Councils to gain £1.5bn through new service agreements

Councils are set to claim their share of £1.5 billion from the government if they hit new targets on local priorities under the second generation of the local public service agreements (local PSA) scheme.

Under the new guidance, councils will have more leeway to set targets in their local areas in areas such as crime, education standards and providing cleaner streets.

Announcing the new guidance at a conference held at the Local Government Association today, Local Government Minister Nick Raynsford said: "I am delighted that the local PSA scheme - which started some three years ago - has proved so popular, with almost all of the larger local authorities getting involved.

"At the heart of the new scheme will be an agreement between councils their partners, and government, about priorities for local improvement."

Chief Secretary to the Treasury Paul Boateng said that the second generation of local PSAs should "drive changes forward, seeking to be as radical as possible".

Sir Jeremy Beecham, Chair of the Local Government Association, added: "Local government has great ambitions for improving the quality of life for its local residents, but it cannot succeed alone and needs to use its role as a community leader to work with local partners to tackle the issues which are most important in their communities."

Through local PSAs councils agree performance targets with government and earn a reward grant for meeting these targets. A 'pump priming' grant (the average is £1 million per authority) is given at the start of the process.

(gmcg)