INTRODUCTION
Guide to the guidelinesThis guide draws on the experience of councils and practitioners in local government to research and identify different ways to consult local people over council tax and budget issues.
In many respects it is obvious why people should be consulted over tax and budget matters. As a report, published by the then DETR, noted in its title – from the viewpoint of the public “It is our money anyway”[1]. In short, people have a right to be consulted about the way public money is spent since collective decisions and priorities are being made on their behalf in respect of such spending. Chapter 1 explores the arguments for extending consultation over budget issues. It notes that although councils are ‘market leaders’ when it comes to consultation in general they have been a little more reticent when it comes to consulting over local budget issues. In the research (see Annex 1 for details) we conducted in preparing these guidelines we found some good examples of consultation over local finance. But even those who have done most to consult with their public often felt they could, or should, do more. The guidelines take up that theme and urge councils to adopt a more strategic and comprehensive approach to their consultation, bearing in mind local circumstances and differences.
Chapter 2 addresses a number of issues that came up during the case study visits, where people identified obstacles to effective consultation over budget issues. We note that these obstacles are not insignificant. For example, it is hard to get the right balance between providing people with the information and environment in which they can make choices that are meaningful and not overloading them with material. It is also important to avoid giving the impression that they are being manipulated into seeing things the council’s way. There are other dilemmas as well, such as the timing of consultation and the complexities of local finance in a multi-tier system. The chapter argues that each of the difficulties identified can be overcome at least to some degree.
Chapter 3 sets out the bare bones of a more strategic and comprehensive approach to consultation. Drawing on our work with councils and their ambitions to do consultation better in the future, we lay out a broad set of strategic issues that, if addressed in a systematic fashion, would enable all of local government to think through its approach to these issues more effectively. We are not suggesting a series of steps that all councils should follow slavishly in order to achieve some vision of perfect participation. Rather our aim is to set a series of issues and questions that we think that you will need to confront if you want to improve your approach to consulting over budgets. The aim is to develop a framework in which you can make choices to suit local circumstances.
Chapter 4 looks at the issue of communication, a vital ingredient in any consultation strategy and one with a particular resonance in the case of consulting over local finance. Communicating over budgets and complex financial issues is not easy but we identify some of the general steps that can be taken to improve your communication strategy.
Chapter 5 looks at how to get the general public and stakeholders already connected to the local authority involved in deliberation and reflection over budget issues. We identify three broad approaches that are complementary and involve extending by degrees the circle of those who are consulted. The first approach we have seen councils take is getting core stakeholders in the voluntary and community sector involved in the finance debate. The second approach is committed to getting beyond key stakeholders to ‘ordinary’ members of the public. The aim here is to enhance the legitimacy of decisions over finance. Third we identify ways to connect with hard-to-reach groups in the community: people who usually stay away from or feel uninvited to active involvement in consultation. The chapter gives detailed descriptions of the practice of various local authorities and details a set of strengths and weaknesses associated with a range of methods of consultation.
Chapter 6 examines the practice of those councils that have put the decision over a budget and associated council tax level to the public by way of a referendum. The choice given to the public itself of course reflects the prior political choices made by the council and as a method of decision making it requires the strongest level of political leadership and ownership to bring it to successful fruition. Referenda are also relatively expensive to run so they should be used only when a significant choice is being put to the public. This method can, however, promote a real sense of dialogue and involvement with the public over budget issues.
Chapter 7 brings the guidelines to a conclusion by noting that consultation is a complement to, not a replacement for, representative democracy. Even in the case of referenda over budgets, elected representatives rightly set the terms of the choices made by the public. Nothing in the guidelines propose that councillors and their officer advisers will not be central to deciding the councils’ options and priorities. Interpreting the outcomes of public consultation is part of the challenge any council faces and this final chapter offers some guidance on these issues. Given the complexity of what is at stake and the diverse layers of involvement from the public, stakeholders and others there is a vital need to feedback results of consultation exercises and wider budget outcomes to the public. The chapter concludes by arguing that a sustained commitment to participation is the key to success. Building up people’s sense that they can be involved is a challenge but one that the best of local government is already meeting.
Throughout this report, we provide examples of what local authorities are doing to seek the views of local taxpayers on the issue of council tax. You may find these illustrations helpful in considering how to approach this challenge. As noted earlier, we are not suggesting models or steps that every council should follow when consulting on council tax. Rather, we are setting out different methods and issues that you can consider when designing your own approach to council tax consultation – an approach that suits your individual needs and circumstances.
[1] Liz Spencer and colleagues, “It is our money anyway”. Lessons learnt from giving the public a voice in local authority spending decisions, ISBN 1 85112 366 0 £25, DETR, 2000
Published 4 July 2002
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