Second Generation Local Public Service Agreements: The reward element of Local Area Agreements A gui

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Second Generation Local Public Service
Agreements The reward element of Local Area
Agreements A guide for Local Strategic
Partnerships
Richard Anderson, Business Manager, Local
Government Liaison Branch 3 (Local Public Service
Agreements), Office of the Deputy Prime Minister
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THE BACKGROUND TO LOCAL PSAs (1)

• Local Public Service Agreements were designed as
  contracts between upper-tier Local Authorities
  (LAs) and Central Government and after a
  successful pilot scheme in 2000 with twenty
  authorities, were offered to all 150 upper-tier
  LAs in England
• Of the 150 eligible upper-tier Authorities, 147
  expressed interest in pursuing a Local PSA Round
  One Local PSAs have been signed with 144 Local
  Authorities
• They allowed the implementation of national PSAs
  at local level, and reward stretch performance in
  a number of targets (usually twelve) in key
  public service areas

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THE BACKGROUND TO LOCAL PSAs (2)

• Second Generation Local PSA scheme announced in
  late 2003 over 60 agreements are currently being
  negotiated with Central Departments 4 have been
  fully signed with more (14) due very soon
• Announcement in March 2005 that Second Generation
  Local PSAs will be merged with Local Area
  Agreements (LAAs) for future negotiations and
  re-labelled reward element of LAA - next 66
  agreements to be negotiated entirely by
  Government Offices

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HOW DO LOCAL PSAs/REWARD ELEMENTS WORK?

• Greater emphasis on partnership working - Local
  Authorities need to show that the priorities they
  identify as part of the wider LAA process reflect
  the needs of residents and are collated following
  consultation with local partners, such as LSPs,
  Primary Health Care Trusts, Fire and Police
  Authorities, Voluntary Sector
• Targets are negotiated in a number of key public
  service areas in line with the priorities
  identified through LAA consultation - the top
  dozen-or-so outcomes should form the basis of the
  reward element
• In return for stretching targets in the reward
  element, two grants are available (Pump Priming
  Grant to set up schemes and Performance Reward
  Grant to reward achievements), plus potential
  freedoms and flexibilities

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IDENTIFYING PRIORITIES (1)

• Upper-tier authority should work with local
  partners to identify key priorities suitable for
  improvement over three year delivery period
  (individual targets can run for longer if
  appropriate)
• Evidence should be drawn from a variety of
  sources, including LSPs, Community Plans,
  residents surveys and current performance data
  on existing indicators
• The priorities selected should show real
  benefits/outcomes for local people (Annex D of
  the LAA guidance is a good starting point, but
  not exhaustive)
• The upper-tier authority may need to take an
  overview on evidence to provide an overall
  balance for the locality (eg targets can have
  geographical or group focuses, but one area/group
  should not benefit at the expense of another)

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IDENTIFYING PRIORITIES (2)

• No mandatory targets for the reward element -
  choice of target is for authorities and partners
  to make (based on evidence identifying priorities
  for improvement locally)
• Initial presumption that the choice of targets
  made by authorities are the ones that should
  stand - but scope for Central Government to
  challenge, if this looks essential
• Scope for wide area targets between two or more
  neighbouring Local Authority areas - potentially
  most useful in Metropolitan/London areas, but not
  exclusively

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PUMP PRIMING GRANT

• payable at the start of the delivery period
  (following LAA sign-off) through the first
  tranche of LAA funding streams
• total amount is 750,000 plus 1 per head of
  population
• is not dependent on success - is non-returnable
  to Central Government
• designed to support projects which will help to
  kick-start improvements on reward element
  targets, but can be spent on any projects in the
  wider LAA process

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PERFORMANCE REWARD GRANT

• payable on success of Local Authority and
  partners on the targets selected for the reward
  element of LAA
• worth 2.5 of the net budget requirement of the
  upper-tier Local Authority (where applicable, the
  Net Budget Requirements of participating District
  Councils are also taken into account)
• attainment starts at 60 threshold and is
  proportionate to stretch
• can (and should) be shared amongst partners
  (amounts to be determined at local level)
• can be spent on projects as agreed by Local
  Authorities and their partners

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FREEDOMS AND FLEXIBILITIES

• Commitment by Central Government to reduce the
  number of administrative barriers encountered by
  Local Authorities and partners which hinder
  delivery of public service improvements
• Available in a large range of areas not
  restricted to the sphere of Local Area
  Agreements/Local Public Service Agreements (now
  the reward element of LAAs)
• Can look at short term wins as well as
  longer-term aims
• Ministers have recently reaffirmed their
  commitment towards agreement and delivery of
  freedoms and flexibilities

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Second Generation Local Public Service
Agreements The reward element of Local Area
Agreements A guide for Local Strategic
Partnerships
Richard Anderson, Business Manager, Local
Government Liaison Branch 3 (Local Public Service
Agreements), Office of the Deputy Prime Minister