Government issues statutory guidance on best value standards and interventions

The Secretary of State for Levelling Up, Housing and Communities, Michael Gove, has issued statutory guidance on best value standards and interventions under section 26 of the Local Government Act 1999, aimed at providing greater clarity to the sector in England on how to fulfil the best value duty.

The guidance, which followed consultation and can be viewed here, covers:

  • Best value powers
  • Guiding principles
  • Defining best value
  • Assurance and early engagement
  • Evidencing failure
  • Models of intervention
  • Exiting intervention

It also contains annexes on the end-to-end process of interventions, and further statutory best value guidance.

Among the changes made following the consultation is an emphasis on the importance of effective communication between the Head of Paid Service, Section 151 Officer and Monitoring Officer. 

Writing in the foreword to the statutory guidance, Michael Gove said: “Councils in this country tend to have a robust record of transparency, probity, scrutiny and accountability – a reputation worth protecting. Most councils are also committed to continuous improvement and transformation, and strive to achieve value for money when carrying out their functions.

“Yet as well as celebrating the best of local government, we must also act when the high standards we expect are not met. The cause of devolution and decentralisation is set back by the glaring failures of some councils.

"It is right that the government intervenes in these circumstances using powers under the Local Government Act 1999. The government recognises the importance of councils’ independence and accountability to communities, and does not use these powers lightly. At the same time, we will take all necessary steps to protect residents and uphold the good name of local government.”

The Secretary of State added: “This guidance provides more clarity on the use of powers under the Act where this Best Value Duty is not, or is at risk of not, being met. And where these standards are not upheld, it sets out the models of statutory and non-statutory intervention available, with stages of escalation.”

Gove separately noted in his foreword that existing guidance on four-day working weeks made it clear that local authorities should not be practicing such arrangements. 

“This is part-time work for full-time pay and it is government’s view that these practices are unlikely to adhere to the Best Value Duty. This guidance demonstrates that we will take action where an authority is not using its resources effectively and does not have a credible workforce strategy.”

A further best value notice has been today (8 May 2024) issued to South Cambridgeshire District Council, which has been at the forefront of trialling a four-day week.

The Secretary of State said the statutory guidance had been developed for local authorities, including combined authorities and combined county authorities, in England, but he encouraged all best value authorities to bear its principles in mind.

“Prompt intervention to identify and address challenges is always the better approach. When we collectively put appropriate support in place before failure takes root, we can protect citizens and taxpayers from more severe consequences,” he suggested.

Gove also said that when tackling weaknesses earlier, you could expect to see more inspections and locally instigated reviews.

“This transparency and challenge should be welcomed by all councils that seek continuous improvement – the core aim of the Best Value Duty,” he argued.

Local authorities, including combined authorities and combined county authorities, in England are required to have regard to the guidance.

Accompanying the guidance is a summary of the consultation responses received and the government’s response to the consultation.