John Healey MP

Speech by John Healey MP Minister of State, Department for Communities and Local Government to the LGA Conference 2007 on 3 July 2007.

Good afternoon everyone and thank you for inviting me to attend your General Assembly - before the full conference begins.

Today is my second full day in the job and I am delighted to have such an early opportunity to meet and speak with you - but be advised, treat these thoughts I share with you as a 'work in progress'

I was also appointed yesterday afternoon as Minister for Floods Recovery. I come to you this afternoon direct from Lichfield. I would like to start by paying tribute to the tremendous work of everyone who have worked together through day and night, lead by Lichfield District Council, to deal with the immediate aftermath on the areas of Elford and Farley affected by the flooding and who are now working to help households, villages and business hit by the floods to return to normality as rapidly as possible.

I say this to all councils coping with the current floods in central Government we will do all we can to support your locally led recovery work.

The attempted terror attacks last week in London and Glasgow also highlight the importance of local government's role helping to deal rapidly and reassuringly with such dangerous and very difficult incidents and in helping to build the cohesion of our communities. That is also our longer term aim to demonstrate our inclusive British values and way of life which will not be intimidated by terrorists. And will isolate those who aim to strike at the heart of our society by the use of violence and terror.

These are testing times but it is in such times as these sound leadership at all levels is revealed.

In recent days we have all seen significant changes in political leadership. In the LGA you conducted your own stable and orderly transition. So can I acknowledge the enormous contribution Sir Sandy Bruce-Lockhart has made. He has represented local government of all parties, all regions, all levels. He has given local government clear, reforming and rightly challenging national voice. I personally enjoyed debating and working with Sandy over the last couple of years and look forward to doing the same in my new position with Sir Simon Milton as your new Chairman and with Jeremy Beecham, Margaret Eaton, Richard Kemp and Keith Ross.

Briefly, while talking of leadership change I want to talk about my predecessor Phil Woolas. He has a deep and genuine interest in local government and has helped fashion a consensus for change and translated this into a White Paper and important legislation. I spoke to him yesterday. Some of you may know he has now moved to DEFRA. He said that his first question from his new private office wasn't how do you take your coffee or how do you like your speeches? But what shoe size are you? So the next time you see him he will be in a brand new pair of bright green size eight wellies.

He has left me with an array of things to deal with - CSR settlement discussions, council tax pressures, equal pay, local government reorganisation, new performance framework, and three pieces of legislation in Parliament. It is a great job! Without doubt one of the best in Government. But the in tray is - shall we say interesting!

I will build on his devolutionary work and will also try to deliver his definition of devolution which is 'as a shift from we take the blame and you take the credit - to you take the blame and us taking the credit! I trust you see the new team in DCLG as worthy and welcome successors. For the first time ever I believe we have a Secretary of State, Hazel Blears, who has not only been an elected councillor but also a council officer. You will see her commitment to local government when she will speak to your conference on Thursday.

From the Local Government and Public Involvement in Health Bill to the technical development of multi year funding to the Lyons report and the Quirk review as new Ministers we must pick up and will advance - substantial work in progress that gives us the basis on which to build the legislative financial policy and performance framework for the long term future of local government. And of course at the heart of this construction must be local area agreements - overhauled so that elected councillors can lead the way with other agencies in delivering their vision for the area and delivering services or developments required. Overhauled so that local people make a greater constructive contribution. Overhauled so that you have greater than ever stability and flexibility for financial planning, performance measures and public accountability. Overhauled also so key national priorities are delivered locally. So the majority of councils who are doing a good job can get on with doing it.

So over the coming months I want to discuss with you, as local government leaders, how and how far we can advance, extend and strengthen the local area agreement approach.

As you would expect given my five years in the Treasury I also want to discuss with you and lead a wider debate to extend the role local authorities can play in boosting the jobs and prosperity of your areas.

Sir Michael Lyons report rightly underlines the important role local authorities have in economic development. Like him I see this linked to the wider concept of place-shaping.

I see this economic role as connected directly to the unique community leadership role of local authorities - experts on the needs of their area, accountable to the people in their area, capable of aligning the interests and visions and efforts of other agencies serving their area.

That's why during my time at the Treasury, we introduced new trading and new prudential borrowing powers, and powers for local authorities to improve the economic well-being of their area.

That's why we encouraged innovation through Business Improvement Districts, through Urban Regeneration Companies, local strategic partnerships and enterprise areas.

That's why we created LABGI and why we launched the Local Enterprise Growth initiative supported by the introduction of the fourth economic block of Local Area Agreements.

Our emerging analysis is showing that globalisation and technological change will increase specialisation, increase returns to innovation and higher-level skills and increase the advantages of size and scale.

This means further devolved decision making and freedoms are required for regions and local areas. First to respond to rapidly changing economic circumstances. Second to deal with persistent pockets of deprivation or sluggish economic performance. And third to allow every area to develop their fullest possible potential.

One of my final acts at the Treasury was to finish the Sub National Review of economic development and regeneration, which the Chancellor had commissioned last year, and I hope we will be able to publish shortly.

As you would also expect - given my period in the Treasury - I want to warn you that we face a tough funding period ahead. The financial settlement we expect in the CSR will be tight. The discipline we expect on council tax will be suitably tight.

I have been directly responsible for departments and agencies with an early CSR settlement of -5% real terms, each year.

Managing longer term and tighter financial settlements means there is both the greater opportunity and greater the imperative for innovation, efficiencies, shared services, better and collaborative procurement, greater flexibility and more joint planning and pooled budgeting.

I want to work with you at the LGA - and others who can contribute - on how to advance in all these areas.

Let me turn to the wider challenge of change.

Many of the priority concerns that the new Prime Minister has set out in recent months - from affordable housing to community cohesion; from an environmental care to a neighbourhood influence on health care - all require strong local leadership and reforming approaches tailored to local areas.

Beyond the 'what' and 'why' of public policy and services, you have also heard Gordon talk about essential reform of the Law.

Last year he called for 'a reinvention of the way we govern'. Ten days ago- when he became the new Labour Leader - he went further:

"Government" he said "giving more power to Parliament; local government and Parliament giving more power to the people.... Local government strengthened with new powers - local communities empowered to hold those who make the decision to account".

Today he will spell out in his first statement as Prime Minister to Parliament specific proposals to pursue this vision.

We need to renew belief in politics:

• with representative democracy - national and local - remaining at the heart of our society and political system.
• to put greater powers of challenge and change in the hands of people.
• bring more decisions that matter to them more within their reach.

This isn't and can't be an abstract constitutional debate conducted in the op-ed pages of broadsheet newspapers. You will have all read Gordon's speech at Manchester and his statement in the Commons today.

It creates new opportunities for local government:

• To renew the relationship between local and national government, with clear rights and responsibilities on both sides.
• To renew the relationship between local councils and local communities with a clearer duty to be accountable and residents better able to question and challenge and play a part in decisions affecting their area.
• To renew relationship between elected local authorities and other local agencies with a more pivotal part in the scrutiny and joint service planning.
• To renew the relationship between local councils and people who can contribute so much to your areas - voluntary sector, young people, faith groups, business - a town hall of all the talents.

Around the country there are already exceptional examples of councils showing how this could be done. In too many cases they are just that - exceptional. And in too few cases do those beyond the inner networks of local government policy know about them.

Finally I would like to talk to you as one elected representative to others. I am glad that my first formal invitation to the LGA is to the General Assembly. I see election as a special form of public service - and a vital form of community involvement.

There are 20000 elected councillors across the country. But we need more willing to stand. We need a wider and more representative range of people to serve, especially - but not exclusively - through our democratic political parties.

People are interested in the issues that affect them. They do want a say. But too often they see politics as remote and carried out in institutions they don't really understand by people they don't much like or really trust.

So part of the renewal of our political life must be a redefining of politics itself.

Politics at any level is after all - people who want to see change, joining with others to exercise influence to make change happen.

And we can make such links between civic or community activities and political involvement stronger and clearer. That's why amongst the reports of today's conference I am particularly interested to hear about the session for the Councillor Commission - whose work is of long term importance to us all.

I asked for advice from a very experienced figure in local government how I should approach this speech. They said "obviously it is early days but try to give them some declaration of intent". So here it is:

• I will consult you.
• I will challenge you.
• I will take some decisions you don't like.

But I am - and I will remain - completely committed to local government.

Speech by John Healey MP on 3 July 2007.

Biography of John Healey MP, Minister of State, Department for Communities and Local Government

John Healey was appointed as Minister of State at the Department for Communities and Local Government on 29 June 2007.

Since 2002 John Healey has worked at the Treasury, first as Economic Secretary and then later as Financial Secretary. From 2001-2002 he served as Parliamentary Under Secretary of State for Adults Skills at the Department for Education and Skills.

He has previously served as a member of the Education and Employment Select Committee and Parliamentary Private Secretary to Chancellor of the Exchequer. He has been Member of Parliament for Wentworth in South Yorkshire since 1997.

John Healey was born in Wakefield and educated at Lady Lumley's Comprehensive School, Pickering, and at Peter's School in York and Christ's College, Cambridge. Mr Healey worked in the voluntary sector from 1984 to 1990 with the Royal National Institute for the Deaf, the Royal Association for Disability and Rehabilitation and MIND campaigning to improve rights and services for disabled people.

From 1990 to 1994 Mr Healey worked in communications for Issue Communications, a campaign company, and the MSF Union. He was Campaigns Director for the TUC from 1994 to 1997. Mr Healey has also been a part time tutor at the Open University's Business School.

Mr Healey is married with one child and lives in his constituency in Rotherham