‘Best Value’ has been defined as “securing continuous improvement in the exercise of all functions undertaken by [an] authority, whether statutory or not, having regard to a combination of economy, efficiency and effectiveness” (DETR, 1999, paragraph 3) . The 1999 Local Government Act (LGA) imposes on most bodies within the local government finance system in Britain, including police and fire services, a duty to make arrangements for the achievement of Best Value in the performance of their functions.
The duty came into force from 1 April 2000, accompanying mandatory duties to consult with representative groups of specific categories of people, and to refer to any relevant guidance issued by the Secretary of State. Section 5 of the 1999 LGA states that Best Value authorities must review all of their functions within a time period specified by the Secretary of State (initially, probably, a period of five years). Local performance plans relating to Best Value must then:
• Provide local people with a summary of how far the authority was successful in meeting the objectives and performance targets of the previous year, and the results of its performance as compared with that of other Best Value authorities.
• Inform local people of the performance targets it has set itself for the following year and future years, where necessary, and the extent to which it is on the way to meeting any longer-term targets. Where it is not on course, this may include an outline of what action(s) it is taking to remedy the situation.
• Summarise the outcome of the reviews carried out under section 5, which will usually be expressed in the form of revised targets, and the future programme for achieving them.
The Audit Commission has powers of inspection under section 10 of the LGA to assess compliance with the requirements of Best Value, and retains duties under the 1998 Audit Commission Act to set local authority ‘performance indicators’.
The principles of Best Value include that the duty is owed by local authorities to local people, both as taxpayers and customers of local authority services. Performance plans should support the process of local accountability to the electorate. Achieving Best Value is not just about economy and efficiency, but also effectiveness and the quality of local services – so that the setting of targets and performance against these should underpin the regime.