The local government sector has a strong track record of delivering substantial value for money savings. Authorities are working to go further and are raising their ambition for efficiency. Both central and local government have identified more scope for increased efficiencies which will allow a further one percentage point to be added to the totals savings target in 2010-11 taking it to at least 4 per cent. This will generate an additional £600 million in savings across the sector. This money will be directly recycled within local authorities’ budgets to be put towards front line services and keeping council tax down.
Local authority efficiency will be measured annually by the national indicator for efficiency savings. The new comprehensive area assessment (CAA), introduced on 1 April 2009, will report on performance in each area against all the national indicators. The first CAA reports are expected to be published by the inspectorates in late November 2009.
The level of performance reward grant payable will be determined by the average level of performance achieved across all designated targets in the local area agreement, subject to a minimum threshold of 60 per cent. At this stage it is not possible to determine the precise impact on the level of reward payable of a local authority not meeting targets based upon national indicator 191. The impact will depend upon how far short of the target an area’s performance on NI 191 has actually fallen at the end of the LAA, how many designated targets were included in the LAA and the level of performance achieved across the other relevant targets.
Detailed guidance on the reward model has been published at: