Scrapping CAA 'would save billions'

Author: Local Government Chronicle - Feb 2, 2010

Scrapping the Comprehensive Area Assessment (CAA) would save in excess of £2bn and improve council performance, according to a report.

Thinktank Localis said councils should be able to opt out of the CAA and take control of performance measures, assisted by more local accountability and peer support.

The report said the cost of CAA compliance was £2bn and overall savings "could be far higher when the costs of system distortion are considered".

Key recommendations in the report, For Good Measure: Devolving Accountability for Performance and Assessment to Local Areas, include:

* CAA should be optional and councils should be actively encouraged to opt out. They will still be audited on their financial accounts.

* Councils alone must also choose their own measures to drive up performance. Councils will still be required to perform a self assessment of their performance.

* Councils must be required to release more data to residents. All financial expenditure over £500 must be placed in the public domain, alongside information about the work of councillors – such as attendance record, declared interests and voting record.

* Twenty five indicators from the National Indicator Set, those not selected by any councils in their Local Area Agreements, should be scrapped immediately.

* The remaining indicators and targets should be subject to a rigorous check based on a number of factors including public interest. In the long run this will lead to an ever evolving ‘Local Indicator Set’.

Localis chief executive James Morris, said: "Local authorities are more accountable to central government than to their residents.

"Without doubt this has been a contributing factor in the disengagement of local people. The new system we propose can turn this underwhelming system of performance and assessment on its head".

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