Cabinet 28 November 2011 Agenda Item No______13_______ THE COUNCIL’S APPROACH TO LOCALISM AND THE ESTABLISHMENT OF A BIG SOCIETY FUND Summary: This report details the Council’s new approach to Localism, makes recommendations in relation to the Local Strategic Partnership and establishes the principle of the Big Society Fund. Conclusions: The Council has positioned itself to ensure that it is able to take advantage of the legislative changes incorporated within the Localism Bill for the benefit of communities within North Norfolk. Streamlined partnership working combined with new arrangements for the return of 50% of the second homes council tax funding will allow communities within North Norfolk to benefit for the first time from a Big Society Fund of almost £700,000 per annum. This fund will support projects that communities want and where they will make a difference to the economic and social well-being of the area, and not linked to meeting top down government targets. This is an exciting new fund that will help reinvigorate our communities by giving people the opportunity to get involved in real projects thereby strengthening our civic society. Recommendations: It is recommended that; • Cabinet support the proposal for North Norfolk Community Partnership to be reconfigured from being a formal committee to become a standing conference with an annual summit for the strategic partners operating in North Norfolk and a 6 monthly review meeting. • The Council support Holt Town Council in becoming a pilot for a neighbourhood plan subject to the funding bid being accepted. • A Big Society fund is established from the return of the second home council tax income and any uncommitted funds from this year allocated to this fund through the establishment of an earmarked reserve. • The principles of the Big Society fund are agreed as outlined within Appendix L and a policy developed Cabinet 28 November 2011 which will provide more detail on the operation of the grant scheme. • Cabinet member(s): Cllr Trevor Ivory The fund is split between revenue and capital based upon an indicative allocation of £500,000 for revenue and £200,000 for capital projects. Ward(s) affected: All Contact Officer, telephone number, and e-mail: Sheila Oxtoby,Sheila.oxtoby@northnorfolk.gov.uk 1. Introduction 1.1 The Council’s new approach to localism is defined within the Corporate Plan and is one of the key priorities over the next four years. The concept of localism is at the heart of the growth agenda and this in turn will be intrinsically linked to the Council’s future finances. Increased housing and economic growth are key priorities and yet are often seen to be in conflict with local community wishes. Therefore our approach to localism will give communities the opportunity to understand and debate their future needs, develop a shared vision for the future, and collectively agree actions. Our own asset portfolio, and that of the wider public sector, can also be integral to the enhancement of an area and we need to ensure that public sector assets are, as far as possible, maximising the social and economic prospects of a town or parish. 1.2 The contribution made by the public sector in shaping communities has been widely debated. However, localism should signify a further shift in emphasis in the local authority’s role as community leader away from direct action towards enabling and facilitating change, which includes the way in which we view asset ownership and service delivery. 1.3 With this ethos driving a new agenda, this paper sets out a new approach to localism which will be taken forward with an understanding of the national economic context and alongside a new financial and planning framework operating at both the national and local level. 1.4 It explores our previous approach to community engagement and the relationship that we have with the Local Strategic Partnership, whilst reflecting on the policy changes and subsequent legislative changes that will follow in the Localism Bill. 1.5 Finally, whilst the Council wishes to see communities driving their own agendas, there will still be a need to support investment through the allocation of resources and investment in public sector assets. This paper therefore establishes a governance framework for the North Norfolk Big Society fund. 2. Background to Current Arrangements 2.1 In anticipation of the changes to be introduced through the Localism Bill, the Council issued a discussion document in December 2010 on community engagement. This led to some internal restructuring leading to the abolition of the then Communities Team and the creation of a smaller team bringing together coast, localities and property. Whilst Cabinet 28 November 2011 delivering an annual saving of £140,000 there was no clear steer established on how the Council would respond to a new and emerging agenda round devolution or an agreed approach to integrated coastal zone management. 2.2 At the same time, the Local Strategic Partnership commissioned a report to review the way in which the Council engages with local area partnerships. Whilst these have provided a mechanism for the voluntary and community sectors to work alongside town and parish councils to positively address local issues, they have been less successful in achieving the intended independent financial sustainability. 2.3 In addition to LAPs, in Wells-next-the-Sea, Holt and North Walsham the Council has supported the establishment of stakeholder or partnership boards which have brought together key representatives within the town to agree a common vision and set of actions or interventions required to make economic, environmental and social improvements. For Wells-next-the-Sea and North Walsham, action plans have been formally approved by the Council with some dedicated resource provided through the Ideas into Actions fund as currently managed by the Local Strategic Partnership. The purpose of agreeing the actions ensures a formal ‘buy in’ from each of the respective organisations that have a role to play in improving the prospects of a community and providing a strong collective voice in influencing decisions. Investment confidence in market towns often comes from a sense of well-being and pride which requires genuine community leadership and a clear mandate. 2.4 In Wells, the Maltings Trust is an example of a new community group being set up to support the local tourist economy, increase visitor spend and improve community and youth activities. NNDC has been a key player, working to support and enable the project to go forward including a renegotiation of the lease for the Maltings. The Wells Area partnership has now taken the decision to dissolve and transfer its assets to the Trust to improve the prospects of a sustainable community trust based around a flagship project and an important asset. 2.5 In future, it will be for local community groups to develop the social capital to deliver this agenda, and our role will be to foster community organisations that are fit-for-purpose and in which public, private and voluntary sector assets can be vested to achieve mutually beneficial outcomes. 2.6 It is therefore timely to revisit the current arrangements and question whether they are sustainable during a period of public sector expenditure cuts. The administrative arrangements for both the Local Strategic Partnership and the Local Area Partnerships are currently funded through the raising of council tax, either directly or through the return of the second homes council tax income from the County Council on a 50% sharing arrangement. 2.7 These arrangements also need to be considered alongside a national shift in policy, which amongst other things, no longer requires the production of a Sustainable Community Strategy, and has a commitment to reduced bureaucracy and a bottom-up approach to priority setting. It provides for greater flexibility and empowers parish and town councils to provide services and plan their local areas. 3. The Local Strategic Partnership 3.1 The Local Strategic Partnership (LSP) brings together key partners operating across North Norfolk including representatives from the Norfolk Constabulary, Norfolk Primary Care Trust, County Council, Victory Housing, Business Forum and the Rural Community Council. The LSP has met bi-monthly as a non-constituted body but with agreed terms of reference. Cabinet 28 November 2011 3.2 Through an agreement with the County Council, 50% of their share of the discretionary element of the second homes council tax was returned to the District to support the Sustainable Community Strategy. This was called the Ideas into Action fund and has been used to support a range of projects and community infrastructure. 3.3 The following table shows the funding currently committed from the Ideas into Actions fund as agreed previously by the North Norfolk Community Partnership, the Local Strategic Partnership. LSP funded area partnerships (local area partnerships) Service Level Agreement with Voluntary Norfolk North Norfolk Business Forum North Norfolk Community Foundation Information, Advice and Guidance (IAG project) Community Projects Management and Administration North Walsham Leadership of Place Total cost £ Comments 2012/13 Committed Budget £ 2011/12 Committ ed Budget 267,000 0 No ongoing commitments 65,000 0 No ongoing commitments 20,000 25,000 20,000 25,000 70,000 0 53,000 30,000 50,000 0 550,000 75,000 No ongoing commitments 3.4 The aims and objectives for each of these arrangements are explained in more detail below. 3.4.1 Local area partnerships A network of local partnerships across the District based upon the seven market towns bringing together community representatives with democratic, voluntary and business representation for the town and their hinterland. Area partnerships were designed to provide a way of pooling resources between partners and other agencies, avoiding duplication and enriching services either through joint-working or influence. The funding is used to sustain each partnership and employ a co-ordinator. 3.4.2 Service Level Agreement with Voluntary Norfolk – VCS Together Through a Service Level Agreement, Voluntary Norfolk has been responsible for delivering a project within North Norfolk to; o Monitor services provided locally by third sector groups and identify where gaps and possible areas of overlap may be; o Support organisations to develop by sharing good practice and developing skills o Enable communication and collaboration by encouraging groups to share resources and create more effective ways of working Cabinet 28 November 2011 o Provide a structure to facilitate an accountable voice for the diverse views of local groups to be expressed Promote the representation of third sector organisations in local planning and policy decisions o The funding agreement for this project expires in March 2011. 3.4.3 North Norfolk Business Forum (NNBF) This is the core funding to support the administrative and governance arrangements for NNBF. 3.4.4 North Norfolk Community Fund The North Norfolk Community Fund has been operating through the Norfolk Community Foundation for 5 years. Currently there is a 2 year agreement to contribute £25,000 per annum in 2011/12 and 2012/13 to the NNCF who are then responsible for evaluating and processing small grant applications for voluntary and community organisations in North Norfolk. 3.4.5 IAG Project This is a project with a total budget of £180,000 and employing 4 staff, hosted by the District Council, to deliver advice, guidance and training to individuals who have been made redundant or who are unemployed as well as individuals seeking to set up their own business. Through this project, individuals can then go on to secure formal qualifications. There is no ongoing funding beyond April 2012 although £40,000 would be available as match funding from the Council’s own economic development budget to secure continuity. 3.4.6 Community Project Management This is a dedicated resource to support the development of community projects, particularly those stemming from visioning exercises with agreed action plans, hence the current emphasis on projects within Wells, Holt and North Walsham. 4. The Council’s Corporate Plan 2011 -2015 4.1 The increasing complexity of partnership working and establishment of quangos has led many to question the ‘added value’ of the organisations which have been established. However, it is clear that, with the right approach, engaging communities has tangible benefits in shaping the future of places in which people live. 4.2 The concept of a LSP has ongoing value in ensuring that at an organisational and strategic level there is an opportunity to enter into a dialogue on key emerging issues, the challenges and opportunities facing each organisation, and to share these with a wider audience including Town and Parish Councils. These relationships and a sharing of the understanding of key issues is essential as each organisation looks ahead and plans for the future. An annual summit would be an open and inclusive way of achieving this with a 6 monthly strategic meeting of key stakeholders. Cabinet 28 November 2011 4.3 The emerging structures at a District level through the health and well-being board, AntiSocial Behaviour Action Group and Business Forums will ensure ongoing dialogue between sectors dealing with a range of strategic and operational issues. 4.4 The Localism Bill introduced by the Coalition Government provides the impetus for local authorities to re-think how they engage with communities and to build on the democratic structures that exist across North Norfolk, embodied within 123 Parish and Town Councils. Where we see added value, these can be supplemented by voluntary Partnership or Stakeholder Boards which bring together the respective statutory and non-statutory bodies to identify and address community needs, taking a holistic and long-term view but with sufficient focus on practicalities to bring about change. 4.5 The Localism Bill provides the legislative framework within which we will seek to • Reform public services by devolving and empowering communities where appropriate to do so • Drive efficiencies through the rationalisation of public sector assets and service delivery • Promote the development of neighbourhood plans and maximise growth where there are clear benefits and it is welcomed 4.7 Reflecting these opportunities, the Council’s Corporate Plan 2011- 2015 makes the following commitments in placing localism at the heart of our agenda. 4.8 What we want to achieve Recognise the important role that Town and Parish Councils have as the democratic embodiment of their communities How we are going to achieve it Review the need for partnerships and other bodies that duplicate and potentially compete with local councils. Review all Council activities to identify whether some might be more effectively carried out by Town and Parish Councils. To respond positively to requests from Town and Parish councils to take over the running of services within their area. Cabinet 28 November 2011 What we want to achieve Encourage communities to develop their own vision for their future and help them to deliver it Encourage the growth of the Big Society within communities How we are going to achieve it Encourage the development of neighbourhood planning. Maximise the benefits that local communities receive from embracing growth. Review services and ensure that the Council’s activities are not competing inappropriately with or stifling alternative provision. Establish a community investment fund, to be known as The Big Society Fund to invest in local communities and strengthen civic society. 5. Future Projects 5.1 The Council is well-placed to embrace this new agenda and will build on the approach already taken in Wells, Holt and North Walsham. Emerging from this work will be dedicated projects, often with an economic focus, that the community support and wish to take forward with input from various statutory and non-statutory organisations including the District Council. The two currently being progressed with support from the District Council are; Wells Maltings Project North Walsham Leadership of Place Project 5.2 For North Walsham the Council is clear that it has a direct role to play in delivering certain projects and has identified capital funding to bring forward environmental improvements. However, it is intended that the wider ambitions of the town will be taken forward by a Development Trust, and the District Council is working closely with the Town Council to establish the correct governance for the projects moving forward. 5.3 Therefore we are looking for the democratic decision-making to take place within communities but we also recognise that to take forward complex schemes and deal with long standing issues of economic decline the Council will need to take a fresh approach and this may require a new set of skills. 5.4 Cabinet has already instigated a series of workshops to think creatively about how economic development, property and planning can work together to deliver these aspirations. 5.5 We are also being responsive in supporting communities in taking advantage of this new agenda, and piloting neighbourhood planning as a means to achieving the desired improvements. With the support of Holt Town Council this Council has submitted a bid for funding through the Neighbourhood Planning Front Runners Scheme to pilot a neighbourhood plan. Under this scheme, a grant of up to £20,000 will be made available to support successful bids. 5.6 Given the excellent work already commenced by the Holt Visioning Group, this would be an ideal opportunity to build upon this work and develop a neighbourhood plan. Cabinet 28 November 2011 6. Funding 6.1 The discretionary element of the second homes council tax charge, of approximately £1.835 million per annum is split between the County Council, Police and District in proportion to their precepted sums. The County Council sum of £1.39 million is currently distributed in the following way: • 50% returned to the District Local Strategic Partnership (LSP) • 25% allocated to the County infrastructure fund • 25% allocated to the County LSP 6.2 A new agreement has been reached between the County Council and all of the Norfolk District Councils to return 50% of the funding direct to the relevant District Council. There is therefore an annual budget of approximately £700,000 available to support the establishment of a Big Society Fund and the remainder of the allocation from the current year. It is recommended that an element of this budget is allocated to capital and capital receipts used to finance the capital grants budget. Different options for the administration of the scheme are being explored and will be the subject of a future report to Cabinet. 6.3 There is no ongoing funding commitment for the Information, Advice and Guidance project which has previously been funded through the Ideas into Acton fund. Match funding in the future will therefore need to be found from within the Council’s own resources and the total package of support available will be dependant upon securing contracts for the delivery of such services from third parties such as the Department for Works and Pensions. 6.4 The discretionary element of the business rate grants, for which there is an existing policy, should form part of the Big Society Fund. This will remove the need for the council to allocate £68,000 which is currently supported through its own budget.