National Association of Councils for Voluntary Service
Getting involved in local
area agreements
Guidance for local voluntary and community
organisations
July 2005
 Advancing local voluntary and community action
NACVS Arundel Court 177 Arundel Street Sheffield S1 2NU Tel 0114 278 6636 Fax 0114 278 7004 nacvs@nacvs.org.uk www.nacvs.org.uk
Registered charity no. 1001635 Company limited by guarantee Registered in England no. 2575206 Registered office as above
1
Introduction
Local area agreements (LAAs) are central to the Government’s agenda for local
services as set out in the 10-year vision for local government and a host of
subsequent related publications under the banner of local:vision1. LAAs were first
implemented in 20 pilot areas and a second wave of 66 was announced in June
2005. The programme will be ‘rolled out’ across England by 2007.
The Improvement and Development Agency for Local Government (IDeA) has
been working with NACVS and Urban Forum to assess the success of the initial
20 pilot LAAs in involving the voluntary and community sector (VCS) and to make
recommendations for the future. Our findings are available on the IDeA website2.
The purpose of this guide is to offer an insight into why and how the local VCS
should get involved in LAAs. It draws on the findings of the IDeA report but is
much more focused on the practical implications for the VCS. We consider, in
particular, the inclusion of the local public service agreements as the reward
element of LAAs and suggest how the VCS might benefit.
This guide will be updated from time to time to ensure that the local VCS is kept
up to date with this emerging agenda.
2
What is a local area agreement?
Local area agreements have been introduced with the intention of improving coordination between local authorities, the local agencies of central government –
such as Primary Care Trusts, Police and Job Centre Plus – and their partners to
plan and provide the very best services for local people. The Government has
made it clear that this means they must “empower and encourage
representatives of the voluntary, community and business sectors to be
involved3”.
The LAA should be agreed by the local strategic partnership (LSP) and in most
cases will focus around four blocks of central government funding that flows into
the area:

children and young people;

safer and stronger communities;

healthier communities and older people;
 economic development and enterprise.
Some areas will implement a single pot model, which enables the LSP to allocate
resources as it sees fit, irrespective of the original funding stream.
1
See http://www.odpm.gov.uk/stellent/groups/odpm_localgov/documents/divisionhomepage/029981.hcsp
Making it work – voluntary and community sector involvement in local area agreements, IDeA, June
2005 http://www.idea-knowledge.gov.uk/idk/core/page.do?pageId=777800
3 Local Area Agreements: a prospectus, Office of the Deputy Prime Minister (ODPM), July 2004, p15
2
1
The overall objective is to improve services and ensure better outcomes for local
people, irrespective of which agency delivers the service. The Government sees
LAAs as a means to:

focus on outcomes agreed and shared by all LSP partners;

simplify the number of funding streams from central government;

reduce bureaucracy and cut costs;

join up public services more effectively;

allow greater flexibility for local solutions to match local circumstances;

devolve decision-making to local people.
The crucial role of the VCS is set out in Local Area Agreement Guidance, which
states that local authorities should ensure the involvement of the VCS to “identify,
shape and deliver” the services included in the LAA. Each LAA should include a
‘statement of involvement’, which sets out how the VCS is involved in the
agreement and how the link is made with initiatives such as ChangeUp and Firm
Foundations.
The obvious place to start to design the local process for involving the VCS is the
Compact4 and the proposed Compact Plus5. Partners and stakeholders are
already signed up (approximately 70% of local areas have published a Local
Compact between the council/LSP and the VCS). The national Compact applies
to Government at central and regional level and to non-departmental public
bodies. So it already stands as a statement of shared principles and
undertakings, based on mutual respect, quality services, independence,
accountability and joint working. Whilst the effectiveness of the local Compact is
still largely untested, the LAA process is an opportunity to embed the approach
and demonstrate the value.
3
Local public service agreements
Local public service agreements (LPSAs) are now the ‘reward element’ of the
LAA and provide an opportunity, both through pump priming and direct reward, to
resource improved VCS engagement. It is also important to ensure that local
ChangeUp investment plans are taken into consideration as there may be
opportunities to align funding.
4
www.thecompact.org.uk
Strengthening Partnerships; Next Steps for Compact. Home Office/Active Communities, March 2005
(available at www.activecommunities.homeoffice.gov.uk)
5
2
4
Why get involved?
LAAs are evolving and the benefits and challenges of VCS involvement are still
emerging. However, even at this early stage it is evident that they represent an
opportunity to:

demonstrate the role and potential of the VCS within the shared agenda;

influence service design and delivery for the benefit of local communities,
particularly the most disadvantaged;

get VCS priorities on the local agenda;

access funding and support for community activities to improve quality of life;

strengthen infrastructure and streamline networks;

enhance collaboration between voluntary and community groups with
common interests and objectives.
The changes in funding for the Community Empowerment Networks and the
single Community Programme underline how important it is that the VCS gets
involved in LAAs and their reward element (previously LPSAs) and other similar
partnership mechanisms.6
The VCS has a key role; it could, for instance, contribute to the evaluation of how
local people are able to influence the service design and delivery and how they
access them. Whilst there is no new money specifically attached to the LAA, if
the VCS can demonstrate its value the LSP ought to make resources available
for new and existing activities. These could range from capacity building, service
delivery and providing a voice for local people and groups, perhaps through the
development of community empowerment like activities outside the
Neighbourhood Renewal Areas.
5
The role of the LSP
Partnership working is the key to a successful LAA so the role of the LSP is
crucial. It should not be seen as a single forum where people meet to discuss
strategy; rather it needs to become a network of activity focused on achieving
real and lasting improvements that can transform local communities. As the
forum for local decision making it is vital that the LSP can demonstrate:

it has produced a statement of involvement that is a real commitment to
community and VCS participation;

a coherent approach that links to other programmes and mainstream
budgets;

a clear understanding of and strategy for VCS engagement;
6
www.nacvs.org,uk - “Community Empowerment – Networks, Responsible Bodies and LSPs working
together” (NACVS 2005)
3

endorsement and delivery of compact; and

a robust performance management framework.
The crucial role of LSPs in the development and implementation of LAAs
presents a real opportunity for the VCS. Where the VCS have a strong voice on
the LSP it is a chance to enhance the sector’s role. Where the LSP has failed to
involve the VCS there is a compelling case for change and the LAA provides an
opportunity for the VCS to challenge existing practices with the Government
Office, which is charged with ensuring effective VCS involvement.
The LAA provides VCS local infrastructure organisations (LIOs) with an
opportunity to demonstrate the full extent of its expertise, from representing its
membership to providing leadership and co-ordination across the local sector.
Participation in the LSP and the development of the LAA will also enable the LIO
to develop its links with the local community helping to improve the quality of life
for all citizens. It is an opportunity to put forward priorities, highlight their
contribution and experience of partnership and improve the democratic
accountability and inclusiveness of the LSP.
6
The role of the Government Office
The Government Office (GO) is responsible for overseeing the negotiations and
brokering the LAA, as well as monitoring agreements and providing support. It
will also decide what LSPs need to do in order to demonstrate that all appropriate
partners are involved in negotiations. The GO should make it clear to all partners
in advance of any local discussions that proper partnership working is of
fundamental importance to LAAs. It is essential that VCS representatives identify
the GO official with lead responsibility for their LAA and establish a working
relationship with them at an early stage. It may be advisable to arrange an early
meeting with the GO lead to find out how they see the VCS role. NACVS will be
holding discussions with the Regional VCS networks to see if they are able to coordinate this.
7
Statement of VCS involvement
The statement of involvement is an important element of the final LAA document.
It should reflect how the VCS and the wider community have been involved in the
development of the LAA and how they will be involved in its implementation.
The VCS should not only be involved in developing the practice that informs the
LAA and its statement of involvement of the VCS but in signing off the final
document. It might include:

how residents have been involved in identifying the local priorities for the
LAA;
4

how the voluntary and community sector were involved in the process of
drawing up and negotiating the LAA;

the scope of the VCS role in the final LAA;

how the VCS will benefit from and contribute to the LAA outcomes;

the links to the local strategy for community engagement and VCS
involvement, including investment in capacity building, community
development and the VCS infrastructure;

how the VCS will be involved in monitoring LAA activities;

how the VCS will be involved in the governance of the LAA.
The Government Office is responsible for overseeing this and all other aspects of
the LAA.
8
The balanced triangle
The Treasury cites evidence7 that community involvement in local partnerships
leads to:

the use of a wider range of funding sources;

the ability to co-ordinate service delivery across agencies, bringing initiatives
together and joining up activities, and reducing duplication; and

initiatives that are better at meeting local need.
The VCS role should be founded on the ‘balanced triangle’ of objectives 8 –
governance, service delivery and social capital. They are interdependent and
each should be seen as reinforcing and supporting the other and any programme
in which the VCS participates should include distinct objectives in these key
areas.
Social capital
Developing social capital is likely to improve the level of community participation
in the governance of local services, whoever delivers them. This means that local
people are able to influence the services that matter to them, where previously
they had little or no say in what went on.
Developing social capital is also an end in itself, increasing people’s confidence
and feeling of belonging and with a greater sense of community, neighbourhoods
become better places to live.
7
HM Treasury (2005). Exploring the role of the third sector in public service delivery and reform, HM
Treasury, London, p26
8
Gabriel Chanan, Searching for Solid Foundations, Community Involvement in Urban Policy, ODPM Sept
2003.
5
A key objective for the VCS must be to ensure that the disadvantaged citizens
and communities gain the confidence to speak up about their concerns so that
they can influence local outcomes.
Governance
Community representatives play a crucial role on LSPs but their role must be
augmented by wider community involvement. It is crucial to build a web of VCS
engagement at all levels so that the sector can influence the overall strategic
objectives for the area and the priorities for each of the LAA blocks.
Local infrastructure organisations such as the CVS and the Community
Empowerment Network should be full and active partners on the LSP. It is
equally important that the VCS is represented in specific discussions around the
four funding blocks by local groups with specialist knowledge, particularly those
working with the most disadvantaged communities in the area.
It is also important to get the respective roles of elected councillors and
community representatives agreed in order to avoid unnecessary tension and
confusion. In some areas councillors and community representatives have
successfully developed complementary roles. Local authorities and the VCS
should consider how they can agree effective and collaborative solutions that
reflect the local situation.
LAAs should take account of the whole range of participative structures, at area
and neighbourhood levels, and in thematic partnerships that feed into the LSP.
Successful collaboration between local authorities (and councillors) and the VCS
(and their representatives) exist in many areas and greater use needs to be
made of this good practice.
Service delivery
The Government has recognised that the VCS can bring a distinctive approach to
service delivery. As a result it is clear that there is a growing expectation that the
sector will become increasingly involved in public service delivery. The
Government has identified the VCS strengths as being:

a strong focus on the needs of service users;

knowledge and expertise to meet complex personal needs and tackle difficult
social issues;

an ability to be flexible and offer joined-up service delivery;

the capacity to build users’ trust; and
 the experience and independence to innovate.
There are resource barriers which prevent voluntary and community
organisations from taking on this role. Some find it difficult to find out about
6
contract opportunities for example. The Treasury has published guidance9 that
provides a useful checklist for effective VCS involvement in public service
delivery. It suggests a number of ways in which local public bodies can support
and encourage VCS participation in service delivery:

making grants available (e.g. to develop volunteering in a particular service
area; to support community capacity building; to try something innovative);

providing ‘full cost recovery’ (funding that covers the full costs of the activity
the organisation is being asked to carry out);

paying grants up front so the project can get started;

investing in infrastructure (for example, networks and facilities);

designing programmes that encourage large voluntary organisations to share
their resources with smaller more informal groups.
It is important for the VCS to ensure that its local statutory partners are aware of
this publication.
9
The options for engagement
Under the new arrangements the VCS can decide to restrict its involvement to
the non-reward element of the LAA, opting instead for consideration of how its
contribution might be resourced through the existing funds available to the LSP
partners as part of the LAA blocks. This would require much less hard evidence
to demonstrate success and would be a matter for local agreement at the LSP.
Alternatively the VCS may decide that it wishes to access the reward element
available if the stretch targets are reached. The rewards are greater, around
2.5% of the local authority’s budget, but there is a greater burden of evidence
required to show that the stretch target has been achieved.
10
The reward element
The final stage for an agreement on rewards is agreeing the level of performance
to be included in the target. This performance is expected to exceed what would
otherwise have been expected at the same date i.e., to involve stretching beyond
existing targets which will have been included in the LAA. Reward is paid not for
improvement on current performance, such as the baseline, but for the extent to
which performance in the target period exceeds what would have been expected
had there been no 'stretch' target.
The process for negotiating and agreeing the reward element is complex and will
require detailed negotiations. As a result it is likely that tensions will arise
9
see: http://www.hm-treasury.gov.uk./media/34E/16/vcs_localpartnerships_210205.pdf
and http://www.hm-treasury.gov.uk./media/34C/0B/vcs_workingtogether_210205.pdf
7
between partners but as long as the focus remains on the benefits for local
people any difficulties can be resolved.
Before participating in the delivery of the ‘stretch’ targets the VCS should
consider:

the priorities for improving the council’s CPA;

whether local performance on floor targets is below the national average;

priorities drawn from the Community Strategy or Local Neighbourhood
Renewal Strategy and NRF improvement plans and other partners' plans and
strategies.
If the VCS can identify some key areas where it can help to raise achievement it
will stand a stronger chance of getting the agreement of partners at the LSP.
11
Sharing the reward element
It is important for the VCS to ensure that the outcomes have been endorsed at
the LSP and that adequate pump priming funding is available for investment in
VCS delivery. It is also important to use early discussions at the LSP as an
opportunity to make sure that there are robust arrangements in place to
apportion the reward grant equitably between the partners.
There is a substantial amount of funding attached to the reward element of the
LAA. A significant Pump Priming Grant (PPG) is available to support the delivery
of the ‘stretch’ targets agreed by the LSP. The PPG can be spent up front or over
the three years of the agreement. This means it can be used to get a new project
up and running or to increase the capacity of an existing programme, for example
by employing staff, to meet the ‘stretch’ target. The latest guidance explicitly
states that the Government does not mind how it is spent.
If the ‘stretch’ targets are met there is an additional Performance Reward Grant
(PRG) available. It is important to gain the commitment of all LSP partners,
especially the local authority, to a fair allocation of the PRG to all those, including
the VCS, who have contributed to the achievement of the ‘stretch’ target. It is
recommended that this is done during the negotiation phase of the LAA when the
‘stretch’ targets are being agreed.
See ‘the Havering experience’ in NACVS publication Engaging communities10 for
an example of where this has worked well.
10
http://www.nacvs.org.uk/nacvs/publications/docs/engagingcommsnacvsfinal.pdf
8
12
Measuring outcomes: performance targets and the VCS
LAAs are about making real improvements on the ground that local people will
recognise. One of the challenges of embedding community engagement into the
reward element of the LAA is to show how it contributes to the achievement of
real and lasting change.
In the Stronger and Safer Communities Fund: Implementation Guidance the
Government has a mandatory outcome:
“to increase the capacity of local communities so that people are
empowered to participate in local decision-making and are able to
influence service delivery”, p16
The document goes on to suggest a range of measures, such as greater
‘influence of the VCS on the LSP’ and increased ‘activity of the local VCS’ in
service delivery.
Measuring VCS and volunteering outcomes is notoriously difficult and has led to
many local public service agreements being delayed. NACVS has pressed the
Government to identify a method for measuring VCS outcomes that provide
evidence of meeting targets without being burdensome.
The Government will expect to see clear evidence that ‘stretch’ targets have
been achieved. It is likely that if local partners agree to adopt the measures set
out below they will be approved by the Government. The indications are that they
will agree evidence that is based on the Audit Commission’s Performance
Indicators (PIs)11. They are generally survey based and the LSP will need to
ensure that the necessary arrangements are in place for a baseline survey
against which progress can be measured.
It is essential that the LSP ensures that the proposed survey will provide the
accuracy required by the Government, this may require discussion with the GO
and possibly the ODPM. It is likely that concerns will relate to the sample size, to
ensure that it is an acceptable means of measuring performance against the
‘stretch’ targets. There will undoubtedly be a trade-off between accuracy and cost
and it is essential that this is established when the LAA is negotiated or potential
reward grant could be put at risk.
The VCS should ensure that LSP partners and the ODPM agree to fund a
baseline survey from the Pump Priming Grant. Follow up surveys can also be
funded by the Pump Priming Grant necessary to help the LSP track progress
towards the ‘stretch’ targets.
11
See: http://www.local-pi-library.gov.uk/library.asp
9
Community engagement and civil renewal
This can be measured by the number of people who feel that they can influence
decisions affecting their local area (PI LIB137 – see link at foot of page). For
example a 10% improvement reported by a sample survey is taken to mean that
10% more of the population feel that they can influence local decisions. The
survey methodology will need to be robust in order to secure payment of reward
grant.
Community cohesion
This can be measured by the number of people who feel that their local area is a
place where people from different backgrounds can get on well together (PI
LIB139 – see link).
Volunteering
The LAA should be able to include targets to increase the numbers of people
formally volunteering, as a proxy indicator for the strength of local communities.
Volunteering might be measured in either or both of two ways: by direct
measurement – numbers of school governors, lay magistrates etc., or by a
survey of people's reported volunteering – the number of people engaging in
(defined) formal volunteering (for a specified period). If this is to be measured by
survey, the indicator would be expressed as:
The number of people reporting that they have engaged in formal
volunteering for an average of two hours a week or more over the previous
year. The Government is likely to define formal volunteering as "giving
unpaid help through groups, clubs or organisations to benefit other people or
the environment".
Engagement by the VCS
Where the VCS is involved in delivering LAA targets on outcomes such as crime
reduction, there will usually be existing straightforward and accessible outcome
indicators which can be used to measure improvements over the period of the
LAA on a consistent basis.
10
Appendix A
VCS involvement: some things to think about:

Identify scope for intermediate outcomes to develop mechanisms for
community engagement.

Utilise LAA negotiations to tackle lack of capacity for engagement within the
local VCS.

Should partners develop specific LAA targets for the VCS or should the sector
have a role that cuts across all targets?

Be clear about the VCS offer and the cost and value of involvement.

Ensure that the local strategic partnership is ‘fit for purpose’ and has
ownership of the community strategy.

Be sure that agreed outcomes reflect an identified and verifiable need – the
LSP must have evidence for all targets.

Make sure you know the official at your Government Office responsible for
overseeing LAA negotiations.

Be aware of how successful your local authority is at meeting its ‘floor targets’
– you can find out here: http://www.neighbourhood.gov.uk/page.asp?id=21

Know your local authority’s CPA: http://www.auditcommission.gov.uk/cpa/index.asp?page=index.asp&area=hpcpa

What are the local priorities as set out in the community strategy?

Make sure that there are clear links between the LAA and the local plans for
ChangeUp investment.

Ensure appropriate VCS partners are involved at an early stage, particularly
where they have specialist knowledge.

Make sure the LSP reviews the capacity of VCS organisations and
communities to engage in the LAA process and makes resources available to
build that capacity where necessary. Is the LSP involved in a ChangeUp
consortium?

Do not simply rely on old established relationships; look to involve a wider
range of community groups and citizens, especially the most disadvantaged.
(Can you demonstrate your reach and accountability?)

Make use of government guidance to support the case for VCS involvement,
see:
Local Area Agreements: Advice Note 1
Local Area Agreements Guidance
Safer and Stronger Communities Fund: Implementation Guidance
http://www.odpm.gov.uk/stellent/groups/odpm_control/documents/contentserv
ertemplate/odpm_index.hcst?n=5899&l=3
11
The IDeA website, where you will find the LAA Toolkit:
http://www.idea-knowledge.gov.uk/idk/core/page.do?pageId=817524
If you are involved in the reward element (previously LPSA):

Be prepared in advance – develop proposals for the use of a pump priming
grant.

Agree reward grant allocation at an early stage to avoid unnecessary
disputes.
For further information contact:
Neil Cleeveley
Director of Information and Policy
NACVS
Arundel Court
177 Arundel Street
Sheffield
S1 2NU
Tel:
Fax:
Email:
0114 278 6636
0114 278 7004
neil@nacvs.org.uk
12