Best Value
Part 1 of the Local Government Act 1999 sets out the requirements for Best Value
authorities. Best Value authorities are required to secure continuous improvement
in the way in which they exercise their functions, having regard to economy, efficiency
and effectiveness. Best Value is about delivering commitments at the local level
to achieve these improvements. http://www.local-regions.detr.gov.uk/bestvalue/indicators/pi2001-02/
pi2001html/index.htm
Section 4 gives the Secretary of State the power to specify performance indicators
and performance standards in respect of the way in which best value authorities exercise
their functions. The Act requires that in specifying performance indicators and standards,
the Secretary of State will aim to promote improvement in the way in which functions
are exercised having regard to a combination of economy, efficiency and effectiveness.
In its ‘Code of Audit Practice’ the Audit Commission defines these terms as:
Economy: acquiring human and material resources of the appropriate quality
and quantity at the lowest cost
Efficiency: producing the maximum output for any given set of resource inputs
or using the minimum inputs for the required quantity and quality of service provided
Effectiveness: having the organisation meet the citizens’ requirements and
having a programme or activity achieve its established goals or intended aims to best
value authorities on setting performance targets.
The 1999 Act refers to best value performance indicators, standards and targets:
Performance indicator: means the measure of a best value authority’s performance
in exercising a function.
Performance standard: means the minimum acceptable level of service provision
which must be met by a best value authority in the exercise of a function and
measured by reference to a performance indicator for that function. A failure to
meet a performance standard where specified will be judged as failing the test of
best value for that service or function.
Performance target: means the level of performance in the exercise of a
function that a best value authority is expected to achieve, as measured by reference
to the performance indicator in relation to that function.
Performance targets are an important driver of improvement and allow authorities,
their auditors, inspectors, and service users to judge how well a service is performing,
and what needs to be done to bring performance up to the levels which are being achieved
elsewhere.
Section 5 of the Local Government Act 1999 provides for the Government to issue
guidance to best value authorities on setting performance targets. Statutory guidance
has been issued by the Home Secretary to police and police authorities in February
2000 http://www.homeoffice.gov.uk/ppd/pru/statgde.htm
To ensure that clear accountability is achieved, best value authorities are required
to publish details of their performance, as illustrated by performance indicators,
standards and targets, in their annual Best Value Performance Plan (“BVPP”). The first
BVPPs were published in March 2000. In future plans, authorities will need to publish
data for the previous and current financial years, e.g. plans for 2001/02, to be published
by 31 March 2001, should contain outturn data for 1999/2000 and estimated outturn
data for 2000/01.
To improve comparability between authorities, it is essential that performance
information be reported in a consistent manner. CIPFA has modernised the local authority
accounting framework to account for best value and has codified proper practice in
a ‘Best Value Accounting – Code of Practice’ published in Spring 2000 http://www.cipfa.org/pt/bestvalue.html.
The Government expects authorities to follow this Code.
Community safety BVPIs have been published http://www.local-regions.detr.gov.uk/bestvalue/indicators/pi2001-02/pdf/chapter11.pdf
and will be discussed in more detail in section 6.2.1.
The duty of best value is inextricably linked to the delivery of the Community
Strategy. The strategy provides a vision for the community and provides ‘the starting
point for the first step under best value – the setting of strategic objectives and
corporate priorities’ (DETR Circular 10/99 para. 7 http://www.press.detr.gov.uk/9912/downloads/1208/bv.pdf.
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Crime and Disorder Partnerships
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