New localism
Encyclopedia
New localism is a concept associated with Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

's Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

 government in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

. It is intended to indicate a cautious devolution of power to the local level in an attempt to better implement national goals.

Labour's first term approach

New localism arose from the experience of Labour's first term of office (1997–2001), during which the government's policy approach was characterised as being highly centralised and only partly effective. The most emblematic of its policies were the centrally-driven literacy and numeracy hours in schools.

Labour also introduced new and more complex forms of performance management in an attempt to drive up the standard of local public services through inspection and target setting.

In Whitehall
Whitehall
Whitehall is a road in Westminster, in London, England. It is the main artery running north from Parliament Square, towards Charing Cross at the southern end of Trafalgar Square...

, this was achieved through public service agreements between departments and the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...

, setting out what was expected of a particular department in return for its funding.

In the wider public sector, local government was required to undertake a heavy service review and inspection programme known as Best Value, while the NHS got a new Commission for Healthcare Inspection and a system of 'star rating' based league tables.

However, these policies were rapidly seen to be too bureaucratic. Indeed, they could sometimes have perverse consequences as public service organisations changed their priorities to meet centrally set targets. One example of this is arguably the way the government's focus on education and social services drove councils to focus their spending and effort in these areas.

While positive in itself, the result was that local environmental services were relatively less well resourced, despite the fact that they are key determinants of public satisfaction with local government. The result was that councils were seen to be improving rapidly by Whitehall, but not by the public, whose satisfaction with local government declined.

New localism emerged from an increasing understanding of the limitations of centrally-driven policy implementation. It involved an acceptance that local problems could not be solved by standardised approaches imposed from above, and that local agencies needed space to adapt and innovate within the policy framework.

New localism and 'old localism'

New localism is therefore characterised by a cautious devolution of power to the local level in an attempt to better implement national goals. It emphasises the devolution of managerial
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 over political power - the aim is generally to allow local managers to meet national priorities more effectively, rather than to allow local politicians to derogate from national goals.

New localism differs from the implicit 'old localism' in two important senses. First, it accepts the role of central government in driving change at the local level, something that the localists of the 1980s strongly resisted. Second, it does not centre on the role of the local authority, but takes a wider view of the locality that includes communities and other public service organisations such as health and police
Police
The police is a personification of the state designated to put in practice the enforced law, protect property and reduce civil disorder in civilian matters. Their powers include the legitimized use of force...

 services.

New localism in practice

New localism has been most strongly advocated by the New Local Government Network
New Local Government Network
The New Local Government Network is a United Kingdom think tank which was founded in 1996. Its director is Simon Parker, previously of Demos, the Institute for Government and the Confederation of British Industry....

 think tank
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...

. Advocates in the Labour government have included Alan Milburn
Alan Milburn
Alan Milburn is a British Labour Party politician, who was the Member of Parliament for Darlington from 1992 until 2010...

, the former health secretary, and Hazel Blears
Hazel Blears
Hazel Anne Blears is a British Labour Party politician, who has been the Member of Parliament for Salford and Eccles since 2010 and was previously the MP for Salford since 1997...

.

Nick Raynsford
Nick Raynsford
Wyvill Richard Nicolls Raynsford , known as Nick Raynsford, is a British Labour Party politician. A government minister from 1997 to 2005, he has been the Member of Parliament for Greenwich & Woolwich since 1997, having previously been MP for Greenwich from 1992 to 1997, and for Fulham from 1986...

, the local government minister from 2001–2005, used his tenure to launch a process called Local:Vision, which aimed at creating a 10-year strategy for local government policy and took a distinctively new localist perspective. His successor, David Miliband
David Miliband
David Wright Miliband is a British Labour Party politician who has been the Member of Parliament for South Shields since 2001, and was the Secretary of State for Foreign and Commonwealth Affairs from 2007 to 2010. He is the elder son of the late Marxist theorist Ralph Miliband...

, appears to be developing this approach further, suggesting the continuing development of a new localist agenda in Labour's third term (which began in 2005).

Key new localist policies include:

Foundation hospitals - the granting of more autonomy to NHS hospital trusts that score the highest marks in their inspections, including freedom to borrow money on the markets and adjust staff pay levels. The foundation trusts must create an elected board including representatives from the local community to oversee their work.

Freedoms for local government - Labour granted a number of new freedoms to councils, including the right to freely borrow capital on the financial markets and a general reduction in the number of plans that must be submitted for central government approval. Further freedoms were promised to those councils that scored the top 'excellent' grade in the key Comprehensive Performance Assessment inspection process. These include freedom from council tax capping and a three year holiday from inspection. The local government community has complained that these freedoms are not always granted in practice.

Neighbourhoods - Labour showed a growing interest in creating new forms of more direct neighbourhood governance in the hope of improving the responsiveness of public services and engaging local people in both local democracy and the delivery of their own services through service level contracts and co-production.

Education reform - it might also be argued that the government's policy of transferring power to school headteachers from local education authorities represented a new localist approach to devolving beyond the council to local communities.
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