Homelessness figures down 32 per cent

National statistics released today show that the number of households accepted as being owed a main homelessness duty is down 32 per cent from the same time last year.

The figures show that 10,650 households were accepted as homeless by local authorities between April to June 2009 - a 32 per cent reduction compared to the same quarter last year.

The statistics also show the largest year on year decrease in the number of households in temporary accommodation since 2004. There are now 60,230 households in temporary accommodation which is 19 per cent lower than this time last year, and down by around 40,000 since June 2004.

Homelessness Minister Ian Austin said:

"Backed by unprecedented Government investment, local authorities and their partners have made huge strides in reducing homelessness, with homelessness acceptances down by 32 per cent compared to this time last year.

"But we will not stop here, we want these sustained reductions to continue, which is why we are investing £220 million over three years in local authorities and the voluntary sector to tackle and prevent homelessness and have introduced a comprehensive range of support to help struggling homeowners avoid repossession.”

As part of the drive to further reduce homelessness, funding has also been announced for seven social entrepreneurs with bright business ideas to help tackle homelessness. Through the Communities and Local Government backed scheme, £10,000 will be allocated to market test the innovative ideas and to develop business models. These includes Candy Couture a beauty salon, Punch and Juicy a health food business and Suitcase Media which aims to provide a downloadable audio tour of London and is supported by British Telecom Global Services. The entrepreneurs are all receiving mentoring from established entrepreneurs including Nigel Kershaw at the Big Issue, The Trees Group and corporate partner PriceWaterhouseCoopers to help them develop their business plans.

Ian Austin said:

“Finding new and innovative ways of tackling homelessness is a key part of sustaining reductions in homelessness acceptances.

“The Sparklers programme is a new and exciting opportunity for homeless entrepreneurs to make their business ideas a reality and help themselves and other homeless people back into successful and independent life.”

Figures also released today, based on the results of local authority street counts, show a fall in the number of people sleeping rough with a total of 464 compared to 483 last year. A toolkit to help local authorities and the voluntary sector better tackle rough sleeping is also being published.

STRENGHTENING LOCAL GOVERNMENT TO DELIVER BETTER PUBLIC SERVICES

Councils in North Kent, the West Midlands and the West of England are today being given new freedoms and powers to work together to improve employment, skills, housing and transport in their regions, announced Communities Secretary John Denham.

The issues that affect people's lives like jobs and housing do not stop neatly at council boundaries. Councils increasingly need to join forces across their borders to mastermind regional solutions for getting more people back into work, raising skills levels, or developing new transport links. The Government is helping local authorities to work together to do this through new Multi-Area Agreements (MAAs).

Today councils are signing up to the next wave of MAAs - giving them new powers to devise their own plans and spend money as they see fit to tackle the most pressing issues in their regions and drive economic recovery.

The agreements will help thousands of people back into work, kick-start stalled housing developments, improve skills, and create first class transport links.

The latest wave of MAAs aim to:

• Reduce the number of people receiving out of work benefits;
• Increase the number of people with formal qualifications;
• Get work started again on stalled housing developments;
• Reducing carbon emissions by increasing the number of people who use public transport to get to and from work.

John Denham said:

"People live and work across different council boundaries and it is right that local authorities do the same. By working together on the pressing issues their regions face, councils can improve the way they deliver services and offer better value for money for the taxpayer.

"These agreements are giving councils new powers to help them work together to direct their spending and support where it is most needed and mastermind regional solutions.

"The priorities of local people will be at the heart of MAAs and the actions these councils are committing to today will help thousands of people back into work, and improve skills, public transport and housing.

"By joining forces through MAAs, councils will also avoid unnecessary duplication helping to ensure that taxpayers' money is being worked as hard as possible in the current climate."

Mr Denham today visited Dartford to sign the North Kent MAA with local council leaders. The ambitions for the area, which will be facilitated by the partnership, include supporting the delivery of 58,000 jobs and 52,000 new homes by 2026, and a major programme to cut carbon emissions by 16.7 per cent compared to levels in 2005 by making housing and transport more energy efficient.

As a result of their MAA, the North Kent partners will also now work with DfT and the Highways Agency to improve public transport so more people will use it to get to and from work. Changes to the local Fastrack bus service being considered include more dedicated bus lanes and providing electronic bus timetables directly into people's homes.

A further three MAAs covering Greater Blackpool (Fylde Coast), Liverpool and the Olympic host boroughs are expected to be signed in the coming weeks. This will take the number of council agreements to fifteen – covering more than a hundred councils.

Over the last decade, the Government has increasingly strengthened the powers councils have as part of a progressive devolution from Whitehall to the town hall. For example, councils now have three-year funding settlements, greater flexibility on how they spend money and fewer targets.

Local Authorities receive fresh cash injection to tackle extremism

Local authorities will receive a £7.5m funding boost to tackle Al-Qaeda influenced extremism, Communities Secretary John Denham announced today. The new funding will give them greater flexibility to support a broader range of activities to improve the effectiveness of the Prevent programme.

The extra funding backs new cross-Government guidance, also published today, which reflects feedback from local authorities and from Muslim communities. The Prevent programme, which aims to challenge any potential support for, or involvement in, Al-Qaeda type violence, has grown in strength and support over the past year.

The new guidance acknowledges that the effectiveness of the programme can be reduced if the labelling of local activities or their restriction solely to Muslim communities discourages some groups from becoming involved.

This additional funding will allow local authorities to do even more work to bring communities together to condemn violent extremism. It is in addition to existing funding to local authorities to deliver the Prevent strategy.

In recent weeks Ministers have made clear their determination to ensure that all sources of support for violent extremism are tackled consistently and effectively and further announcements will be made over the coming weeks.

Communities Secretary John Denham said:

“At the current time, the greatest terrorist threat remains that from Al-Qaeda linked violent extremism. The Prevent programme is key to our long-term success in tackling this threat.

“Prevent will only be fully effective if we respond to constructive criticisms which have come from local authorities and community organisations actively engaged in resisting violent extremism.

“It encourages local activities to avoid crude labels which discourage wide participation, and to see the promotion of activities which develop and sustain shared values - including understanding and respect for difference - as an important component of Prevent.

“Today's additional funding, and new guidance, supports this work. At the same time, we also need to tackle other potential support for violent extremism; including that from racist and fascist groups and over the coming weeks we will set out further proposals for doing so.”

Fire statistics UK 2007 published

The latest finalised fire statistics for England covering the 12-month period up to 31 December 2007 continue to show a fall in the total number of fires - down 14 per cent on the previous 12 month period.

Fire Statistics United Kingdom is published annually by Communities and Local Government and provides detailed finalised figures on fires, fire deaths and injuries, and false alarm calls.

- The United Kingdom Fire and Rescue Services attended 804,000 fire and false alarm incidents in the year ending December 2007 - an 8% decrease on the previous 12 months. In England, 630,000 incidents were attended (a 9% decrease)

- Total fires fell by 12% to 385,000 for the UK and 14% in England (to 296,000)

- Total fire deaths for the UK decreased by 10%, in line with the long term downward trend to 443, of which 267 were accidental dwelling fire deaths

- In England there were 339 fire deaths, down by 15%, of which there were 200 accidental dwelling fire deaths

- Primary fires in the UK fell by 10% to 144,000. Within this, dwelling fires fell by 6% to 53,000 and fires in other buildings - including workplaces and areas where people gather - were down by 6% to 31,000. Road vehicle fires fell by 14% to 51,000

- Primary fires in England fell by 10% to 118,000. Within this, dwelling fires fell by 6% to 42,000 and fires in other buildings were down by 7% to 26,000. Road vehicle fires fell by 14% to 42,000

- UK secondary fires fell by 14% to 231,000, while in England they fell by 16% to 172,000

- Attendances to UK false alarms decreased by 4% to 419,000. Within this there was a 12% fall (to 30,000) in malicious false alarms and a 1% fall (to 271,000) in false alarms due to apparatus

- In England, attendances at false alarms decreased by 5% to 334,000. Within this there was a 14% fall (to 22,000) in malicious false alarms and a 6% fall (to 217,000) in false alarms due to apparatus.

Fire Statistics United Kingdom is available on the Communities and Local Government website. Also on the website are the latest quarterly statistical monitors, Fire Statistics Monitor, which contains summary statistics, trends and analysis on a quarterly basis.

Audit Commission to probe council ‘boomerang bosses’

Communities Secretary John Denham today announced a review to examine how Town Hall chief officers are being allowed to walk off with big pay-offs after falling out with the council’s political leadership.

Today’s action has been prompted by a spate of cases where well-paid local authority executives have been dismissed with large severance payments - only to be appointed shortly afterwards to a senior position in another authority. Some executives appear to have parted company on the basis of a fall-out or personality clash with the council leader – not because of any shortcomings in their professional abilities.

Mr Denham has asked the Audit Commission, which is responsible for monitoring Local Authority finances, to look at the specific issue of so-called “boomerang bosses” and to establish whether the practices and procedures that govern this issue are sufficiently robust to protect the taxpayer and offer value for money.

He wants to be reassured that taxpayers’ money is not being used inappropriately.

John Denham said:

"It’s not acceptable for Town Hall chiefs and Council Leaders to agree expensive deals to part company for no justifiable reasons or just because they don't get on or they'd prefer to work with someone else.

“In the current climate every taxpayer’s pound must be made to go further and councils must show they are providing value for money with services, with salaries and with tough decisions about their corporate executives.”

Communities and Local Government has already acted on this wider issue by announcing in April that it would introduce legislation to bring in new remuneration disclosure rules for a range of public bodies including local authorities. This will legally require all councils to set out in their annual accounts from next year detailed information about pay, perks, pensions and pay-offs for senior officers. These new standards would bring councils up to the same high standards that are already required of civil servants and Government Ministers. Mr Denham has made it clear that he is prepared to take further action where necessary to tackle what he sees as the inappropriate use of taxpayers’ money.

Mr Denham is clear councils do not need wait until the new regulations come into force. The starting point for increasing transparency and building trust between individuals and their councils should be now.

Healey kickstarts work on 22,400 homes

Housing Minister John Healey today announced that 270 stalled development projects across the country have been shortlisted for a share of £925m which could help get building work on 22,400 homes back on track and create 20,000 jobs.

Every region has shortlisted projects and will benefit from this major cash injection, part of the Prime Minister’s Housing Pledge announced last month, that will help build the homes the country needs, help the country through the recession and help people into jobs. The projects have been identified by the Homes and Communities Agency through the Kickstart programme.

Mr Healey made clear that this support comes on tough terms. The Government expects almost half the money to be repaid within five years, over one third will go to housing associations and others to help them manage the affordable housing and less than one fifth (18%) consists of direct grant to support developers. Only developers who have accepted a realistic current market price for their land are eligible for Government investment.

All the projects will now go through a rigorous final assessment to determine which get the green light. Key to this will be their ability to start construction this year. But Mr Healey said he wanted to see the first builders back on site in a matter of weeks and will call on successful developers to pull out all the stops so construction can restart as quickly as possible.

Over 8,600 of these homes would be for affordable rent or sale, with two thirds built to a standard well above that required by building regulations helping to cut CO2 emissions and reduce energy bills for the families that live in them.

The Kickstart programme is a key part of the Government’s investment to help combat the recession. It is designed to unlock housebuilding sites currently unable to proceed and support construction of high quality mixed tenure housing developments. Kickstart was announced in this year’s Budget and then expanded last month as part of the Prime Minister’s Housing Pledge as a centrepiece of Building Britain’s Future.

This funding will be used to make projects that have been mothballed in the current economic climate viable and is only being provided where developers cannot get support from other sources. It will boost development funding available, reduce levels of risk associated with projects and help support demand from homebuyers through measures such as Homebuy Direct.

John Healey said:

"We’ve pledged to use the power of Government investment to help Britain through the recession. This billion pound Kickstart programme will get stalled building work back on track, create jobs and help build the quality homes we need.

"Today I’m announcing that 270 housing projects across the country are shortlisted line for a share of £925m. This could kickstart work on up to 22,400 homes and create 20,000 jobs on housebuilding sites that have been mothballed in the recession. Around 8,600 of these homes would be for low cost rent or low cost ownership and two thirds will be built to some of the toughest ever standards helping to reduce CO2 emissions.

"This is not a handout to developers. There are tough terms to this deal including repayment of loans within five years. And only builders who accept a realistic current market price for their land are eligible.

"I want to see builders back on these sites within weeks. So I will be calling on successful developers to pull out all the stops so construction can restart as quickly as possible."

Sir Bob Kerslake, Chief Executive of the Homes and Communities Agency, said:

"The response to our bidding process shows the level of appetite and capacity for development which is out there in the house building sector. Despite the economic downturn, demand for new homes remains and with some help, quality schemes can be unlocked, adding to new supply very quickly."

Shortlisted projects include:

• Stanion, an urban extension to Corby, which in the long term is planned to deliver 1,200 homes. Infrastructure is in place but housing development has stalled. There are three shortlisted bids from developers seeking to start development in this area – two of which are at Code Level 3 and two Building for Life Silver.
• An 82-home scheme in the Growth Point in Macclesfield, a high priority under the regional spatial strategy, has bid for funding to deliver a mixture of sale and low cost home ownership homes. The scheme is seeking to achieve Code for Sustainable homes Level 6.
• Crayford Town Hall in Bexley, a site which is no longer required by the local authority and is suitable for housing development. This could deliver up to 145 homes, in a mixture of sale, affordable rent and low cost home ownership. This is expected to achieve Code for Sustainable Homes Level 3 and Building for Life Silver.
• Alnwick in Northumberland, where the town centre scheme could bring forward up to 93 homes, a mixture of sale, social and intermediate rent – at Code Level 3 – that will also help to deliver town centre regeneration.
• A scheme in north Bristol (in the Growth Point) which could deliver up to 149 homes (a mixture of sale, social rent and low cost home ownership). It will provide considerable benefits to neighbouring communities in Patchway through investment in local community facilities, which includes a new district centre and primary school. The scheme is expected to be Building for Life Silver and Ecohomes Very Good.

All of these will be subject to due diligence to further test their deliverability, risk and financial position.

Region	Number of Projects	Amount of Investment (£’000s)	Number of homes (gross)
East of England	21	£55,171	Up to 1,675
East Midlands	32	£113,757	Up to 2,880
London	25	£171,221	Up to 2,981
North East	26	£82,006	Up to 1,721
North West	54	£134,877	Up to 3,764
South East	26	£109,892	Up to 2,326
South West	25	£65,792	Up to 2,121
West Midlands	35	£109,231	Up to 2,842
Yorkshire / Humber	26	£83,351	Up to 2,088
Total	270	£925,299	Up to 22,398

Mr Healey today also signalled a second wave of Kickstart funding, with a bidding round to start in September, and said that he is ready to back other projects to build thousands of further homes that otherwise would not be completed. Successful second wave projects will be announced later this year.

Building Britain's future: Healey unveils further boost for housing

Housing Minister John Healey today announced the release of funding to build 11,200 new homes, regenerate ten of the most deprived areas of the country and create 20,000 jobs in the building industry.

This boost follows hard on the heels of the Prime Minister’s commitment – set out in Building Britain’s Future - to invest an extra £1.5 billion towards building a total of 110,000 new affordable homes over the next two years.

Mr Healey announced a major £1.7 billion cash boost for ten local authorities in six regions under the housing private finance initiative (PFI) that will allow them to deliver 4,500 new or improved council homes as well as 1,600 new affordable rented homes.

The Minister also announced that in the last month through the Homes and Communities Agency he has released over £300 million to 50 Housing Associations across 119 local authority areas, to build a further 5,100 affordable homes. He also announced the allocation of £35 million to help regenerate almost 700 homes across 11 urban areas through the Housing Market Renewal Pathfinders programme.

Taken together the funding PFI and affordable housing funding will help to create around 20,000 building jobs.

Mr Healey also revealed that in the first quarter of this financial year alone, and despite the economic downturn, the Government is supporting the construction of 14,000 new affordable homes with over £430 million invested in those three months alone – double the investment of a year ago.

Housing Minister John Healey said:

“Building homes, creating jobs and lifting communities out of deprivation is a top priority for us in Government. I’m determined to pull out all the stops to see new homes built to meet our need for more housing in Britain.

“At a time when private house building has declined dramatically during the recession, government investment and action means more affordable homes are now being built more quickly and we are helping to keep the construction industry going. In fact we’ve doubled the investment in the homes we’re building through our affordable housing programme compared to this time last year.

“We have had to make some tough decisions across government about where we spend our money but we need to build more homes in Britain, and especially more homes available at rents people can afford. This is my top priority for this year and the next.

“The steps I’m announcing today put real momentum behind the Prime Minister’s Housing Pledge and I want to see work start on sites across the country within months.”

In a further boost to housing, Mr Healey confirmed today that there have been more than 300 bids from developers for the Government’s new Kickstart fund – first announced in the Budget and now topped up to £1 billion – to unlock stalled private sector developments. The Homes and Communities Agency is currently assessing bids and the successful projects will be announced later this month.

He also confirmed the Government has so far received expressions of interest from more than 70 local authorities across the country for the new council house building fund – first announced at the budget and now topped up to more than £350 million. The first successful bids for this will be announced in September.

As well as more high quality affordable homes, the Government wants to ensure a high quality service for the tenants who live in them. For this reason, Mr Healey today set out Government directions that will support the new social housing regulator, the Tenant Services Authority (TSA) to set high standards.

Mr Healey has today published for consultation a series of draft directions to the TSA covering rents, tenant empowerment and decent homes. The draft directions also respond to the possibility of negative RPI inflation later this year by providing a ‘floor’ of –2 per cent under rent increases in 2010/11, ensuring that Registered Social Landlords (RSLs) will not be obliged to reduce their rents by any more than two per cent next year. This strikes a balance between the interests of tenants, and the need to support investment in new affordable housing as well as improving existing homes and services.

The Housing Minister also confirmed today the Government’s decisions on priorities and efficiency savings to fund the Prime Minister’s commitment to housing as part of Building Britain’s Future. The Pledge commits an extra £1.5 billion to build 20,000 new affordable homes.

Up to £930 million towards the cost of the Pledge is contributed from other Departments, including Business, Innovation and Skills, Transport, Children, Schools and Families, Home Office and Health.

From CLG and the HCA funding will be switched from a number of capital spending programmes including the Growth Fund, the Decent Homes Arms Length Management Organisation (ALMO) Programme, and the Private Sector Renewal programme. However, in each of the areas affected the extra funding from the Housing Pledge gives the opportunity to bid for more money to build new homes. The remainder of the department’s contribution to the Housing Pledge will come from a tougher efficiency target for the HCA of 3% in operational efficiency savings this year plus the requirement to find £183 million through efficient and flexible management of its housing and regeneration programmes.

John Healey said that while this had involved some tough decisions, the direct impact on people and communities would be kept to a minimum. Savings on Growth Funds recognise that growth across the economy is slower than planned. Whilst the Government remains firmly committed to improving housing conditions for those in greatest need, completing the Decent Homes programme and continuing to invest £1bn in Private Sector Renewal.

Sir Bob Kerslake, chief executive of the Homes and Communities Agency, said:

“The funding for additional homes announced by Government this month will add substantially to our funding available for new affordable homes, helping local authorities to meet housing need in their areas and simultaneously helping house builders and RSLs to maintain new build activity. Government has had to make some difficult decisions as to where that funding should come from, based in part on the HCA’s existing wider programme, but there is a premium on new build activity and I am pleased that the sector has seen the benefit in putting an additional £1.5bn into housing delivery.”

Long term government commitment will turnaround achievements of young black men - Denham

Turning around underachievement of young Black men is a generational challenge that will be met by a long term commitment from Government, Communities Secretary John Denham, said today.

Recommendations from an independent REACH report made to Government two years ago identified the specific and unique barriers that are still holding back too many Black boys and young Black men.

Targeted Government measures to tackle inequality in criminal justice and education are improving the opportunities and life chances for Black boys and young Black men. But there is more to do.

The REACH programme of work, led by representatives from the Black community, set out clearly what further work is needed to tackle specific challenges and ensure no Black boys or young Black men face a penalty for being Black.

Responding to those specific challenges has been the focus of Government’s work in partnership with the community. A report published today shows the progress that has already been made and what further work is needed in three key areas:

More action in communities
Many organisations rooted in communities do an outstanding job of helping young Black boys and are able to support them far more effectively than any national initiative or external group. But they are often small in scale and resources. Guidance being published today will help these organisations to work together, access funding and have greater effect.

Tackling underachievement in schools
Achievement in schools is rising and attainment of Black boys is improving but there is still a gap that must be closed. REACH called for practical action to make stronger links between Black parents and schools and ensure that schools are responding to this challenge. Immediate actions taken by the Government have included getting more dads involved in education through new “Parent Support Advisor” roles, recruiting more Black school governors and as of September every school will be inspected on how well they are promoting equal opportunity and tackling discrimination as part of a normal Ofsted inspection.

Raising aims and aspirations
REACH concluded that when Black boys and Black young men looked around they felt there were few inspirational options available to them and called on Government to establish a national role modelling programme to address this. In 2008, 20 national role models were named who are working with hundreds of young Black boys and men across the country to broaden their horizons by showing them what they can aspire to.

Speaking at a REACH conference in London, John Denham said:

“Barack Obama taking office as America’s first ever African-American president was a turning point in racial equality. And, here in Britain, we can see examples of successful black men from all walks of life.

“However, it is unacceptable that young Black boys are still paying a price for simply being black. Turning around underachievement amongst young Black men is a generational challenge but one that none of us will shy away from. There are no quick fix solutions to what are long standing and complex problems.

“We have developed a good understanding of what the challenges are. Now, we in Government, schools, and crucially, communities need to step up our efforts to work together to deliver the solutions that will ensure young Black boys and men have the confidence, skills, opportunities and determination to succeed.”

Secretary of State for Children, Schools and Families, Ed Balls said:

"We are committed to helping all children to raise their aspirations, fulfil their potential and make Britain the best place to grow up in the world. Our efforts over the last five years have seen considerable improvements in the educational attainment of Black pupils leaving our schools and we have started to narrow the achievement gap.

“Black boys are closing the gap faster than other groups at GCSE - five years ago less than 30 percent got five good GCSEs, last year it was over 50 percent. However, I am determined that we must do more and cannot be complacent. That is why we have set out further reforms for our schools in our recent 21st Century Schools White Paper and welcome the REACH programme and the challenge provided by it to improve the outcomes and aspirations of Black boys."

The Department for Communities and Local Government will be publishing a broader strategy to promote race equality; and learning the lessons from REACH will be a big part of that. This forms part of wider measures that Government is taking forward to tackle race equality.

Entrepreneur, 'Apprentice' Winner and REACH Role Model Tim Campbell said:

"The REACH role modelling project has carried out great work in changing the way that our community addresses some of the issues around young Black men's underachievement. I'm confident REACH will continue to provide a real opportunity to get voluntary organisations, the Government and individuals working together to tackle these issues head on."

GETTING IT RIGHT, AND RIGHTING THE WRONGS

Communities Minister Shahid Malik today (Wednesday, 17 June) called on all local councils to get it right first time to ensure the public receive the modern service they expect.

Mr Malik was speaking at Kettering Borough Council where he was presented with the findings of an independent review – Getting it Right, and Righting the Wrongs - set up to look at how public services can keep up with the standard of customer service offered by the best. The team drew on experts from the public, private and third sectors, including Tesco, Consumer Focus and local government.

While many councils are already working hard to support their communities the challenge the review points out is to raise standards everywhere. The Government wants councils to therefore look again at how they deal with the public to ensure they have confidence in their local services.

To achieve this the Government is supporting a recommendation from the report for local councils to pilot a new toolkit to help councils and their partners measure their current service, find out what their customers really want and help them identify ways to improve including when things go wrong. Funding of £900,000 has been set aside to support nine pilots – one from each region - details of which will be announced shortly.

The report emphasised the need for partnership working to support customers. At Kettering Mr Malik visited a one stop shop to help people facing redundancy – bringing together job seekers with employers, job-centre-plus, training providers and the council’s benefits services to offer practical advice and assistance to people looking for work.

Shahid Malik:

"The public have a right to expect the best from their local councils. While services are improving, the expectation of the customer continues to rise. We want to be treated as individuals, and when things go wrong, we want the problem to get sorted, fast and without fuss. This is the same if we are doing the weekly shop, booking a holiday or paying our council tax.

"This review is all about challenging what councils currently do and seeing how they fare against the best. It presents local government with a blueprint to put the customer at the heart of everything it does.

"The report sets out a series of recommendations and challenges which we will now consider carefully and respond to fully in due course. However, the recommendation of a new toolkit to help local councils challenge their thinking around how customer-focused they are is one we fully support and have provided extra funding to take forward."

The review, led by David Cook, Chief Executive of Kettering Borough Council identified three key areas where improvements would make the biggest difference to the standards of customer service delivered. These areas focused on:

1. The Service and Remedy Pledge: clearly setting out to customers how you will get it right, and right any wrongs;

2. The importance of the frontline: understanding that good people are more important than process;

3. Customer focused partnerships: making sure that partnerships deliver a seamless experience and an economy of effort for the customer; and

4. Using the knowledge and experience of customers, members and frontline staff to deliver services that are tailored to the need of the customer, rather than the council - is the key for 21^st century public services.

David Cook said:

"From the outset, the review team were aware that there is much good practice out there, alongside some credible research.

"The challenge for us was to ensure that best practice becomes common practice."

Key findings include:

• Customers need clear explicit promises or pledges of the standards they can expect and what will happen if things go wrong. (These should be transparent, simple, timely, easy and flexible)
• Frontline staff are the key to the delivery of excellent services;
• Partnerships need to be customer-focused as well as considering the benefits for partners;
• Evidence shows that people are primarily interested in an apology and acknowledgement of the problem, and then their problem being put right, rather than monetary compensation;
• What was needed was an easy, practical tool for local authorities and partners to be able to apply all of the learning that is already out there;
• There are other tools and guidance documents which can then help councils and their partners in considering a route to further improvement, such as mystery shopping tools and the Customer Service Standard and the Improvement and Development Agency.

(CLG) Denham Outlines Plan to Renew Local Democracy

New Communities and Local Government Secretary John Denham today pledged to re-examine the relationship between central and local government as part of the Government's drive to renew Britain's democracy and restore trust in the political system at every level.

Mr Denham, who was appointed to his new Cabinet position last Friday, wants the debate to focus on citizens not institutions and is committed to strengthen ways in which local people can shape their communities and improve public services.

The Prime Minister today set out his comprehensive plans for constitutional and political reform in order to revive public trust in the system.

As part of this programme, Mr Denham announced he will shortly consult on ideas for placing the relationship between central and local government on a stronger and clearer basis, including the option of new legislation, so that citizens can be sure that they have strong, trusted and responsive institutions.

John Denham said:

"As the Prime Minister has made clear democratic renewal cannot simply be limited to change at Westminster, this is an opportunity for us to look at the way in which communities are actively engaged right across the country.

"Every citizen has the right to shape the communities in which they live. Crucially that means the right to elect their local leaders, the right to have services that meet their needs and the means to demand action where change is needed. Strong local democracy is dependant on councils that are effective, responsive and accountable and well positioned to serve local people.

"If councils are to fulfil this role successfully we need to step back, put local government on a surer footing and move towards less central direction, clearer accountability and more freedom to adapt services in response to the voice of local people.

"The investment that has been delivered over the last ten years combined with the hard work and commitment of local government has already led to radical improvements in the quality and delivery of service. We have already overseen a major power shift from central to local government including a slashing of targets and red tape, new city regions and multi area agreements that mean local leaders have greater powers to determine economic priorities and more power for people to have a say over how local budgets are spent.

"Now is the time to set down more clearly the principles on which central and local government will operate to restore trust in political life."
Over the coming days and weeks the Communities and Local Government Secretary will explore whether and how best the relationship between central and local government can be put on a firmer, clearer basis. Consultation will commence on this shortly.
This will build on the unprecedented steps taken since 1997 to put more power into the hands of local government. Local authorities have gained significant powers, responsibilities and financial freedoms from Central Government to enable further devolution of decision-making to local communities.

The Central-Local Concordat signed in December 2007 established reciprocal rights and responsibilities of local and central government and a framework of principles for how central and local government work together to serve the public.

The Government has also:

* given councils greater financial flexibility by removing spending strings from billions of pounds funding meaning they are free to spend this as they see fit meeting the needs of their communities; and giving them the freedom and responsibility to decide for themselves how much (and where) to borrow and invest funds.

* through Local Area Agreements reshaped the landscape in which councils operate - freeing them up to work with other local partners to better meet the needs of local communities.

* announced two City-Region pilots which will give new powers to Greater Manchester and Leeds to 'unleash and unlock' new economic growth- real strategic powers handed down from Central Government so they can decide how best to increase more jobs, skills, housing and better infrastructure, in a way that reflects local economies and helps them to move beyond the downturn.

* signed ten Multi-Area Agreements between neighbouring councils that have ensured that national policy is tailored to what is needed locally in areas covering employment, skills, transport, regeneration, housing and planning. A further wave of MAAs will be signed shortly.

* announced plans for a new fund to encourage the setting up of at least 20 new young mayors across the country; published a new strategy for participatory budgeting, so more people have a say on how public money is spent; and launched a new Asset Transfer Unit, to support councils and other public bodies to transfer more buildings into community ownership.

(CLG) Blears: community clout crucial to combat downturn

Local communities will be the driving force behind the UK's recovery from global downturn, Communities Secretary Hazel Blears said today.

In a speech to Parliament she argued that local people must be given a stronger voice and a greater say in the decisions that affect them - those communities who work closest together are likely to emerge the strongest.

The Local Democracy, Economic Development and Construction Bill, which has had its second reading in the Commons today, will strengthen local democracy and support councils and local people in working together to increase jobs, skills, housing and improve infrastructure, to help them to move beyond the downturn.

The Bill will create new local blueprints to increase prosperity, and tackle social deprivation and inequality in all parts of England. Councils will get a stronger economic role that expects them to work closely with regional partners to deliver economic growth. Regional planning is to be streamlined.

The Bill will also place a new duty on councils to promote local democracy and ensure all sections of their community understand how the council and other public bodies work, who makes the decisions and how they can get involved.

Councils will also be required to respond to local petitions on the issues that are of most importance to their local communities.

Hazel Blears said:

"A tough economy is affecting different parts of the country in different ways and to differing degrees. The downturn may be global, but the solution is local.

"It's vital that councils have the freedom, flexibility and ability to support their local communities. That's why we are giving councils new powers to address the economic challenges they face, so people in their area can have the right skills and opportunities to make the most of the upturn when it comes.

"And by giving people a greater say in local decision-making, councils will focus on the issues that matter most to them."

The Local Democracy Bill builds on government reforms to devolve more power to local leaders, in the 2006 Strong and Prosperous Communities White Paper, and last year's Communities in Control White Paper.

A new report published today to coincide with the Bill's second reading highlights the progress already being made to strengthen communities and empower citizens.

Over the past year alone, key achievements include:

* Signing off 150 Local Area Agreements;

* Announcing plans for a new fund to encourage the setting up of at least 20 new young mayors across the country;

* Publishing a new strategy for participatory budgeting, so more people have a say on how public money is spent; and

* Launching a new Asset Transfer Unit, to help councils and other public bodies transfer more buildings into community ownership.

An independent study also published today examines the various ways in which local people can be empowered and encouraged to participate in their local communities - endorsing the many measures being taken forward, including participatory budgeting, asset transfer and offering formal responses to petitions.

(CLG) Healey confirms action to protect council taxpayers

Local Government Minister John Healey has today confirmed that the Government will take action to tackle excessive council tax increases set this year by two police authorities.

Subject to approval of an order laid before the House of Commons, Surrey Police Authority will be capped this year. It will be required to set a lower council tax in 2009-10 and arrange for residents to be re-billed. This is the first time under current legislation that the Government has had to take action twice against the same authority.

Action is also being taken against Derbyshire Police Authority to restrict its scope for council tax increases in future years.

John Healey said:

"In this tough economic climate council taxpayers are rightly looking to their local authorities to provide good value for money and keep council tax bills down.

"Thanks to a £2.9 billion funding increase this year and greater financial flexibility and predictability the overwhelming majority of authorities have done just that. The average household council tax bill will rise by 2.6 per cent this year - the lowest increase since council tax was introduced in 1993. There is simply no excuse for excessive council tax increases.

"The action we are taking today should send a message loud and clear to all authorities - that the Government will take tough action to protect council taxpayers, including requiring authorities to rebill where necessary."

Local authorities have been helped to deliver the lowest-ever increase in household council tax bills by the stability that the first-ever three-year finance settlement provides - including a 4.2 per cent increase in funding this year alone.

Local authorities have already made £1.6billion efficiency savings since 2008 and the extra £600million savings expected in 2010-11 will be recycled back into their own frontline services, or used to keep council tax down.

While council tax levels for 2009-10 will remain unchanged in Derbyshire, a notional budget requirement has been proposed against which the police authority's budget and council tax levels will be measured for future comparisons. They now have 21 days in which to exercise their right to challenge their proposed notional amounts before a final decision is taken.

(CLG) Khan: New report offers 'rare insight' into racism suffered by UK Chinese community

A new Government-funded report into levels of racism experienced by members of the UK Chinese community should start a national debate on how best to tackle the problem, Cohesion Minister Sadiq Khan said today.

Hidden from Public View, published by The Monitoring Group-Min Quan Project following a Connecting Communities Grant from the Department for Communities and Local Government, examines how best to monitor and tackle racist incidents against UK Chinese people.

The report finds that:

* Chinese-origin people in the UK experience substantial racism - perhaps as much as or more than any other minority ethnic group.

* Perpetrators can be as young as 10, with their behaviour often dismissed as 'a bit of fun'.

* In particular, the report cites numerous examples of owners and workers in the Chinese catering industry facing verbal abuse and non-payment for goods on a daily basis - in some cases escalating to physical assault and even murder.

Mr Khan reiterated Government support to combat racism in all its forms, and pledged to respond to the report's full list of recommendations by the summer.

Sadiq Khan said:

"As a Government, we are committed to tackling racism wherever it occurs. That is why we have funded today's report, which should start a national debate about the plight of the UK Chinese community.

"Sadly, the Min Quan Project's findings confirm our worst suspicions, offering a rare insight into the harrowing physical and verbal abuse that members of the UK Chinese community often face. Clearly this is unacceptable.

"We have taken steps to ensure a victim of any hate crime is able to report it, and have it investigated in an appropriate and sensitive manner. Like all communities, UK Chinese people should be able to live their lives free from the fear of attack."

The Government agrees that efforts should be made to improve the reporting of race hate incidents against UK Chinese people.

A number of initiatives are already underway to tackle racism and race hate crime wherever it occurs, which the UK Chinese community can also benefit from.

This includes True Vision, a project established in May 2004 and funded by all 23 police forces, which provides information on hate crime in all its forms, and how victims can report it - including through the True Vision website.

The Government also agrees that the good work undertaken by some police forces and criminal justice agencies to tackle race hate crimes should be encouraged and shared more widely.

(CLG) Government takes a Seat at the Big Lunch Table

Communities Secretary Hazel Blears is encouraging everyone to show their community spirit and get involved in making preparations for the BIG LUNCH - a national event, taking place on 19th July, which is hoping to see millions of people across Britain get together with their neighbours to share food, drink and conversation.

The brainchild of Tim Smit, founder of the Eden Project, the BIG LUNCH is backed by a range of celebrities and business sponsors and has gained cross party support.

Sharing food is a fantastic way of bringing people together and the BIG LUNCH is about people coming out of their homes to sit down tuck into locally grown, made or bought food and drink together with friends and neighbours in streets, parks, church halls or community centres.

Hazel Blears has written to all Local MPs to encourage them to get involved.
It is hoped that street decorations, al fresco dining and roadside entertainment will be a central part of the celebrations and the BIG LUNCH organisers are encouraging residents to take over their street. Local Government Minister John Healey has therefore written to Council Chief Execs encouraging them to do all they can to support events in their area including giving the thumbs up to street closures and making dealing with any technical matters as smooth and straightforward as possible.

Communities Secretary Hazel Blears said:

"People will try and tell you that community spirit is a thing of the past. Rubbish. It is alive and well and the BIG LUNCH is a chance for all of us to prove it."

"We all lead busy lives, some of us might be a bit on the shy side. That means that even if we want to we might not have got round to introducing ourselves to our neighbours or getting as involved in our communities as we might like. What better way to change that than by having a street party. Meeting, perhaps for the first time, the people that live at number 16, 39 and 52.... .

"It's not going to happen by magic. It will take local volunteers to organise, local councils need to play their part, people will need to grow or cook or buy or bake the food, send out invitations, get friends and neighbours involved. But it will certainly be worth it - more people happy, safer and confident about the place in which they live. "

With people celebrating what makes their area unique, every BIG LUNCH party will be different. Everyone will be encouraged to share their talents as organisers, gardeners, chefs, artists, musicians. The day after people will be able to walk down their street and actually know something new about the people in the homes they pass.

To find out if there is a BIG LUNCH already organized in your area or for tips and information on how to organise your own street party visit http://www.thebiglunch.com

(CLG) Khan: Celebrate best of British on St George's Day

Cohesion Minister Sadiq Khan has called on communities to use St George's Day to celebrate the best of British values.

This year there have already been successful parades where communities have defied the critics and united to fly the flag and enjoy this traditional day of celebration.

The latest Citizenship Survey published today also confirms that people feel a strong sense of belonging both to their neighbourhoods and to Britain.

Of those questioned, 84 per cent reported feeling a strong sense of belonging to Britain, while nearly four out of five said they feel a strong sense of belonging to their neighbourhoods - including 36 per cent feeling that they very strongly belong, up from 27 per cent in 2003.

On a visit to the Royal British Legion in Rotherham, where he thanked members for putting their lives on the line, Sadiq Khan said:

"There is a long tradition in this country of local people supporting celebrations and marking special days in their communities. St George's Day is an important date in our calendar and as England's national day, should be a time when we all reflect what is good about our community.

"It is a particular pleasure to visit the Royal British Legion on St George's Day. The values that St. George represents are those of the Legion: courage, commitment and compassion. They are the best of British values.

"For too long we have seen the flag hijacked by those who spread race hate or people shying away from a celebration of English culture and history because of a fear of offending somebody. We should not let these people spoil this celebration which is an opportunity to show the true spirit of this country - one of inclusiveness, tolerance and friendship.

"Let us all celebrate England's proud history and the strength of different communities living together side by side."

(CLG) New homeowners mortgage support begins

New support to help homeowners remain in their homes if they fall on difficult times will be available from today, announced Housing Minister Margaret Beckett.

Homeowners Mortgage Support (HMS) will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.

This new support will be available throughout the UK and builds on a range of measures the Government has already put in place to ensure that repossession is always a last resort.

From today, the following major high street lenders will offer their customers HMS: Lloyds Bank Group (which includes Halifax and Bank of Scotland), Northern Rock, the Royal Bank of Scotland (which includes NatWest and Ulster Bank), Bradford and Bingley, Cumberland Building Society, and the National Australia Bank Group (which includes Clydesdale and Yorkshire Bank).

A number of other banks, building societies and specialist lenders have also confirmed today that they will offer their customers HMS as soon as possible. These are Bank of Ireland (which includes Bristol and West), GMAC, GE Money, Kensington Mortgages, the Post Office and Standard Life Bank.

Lenders offering HMS will have the security of a Government guarantee if the borrower defaults.

At the same time, four other high street lenders, Barclays (including First Plus), HSBC, Nationwide and Santander (including Abbey and Alliance and Leicester) have all confirmed today they will offer comparable arrangements to HMS to their customers, while opting not to take up the Government guarantee. Customers of these institutions experiencing a reduction in income and willing to make regular monthly payments will receive a similar level of support and be encouraged to seek independent money advice.

As a result of today's announcement, lenders covering more than 80 per cent of the mortgage market will now be providing enhanced support to their customers. Borrowers will receive independent money advice as part of these changes to help them make the right decisions for their circumstances.

Margaret Beckett said:

"We know that many families are worried about how to pay the mortgage right now, and we're determined to ensure there is real help available for them.

"Today's news is a result of excellent co-operation between Government, lenders, and money advice services.

"On top of the range of measures we've already put in place, this new support will help borrowers who just need a bit more time to get themselves back on their feet.

"The clear message to borrowers is to contact your lender straight away if you're concerned about how to pay the mortgage as often a solution can be found."

The Government will continue to work with smaller lenders to encourage as many as possible to offer HMS or comparable arrangements for their customers in the future. HMS does not provide consumers with a payment holiday. The mortgage interest payments that have been deferred will eventually have to be paid back.

The enhanced support agreed by lenders today will be underpinned by FSA regulation and the Financial Services Ombudsman to ensure customers are treated fairly.

Since the autumn, the Government has put in place a range of measures to give more protection to households at risk of repossession. This includes a new pre-court action protocol for all the main high street lenders, quicker and more extensive support to home owners who have lost their job, a scheme to enable the most vulnerable home owners to stay in their homes, and a major extension of free debt and legal advice.

Statistics released today show that, on average, each month more than 2,800 people in England and Wales at risk of losing their home benefit from free, immediate legal advice and representation in Court, thanks to the Housing Possession Court Duty Scheme, run by the Legal Services Commission.

Duty advisers are available on days when repossession cases are heard and are available to anyone, regardless of their income, who has a hearing listed on that day. Almost 34,000 people across England and Wales used this service last year, an increase of more than 5,000 compared to 2007.

(CLG) Helping to house our injured heroes

Ex-servicemen and women who are seriously injured are to be given priority for specially adapted social homes, announced Housing Minister Iain Wright today.

Councils are being instructed to treat seriously injured service personnel as a priority when allocating modified housing, under new guidance being issued today.

It will help to ensure better availability of specially adapted housing with features like walk-in bathrooms, wider door frames, lowered light switches, and entry slopes rather than steps, for service personnel as part of the Government's commitment to support those injured in the service of their country.

The guidance will also reinforce changes to help make sure all members of the Armed Forces can also apply for social housing in areas in which they were based during their service. Previously, service personnel were restricted by the need to demonstrate a local connection beyond having served there.

Iain Wright said:

"It is right that our servicemen and women who are seriously injured fighting for their country are given the housing support they deserve. These new rules mean service personnel must be treated as priority for specially adapted homes. We are determined to ensure our armed forces are recognised for their heroic efforts and helped in their transition to civilian life and getting a home."

Defence Minister Kevan Jones said:

"We are determined to ensure that our seriously injured service personnel are rewarded for their sacrifice with the best possible package of support. It is only right that they are given top priority for specially adapted homes to ensure that they and their families can live in the best possible accommodation."

Director General of The Royal British Legion Chris Simpkins said:

"Housing was a key issue for the Legion's 'Honour the Covenant' campaign, so we welcome this decision which will be of real benefit to those who have given so much for their country.

"We welcome the steady progress being made to restore balance to the Military Covenant, which this announcement signifies and which is so important for our Armed Forces."

Today's announcement forms part of the Ministry of Defence's Service Personnel Command Paper, a package of cross-Government measures designed to end disadvantage experienced by our Armed Forces, their families and veterans as a result of Service. These measures - launched by the Defence Secretary last July - include doubling compensation for injured personnel, establishing community mental health schemes across the UK to provide specialist care for veterans and improving access to education for Service leavers.

(CLG) A bigger role for communities in inspiring young people

Young people will get extra encouragement to unlock their talents as part of a £10m Inspiring Communities initiative, Communities Secretary Hazel Blears announced today.

The Government's New Opportunities White Paper argued that social mobility has improved in recent years. Some 600,000 youngsters have been lifted out of poverty in the last decade. The proportion of young people from lower income families going to university has gone up.

However, the White Paper also recognised that in some deprived areas, young people are less likely to aim high. They do not always make the link between doing well in education and doing well in life. Low self esteem, low aspirations and limited horizons can act as barriers to success.

What happens in schools is crucial to addressing underachievement, but a child's sense of what they can achieve is influenced by factors beyond the school gate. Lack of inspiration or support from friends, families or peers can all play a part.

Inspiring Communities is about investing in locally conceived, locally delivered projects that will get whole communities standing behind the talented young people in their midst and make sure that communities play a bigger part in fostering and investing in that talent.

Communities Secretary Hazel Blears said:

"Sometimes a young person can't get the breaks they deserve or don't have a sense of what's out there for them because the people around them fail to see their potential. We need to turn this around.

"The communities where young people live should not hold them back; they should be the source of inspiration and practical support that will help them to achieve. This programme is about getting all the people in communities who want the very best for their children and for their area to work together to make the difference."

Inspiring Communities will support people in deprived communities to develop innovative campaigns and activities designed to raise the achievement of young people, broaden their horizons and build up self esteem. The programme is designed to put local people - parents, neighbours, businesses, teachers, voluntary groups and councils - in the driving seat to harness their collective knowledge, energy, resources and enthusiasm to boost the aspirations and achievements of young people.

Beverley Hughes, Children and Young People's Minister said:

"This is a great opportunity for parents, businesses and everyone who works with young people to come up with ideas to engage and benefit the young people in their communities. We know most young people are doing well and working hard at school, so I am delighted that this initiative will give them the chance to demonstrate their skills and talents and the valuable contribution that they can make to their communities."

Funding will be made available to up to 15 neighbourhoods (comprising between 5,000 and 10,000 residents) who will receive up to £450,000 and expert help over the next 2 years to design and deliver projects and activities that will:

* Break the cycle of generational underachievement by broadening young people's horizons and experiences - this could include volunteering programmes, youth led projects, visits to university campuses, theatres and museums, support for young people to undertake work experience placements;
* Provide advice and inspiration to young people about the routes they can take into training, work experience, employment, further and higher education;
* Raise parents' aspirations and self confidence so that they can support their children to make the most of opportunities available to them;
* Draw on the talents of the whole community and beyond in order to expand social networks. For example by twinning with communities from different parts of the county or country, or encouraging local people to make a "community pledge" to support and encourage local kids.

Minister for the Cabinet Office, Liam Byrne said:

"The world economy will double in size in the next two decades, creating one billion jobs for skilled workers. We are working to ensure British people can seize the opportunities of this new global age. The Inspiring Communities project is designed specifically to raise the expectations of young people in 15 communities so that they can make the most of their potential and turn aspiration into success. We are making sure that Government acts together so everyone can achieve their potential over the decades to come."

Only deprived neighbourhoods within 64 local authorities will be eligible to apply for funding, with the final 15 Inspiring Communities selected from applications which must be on behalf of neighbourhood partnerships. The initiative is intended for neighbourhoods where low aspirations have been identified as a barrier to young people achieving their potential.

As a minimum partnerships must feature the local authority, local secondary school(s) and local third sector organisations. However, the involvement of young people, parents and the wider community, local business local youth services, and other relevant service providers is strongly encouraged, so as to bring together as many people and organisations who can help kids on the road to success as possible.

The areas that become Inspiring Communities will each have a Community leader who will be the champion and public face of the campaign, galvanising support and ensuring that it delivers its objectives.

Inspiring Communities is a joint initiative from the Department for Communities and Local Government, the Department for Children Schools and Families and the Cabinet Office. It has also secured support right across government, with a further 11 government departments committed to encouraging ambitious and creative work locally.

(CLG) Full disclosure proposed for Council top earners

New proposals for the full disclosure of senior staff pay and perks at local councils were announced by Local Government Minister John Healey today.

The consultation proposes changes to the Accounts and Audit Regulations (2003) creating a new legal requirement and could require up to 475 local authority bodies to include detailed senior pay information in 2009/10 annual statement of accounts.

The new remuneration disclosure rules would require councils to set out full details for around 2500 specifically identified senior posts including temporary senior appointments covering salary, bonuses, pensions, perks and compensation pay offs.

These new disclosure standards would bring councils up to the same high standards that are already required of civil servants and Government Ministers.

Additionally, the proposals build on the standards set in central government by also requiring councils to publish a head count, in narrower £5,000 band increments, of all staff taking home more than £50,000 a year.

John Healey said:

"It is right that council decide the wages for their staff, but the public pays and they have the right to see the full picture of top pay and perks.

"Councils are big organisations with a tough job - they need the best people in charge. But we've recently seen top salaries rising far faster than the rest of local government. This salary spiral has to stop.

"The level of public disclosure for councils is much lower than we now rightly require from the civil service and ministers. I want it brought up to a better standard.

"That is why I am proposing full disclosure in new regulations that will mean authorities must publish in their annual reports what their top earners get in pay, pensions, redundancy payoffs, bonuses and other special allowances.

"In today's tough economic climate councils must think harder about senior salaries and this will put a brake on spiralling pay packets."

Central government's role is to set the right framework in which councils can decide their own pay and appropriate reward packages for good performance.

Mr Healey wants councils to ensure that pay and reward decisions are also made more fair and transparent. Councils are already beginning to discuss and share best practice around setting pay standards, especially at senior levels.

The Government recognises that pay is part of a wider workforce picture and is working with local government and partners to identify ways to widen the talent pool of potential recruits available to middle and senior management vacancies in local government.

(CLG) Average household council tax rise the lowest ever

The average rise in council tax per household next year will be the lowest ever, Local Government Minister John Healey announced today.

Figures published today show that the average Band D council tax increase will be three per cent. The average household council tax bill is almost £240 lower than the average Band D amount, and will increase by 2.6 per cent - the lowest such increase since council tax was introduced in 1993.

The first ever three year local government funding settlement giving councils an extra £8.9 billion, including 4.2 per cent more next year, is helping authorities to plan ahead and better manage the pressures their communities face. Planned efficiency savings over the settlement period are expected to reach £4.9billion.

The Government has been clear it expected an average council tax increase substantially below five per cent next year. The vast majority of local authorities have complied, with 23 councils, excluding their parish precepts, actually freezing or reducing council tax.

However, Mr Healey is also announcing today that Surrey and Derbyshire Police Authorities have set excessive increases that have been "designated" for capping action. They now have 21 days to make their case to government.

Derbyshire Police Authority has set its budget increase to 4.99% and its council tax to 8.68%. Last year Surrey Police Authority was capped and was set a notional budget for 2008/09, providing the basis for judging future increases. Based on those notional amounts, Surrey has set its budget increase to 4.82% and its council tax to 7.07%. This is the first time that the Government has had to take action twice against the same authority.

John Healey said:

"Most councils across the country are tightening their belts, which is exactly what the public wants to see. Today's figures show that the vast majority of local authorities have kept increases to a minimum.

"The average household council tax bill will rise by 2.6 per cent - the lowest increase since council tax was introduced in 1993.

"An extra £8.9 billion from the Government's three year funding settlement and £4.9 billion of planned efficiency savings are helping councils maintain both high quality public services and low council tax, and for the first time ever the public now see on their bill how efficient their council is.

"With a tough economic year ahead councils will need to do even more to control costs and I remain ready to be tough with capping powers to protect council taxpayers from excessive increases."