Achieving best value for public expenditure has been a legal requirement for Scottish local government since 2003. Although there is no statutory definition of what best value is, the rolling programme of best value audits undertaken by Audit Scotland has focussed and refined expectations of what is expected from Council Chief Executives and their political masters.
Local government is therefore increasingly focused on outcomes to demonstrate continuous improvement in service delivery and best value for public money. This focus was sharpened by the Single Outcome Agreement between national and local government in 2007. The Christie Commission was set up by the Scottish Government to examine how Scottish public services can be delivered to secure improved outcomes across the country.
In their submission to the Commission, Council Chief Executives (SOLACE) urged “a consistent approach to delivering outcome focussed public services.....by consolidation of governance regimes across agencies.” SOLACE “believes that the duty of best value should be extended to cover all public services. An improved definition of best value - as a duty of continuous improvement measured in terms of outcomes for both areas and people would also be welcomed.”
It appears that The Commission agreed. Their response was to recommend two key developments: 1) the introduction of a new set of statutory powers and duties, common to all public service bodies; and 2) Audit Scotland having a stronger remit to improve performance and save money across all public service organisations, and merging the functions of the Auditor General and the Accounts Commission.
This is indeed a quiet revolution in the making. Since 2003 there has been tension between those parts of the public sector which were legally obliged to achieve best value and those which had no such legal duty. Principally, local government is under the best value regime but not national government. There are also different audit regimes and reporting processes, albeit mainly under the auspices of Audit Scotland.
By extending the statutory duty of best value to all public services and consolidating the performance audit function under Audit Scotland, and the merged functions of the Auditor General and the Accounts Commission, we will take a very significant and important step towards a cohesive and consistent public sector.
There will be legal framework to secure a real shift towards outcomes in a way that takes account of best value (the budget), continuous improvement (performance management) and outcomes (the customer). If those requirements apply to every public pound spent in Scotland, the general public will be able to compare and contrast different parts of the public sector from a common base. The best value torch will be shone on all areas and should expose the weak links. It will be interesting to see how some policies, such as universal entitlements, stand up to best value scrutiny.
The existing best value regime is also closely linked with community planning obligations. If The Commission’s recommendation is accepted by the Scottish Government, there will be an opportunity to extend and refine the legal requirements for best value and community planning. SOLACE suggested a legal requirement for all public bodies delivering local public services to participate in community planning.
It may also be prudent to include a new statutory power of general competence for local authorities to give them flexibility to react to local circumstances in a way that reflects their local democratic importance. Will this be a step too far for the Scottish Government? Are they prepared for direct performance management and value for money comparisons between their departments and agencies and local authorities? Can they afford not to?
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