In 1983, the Audit Commission was set up by the Conservatives. At one point in the 1990s, the Labour Party was pledged to abolish the organisation and the Conservatives opposed this idea. Now the coalition government is to scrap the Audit Commission. Viewpoints can certainly change and switch between the different political parties.
The Audit Commission had a remit to improve the economy, efficiency and effectiveness of local government. This was a laudable objective supported by audit and inspection processes together with value for money studies. There is no doubt that local government has raised its game and markedly improved its performance. Large cashable savings have been generated for residents and for central government.
Part of the Conservative motivation in the 1980s was surely to address the high spending profligacy of some left-wing Labour councils of the time. There were instances of some local authorities refusing to set a budget in protest at central government’s ability to restrict their expenditure.
Ironically and beneficially, one of the Audit Commission’s most famous interventions was against Conservative-led Westminster City Council. Here we had flagship Conservative local government, covering the area of the central government legislators, engaged in the notorious “homes for votes” scandal. Council homes were being sold in such a way as to make Conservative majorities more likely in key wards. The practice was a form of gerrymandering and an indefensible use of public funds.
Over time, the Audit Commission increased its inspection in local government to include the CPA (Comprehensive Performance Assessment) and then the CAA (Comprehensive Area Assessment) regimes. It is easy to use the word ‘regime’ in this context and that says a lot about the Audit Commission’s emerging style as compared to the substance of its work. This might be where Eric Pickles MP, Secretary of State for Communities and Local Government, was coming from when he said that the Audit Commission had lost its way.
The Audit Commission adopted the thinking of its time, using targets and tick-boxes whose actual relevance could be questioned. Then there is something about the approach of public bodies charged with inspection work. Politicians are directly elected individuals with a mandate, however imperfect, from the people. Yet at times, I have felt profoundly spoken at by the Audit Commission and this was an irritating experience.
It is likely that in some parts of local government, there will be enthusiasm for the demise of the Audit Commission. I will not be celebrating myself. Some two thousand people will be losing their jobs and our thoughts will be with them as they seek a new future.
Beyond that, an independent look at the performance of local government has proved to be valuable to the communities that we serve. This is a capability that should be retained in some form to ensure that local government improvement is sustained in the future.
Councillor Bob Lanzer, Leader of Crawley Borough Council
18th August 2010