Thinktank calls for planning, procurement and capacity reforms from next government
Localis has criticised the Labour Party and Conservative Party over their "common neglect of the need of local government for immediate capacity uplift" in an analysis of their manifestos.
The independent think tank's report, 'Betting the House,' also said that the next Government must focus on local government's most pressing challenges, which include planning, procurement, and capacity.
It said that local government has the potential to play a crucial role in overcoming the country's immediate challenges "and charting a course to national prosperity if an enabling policy and funding framework is put in place".
The think-tank said the planning system has encumbered housebuilding across the country, leaving supply to lag helplessly behind an ever-mounting demand and consequently forcing local authorities to fork out billions of pounds annually on reactive measures".
To fix this, reforming and rebalancing the planning system "must be seen as imperative for reasons both social and economic," Localis said.
The report also called for the next Government to address capacity gaps, overly complex bureaucracy and low investment relating to public sector contracts.
It said that although there has been a shift towards recognising the strategic potential of procurement, systemic issues like reduced capacity and restrictive bureaucracy persist.
"Enabling more proactivity in commercial contracting will be crucial for local growth," the report noted.
The report also highlighted capacity concerns, noting that austerity has created a major contraction in capacity for local authorities to engage in non-core service areas, "particularly as inflation and demographic pressures bite".
It said that workforce and capacity issues prevent local authorities from introducing new, effective models of public contracting, governance, and services.
On planning, the report highlighted Labour's manifesto commitment to a regional, strategic approach to planning and its emphasis on leveraging mayoral combined authorities for transformation with better resources and powers. It also noted that Labour has committed to appointing 300 additional planning officers and integrating AI for efficiency, while proposing to release some green belt land for development under strict guidelines.
The Conservative Party manifesto included "little in the way of provision for strategic planning," but its pledges focus on urban development and the use of the Infrastructure Levy to support local infrastructure and affordable housing, the report said.
The report also welcomed the Conservatives' spotlight on communities, "particularly in terms of support for community housing schemes, community engagement for large scale regeneration projects, and extension of the Community Ownership Fund".
On capacity issues, the report noted that Labour has promised stronger obligations for affordable housing and sustainability standards.
The Conservative manifesto meanwhile introduces measures like reform of the Infrastructure Levy but its proposals risk criticism for potentially burdening local authorities and affordable housing providers, according to the report.
Analysing pledges relating to procurement, Localis found that both manifestos were "sparse" on public contract and procurement details.
According to the report, the Conservative party manifesto "presents an inadequate response to the entrenched capacity issues facing local government," and the proposed measures "fail to address the structural flaws that continue to hinder effective governance and public service delivery".
The Labour manifesto meanwhile outlines "several relevant initiatives" aimed at improving capacity, but proposals remain "frustratingly vague and there is nothing on the kind of capital injection necessary for adequately addressing the issues," the report said.
Localis chief executive Jonathan Werran said: "Both Conservative and Labour Party manifestos reflect distinct approaches to governance and the role of local authorities but share a common neglect of the need of local Government for immediate capacity uplift.
"Restoring local capacity will be crucial for public satisfaction and restoring effective governance and a capable local state in the next parliament.
"While Labour's planning proposals are the more comprehensive and strategic in intent of the two, their success ultimately depends on overcoming long-standing and well understood implementation challenges."
Adam Carey
