Communities and Local Government

• Cities and regions
• The Sub-National Review
• Frequently asked questions on the transition to the new Sub-National Review arrangements
• Funding and assets - frequently asked questions

Cities and regions

Funding and assets - frequently asked questions

• My region wants to move to new governance arrangements in April 2009. What functions will CLG fund in the financial year 2009-10?
• When will we know what funding will be available from 2010 onwards and when and to whom will guidance be issued?
• When will Regional Assemblies' wind-up costs, including any redundancy payments, be identified, and how will they be funded? Will there be a central fund to cover them?
• Current funding arrangements for Regional Assemblies do not allow for redundancy payment to be made from the public purse beyond the statutory minimum. Will this remain the case?
• How will Communities and Local Government ensure funds are in place to cover all pension liabilities and that they transfer with the staff? Will government cover the pension liabilities for local authorities?
• Can Government design new arrangements in a way that will enable those Regional Assemblies that are employing organisations to continue?
• Will Communities and Local Government give Assemblies the ability to carry forward funding from 2008-09 to 2009-10 to cover work on transition?
• Is there a process (and location) for the transfer of records, information, filing, and will this be centrally funded?
• Where will the policy support for the Leaders Boards come from? How will it be funded?

My region wants to move to new governance arrangements in April 2009. What functions will CLG fund in the financial year 2009-10?

Business Planning Guidance issued by Communities and Local Government sets out what functions it expects each region to undertake in 2009-10. The roles the guidance identifies are: Regional Planning Body (RPB); Regional Housing Board; Scrutiny of Regional Development Agencies Regional Economic Strategies; and regional strategic partnership work (including Regional Funding Advice). Any region wanting to move to new governance arrangements in April 2009 should discuss the implications of this move with their respective Government Office to ensure that the resultant regional structures and functions performed will be appropriate and acceptable. The current designation criteria for RPB's will apply to new governance arrangements until new legislation is in place.

When will we know what funding will be available from 2010 onwards and when and to whom will guidance be issued? 

When government announces funding for 2009-10 we will seek to give broad undertakings for 2010–11 although this will be dependent on the change management programmes which we have asked to be produced (see Who will lead on taking forward the transition process in the regions? under Transfer of functions) by March 2009.

When will Regional Assemblies' wind-up costs, including any redundancy payments, be identified, and how will they be funded? Will there be a central fund to cover them?

Most of the work undertaken by Regional Assemblies will still be undertaken in the future and therefore Government does not anticipate that there will be significant wind-up costs or redundancies. The identification of any such costs should be undertaken as part of the Change Management programme that regions will be undertaking in the coming months to prepare for the transition.  Some initial work on this has already been carried out. Once there is a clearer understanding of any likely actual costs arising decisions will be taken on funding them. The expectation is that any costs will be funded from within existing budgets.

Current funding arrangements for Regional Assemblies do not allow for redundancy payment to be made from the public purse beyond the statutory minimum. Will this remain the case?

The funding agreement for Regional Assemblies has always contained a clause which states that "Grant must not be claimed for any of the following … (e) payments for redundancy of staff in excess of the statutory minimum amount." The Government is not currently proposing to change this approach.

How will Communities and Local Government ensure funds are in place to cover all pension liabilities and that they transfer with the staff? Will government cover the pension liabilities for local authorities?

Pension provisions in contracts normally mean that the employer and employee are both paying contributions into a pension's scheme. These payments will have been made and thus pension liabilities will be covered. We will work with each of the Regional Assemblies to ensure that this is the case; particularly where there are members of staff for whom an additional pension liability may need to be paid . However, we do not anticipate there being very many cases like this.

Can Government design new arrangements in a way that will enable those Regional Assemblies that are employing organisations to continue?

Government will cease funding Regional Assemblies after March 2010. Decisions on the new arrangements are a matter for the region and an issue that will be considered in the production of the regional Change Management programme. It is feasible that the Regional Assembly could change into the Local Authority Leaders Board as has happened in the North West which would provide some continuity - but this is a matter for the region.

Will Communities and Local Government give Assemblies the ability to carry forward funding from 2008-09 to 2009-10 to cover work on transition?

The presumption is that funding for 2008-09 would be used to meet the milestones set out in the business plan for each region during that year. Exceptional circumstances would have to be demonstrated as to why funding for 2008-09 has not been used in year and agreement to carry-over any funding obtained in advance from the GO and Communities and Local Government.

Is there a process (and location) for the transfer of records, information, filing, and will this be centrally funded?

This question should be addressed by regional partners in their Change Management programme for the region. There is no additional central funding available.

Where will the policy support for the Leaders Boards come from? How will it be funded?

Development of regional strategies will require close working between local authorities and the Regional Development Agency (RDA) in each region, at all levels, so local authorities will need to discuss and agree how policy support for Leaders Boards can be best structured to achieve this. Each region will wish to establish structures which best suit their overall arrangements. For example: in the North West, Assembly officials have already transferred to the new organisation 4NW and are working closely with Northwest Regional Development Agency (NWDA); in the North East, Assembly policy officials involved in strategy development have moved to work with those from the ONE. The overall aim should be to ensure effective integration of policies for the new regional strategy.

Local Authority Leaders Boards will receive funding to cover their work on the Regional Strategy (and also to cover continuing functions of the Assemblies). RDAs are also currently funded to produce the economic elements of the strategy. In future, it will be for the RDA and the Local Authority Leaders Board to decide between them how the work under the jointly agreed regional arrangements is resourced.