tough economic times. But they aren't making the most of this key tool.

"The wellbeing power could be used to tackle some of the very real problems faced by communities during this economic downturn. Some councils have shown the way, using it to drive investment in their area, get local people into jobs or make savings by delivering more efficient services. I'm determined that more of them see this potential. That's why I am writing to all councils today highlighting practical advice that will help them put this key tool to best use." 

A new document for councils has also been published today which gives countrywide examples of councils putting the Wellbeing power into practice:

• for example, Greenwich council used the power to tackle worklessness in their area, creating an employment agency in support of the existing community training agency
• in Torbay the council founded a Development Agency using the wellbeing power, which helped to boost tourism, economic development, and the regeneration of its harbour
• South Hams improved their waste disposal services by using the power to partner with the county council. They created a new, more efficient waste depot, which has delivered a more environmentally friendly, cost-effective service for the area
• Nottinghamshire County Council has reduced its carbon dioxide emissions by using the Wellbeing Power to create a non-profit renewable energy company
• a joint agreement between North Tyneside and Newcastle City Council was facilitated by the Wellbeing power and provided a whole new street lighting infrastructure. The move helped to regenerate the local area, restoring civic pride, improving house prices, attracting new businesses and reducing crime
• London Borough of Newham used the Wellbeing power as an opportunity to invest in a partnership project with the local PCT. The Local Finance Improvement Trust they created will build new premises and provide social care services in three London authorities
• using the Wellbeing power the Royal Borough of Kensington and Chelsea improved the safety of their local area. The council funded the employment of fifteen additional Community Support Officers to provide more uniformed presence on the streets, contributing to reduced street crime
• Wychavon District Council used the wellbeing power to take a main role in the development of a community hospital and medical centre for their local PCT
• in Wakefield, families living on an estate blighted by crime and drug-abuse were given a lifeline by the wellbeing power. It allowed the houses to be bought by the Council without a lengthy Compulsory Purchase Order process. The families were able to move away from the area and get a fair price for their homes - and the Council was free to redevelop the estate.

Notes

1. The two reports were published today by the Department for Communities and Local Government. The findings and recommendations in the reports are those of the authors and do not necessarily represent the views or proposed policies of Communities and Local Government.

2. The document Evaluation of the take-up and use of the Well-Being Power finds that the use of the Well Being Power was limited over the life of the evaluation as local authorities had a tendency to use more specific powers to achieve their goals. While lawyers played a critical role in encouraging or discouraging use of the Well Being Power, awareness and understanding was highest amongst local authority corporate officers and executive members and lowest amongst partners and community and voluntary sector representatives. Different factors regarding take-up included the capacity and capability of the local authority and the strength of local partnership relationships.

3. The document Practical use of the Well-Being Power sets out how the Power has been used, suggests ways to promote creative use, and points to further information source. It features nine case studies in relation to: social housing; a Development Agency; a waste transfer station; wood-heat technology in schools; setting up an employment agency; street lighting; formalising partnership arrangements with a PCT; community policing; and a Community Hospital and medical centre.

4. Three reports providing more detailed findings on the Wellbeing Power will be published simultaneously on the University of Birmingham and University of West England websites.

5. The Well Being Power was introduced in the Local Government Act 2000 to increase local authorities' capability to act on behalf of their areas. It allows principal local authorities in England and Wales to do anything they consider likely to promote the economic, social and environmental well-being of their area unless explicitly prohibited elsewhere in legislation.

6. The power has since been extended to eligible Parish Councils by last year's Local Government and Public Involvement in Health Act. A survey by Aberystwyth University found that 75 per cent of parish and town councils were expecting to make use of the wellbeing power, once it is in operation. Secondary legislation is being drawn up, in order to bring it into operation later in 2008. Any parish or town council can decide to use the power, if it meets criteria that are currently being finalised.