Major Milestone Reached For Devolved Decision-Making For Local Areas - Local Area Agreements drive improved outcomes for communities

47 of the agreements signed today incorporate financial incentives worth £485 million, for local areas to meet more challenging targets. An immediate payment of £45 Million will provide a boost to help local areas to achieve these.

Signings within the West Midlands region are: Birmingham City Council, Herefordshire Council, Walsall Metropolitan Borough Council, Shropshire ( including; Shropshire County Council, Bridgnorth District Council, North Shropshire District Council, Oswestry Borough Council, Shrewsbury & Atcham Borough Council and South Shropshire District Council) and Worcestershire (Worcestershire County Council, Bromsgrove District Council, Malvern Hills District Council, Redditch Borough Council, Worcester City Council, Wychavon District Council and Wyre Forest District Council).

As reinforced in the Budget Statement, LAAs play a key role in improving the delivery of services and outcomes by setting out agreed priorities for local areas, allowing local authorities and their partners flexibility in their use of resources and in the way they deliver on the ground. Local government funding is streamlined under four blocks: Children and Young People, Healthy Communities Older People, Safer and Stronger Communities and Economic Development and Enterprise. Similarly, a raft of different targets previously linked to separate funding streams is consolidated, enabling each LAA to focus on the issues that are most relevant to their area.

From 07/08 even more area-based funding will be automatically pooled in LAAs. For example, subject to successful consultation with local areas bidding for New Growth Point status, ODPM will pool the first round of this funding worth £40 Million (for 2007/8) as part of the Economic Development and Enterprise Block. This will further enable local areas to focus on the priorities of their communities, strengthen front line services and reduce the financial reporting burden.

Minister of Communities and Local Government, David Miliband said:

“Local Area Agreements are key to delivering central and local government's shared ambitions - expanding economic opportunity, modernising public services around citizens needs, and building safer and stronger communities. The agreements cement the role of local government as leader of local public, private and voluntary sector coalitions united in seeking better outcomes for their communities.

“With the 66 agreements signed today, more than half the country is engaged; by this time next year the whole of England will have Local Area Agreements in place. There is a clear direction of travel towards more automatically pooled funding and greater flexibility to meet local needs, and a commitment on all sides to work together to realise the potential Local Area Agreements provide.”

Ruth Kelly, Secretary of State for Education and Skills, said:

“It is excellent to see that Local Area Agreements are gathering pace. These agreements are key to our vision – not just in my Department, but a vision shared across Government – for outstanding, joined up and cost-effective local services in all our communities. They are central to our relationship with modern local authorities, recognising their unique role as democratically elected leaders and giving them more freedom on exactly how they spend money, while helping us to deliver more successfully on our ambitious children’s agenda.”

Sir Sandy Bruce-Lockhart, Chairman of the Local Government Association, said:

“There can be no doubt that Local Area Agreements are already starting to deliver improvements across all public services. These agreements give people locally the chance to define the ambitions and priorities for their area. By bringing together all public services through better co-ordination, innovation and efficiency this has real potential to improve outcomes and make better use of taxpayers’ money.

“Realising this potential depends on greater devolution from the centre and maximising our ambitions locally. The signing of 66 new LAAs takes this another step forward.”