Transformation Challenge Award 2014 – 2016

Transformation Challenge Award 2014-16 The Transformation Challenge Award was announced on 2 April The TCA bidding prospectus was published on 3 April. The announcement of the TCA and publication of the bidding prospectus has been preceded by a series of engagement events with local authorities and representative organisations in London. We are engaging directly with authorities, with events and presentations around the country – Wakefield, Rushcliffe, London, Dorchester, Camden, Liverpool, Newcastle.

Transformation Challenge Award Supporting the transformation agenda It is recognised that local authorities face challenges in delivering high quality services from a combination of demographic pressures, increasing user expectations, and fiscal consolidation To meet these local authorities need to re-engineer their business and redesign their services to make them sustainable over the long term. Key to achieving this is the coming together of different authorities and parts of the public sector to share staff, other resources including IT, and core services; joining with major partners in their area; and making the most of their assets. These kinds of radical changes can require upfront funding. The Transformation Challenge Award is available to provide this kind of funding, targeted at the best proposals which are likely to make the biggest difference across the country.

Capital receipt flexibility Transformation Challenge Award 2013 – 2016 Transformation Challenge Award £13 million 2013 – 2014 £320 million 2014 – 2016 £15 million 2014-15 £105 million 2015-16 £200 million Capital receipt flexibility

71 local authorities / fire and rescue authorities Transformation Challenge Award Last round of the TCA (2013-14) 2013-14 £13 million 145 bids received Totalling £66 million 31 successful bids 71 local authorities / fire and rescue authorities

Transformation Challenge Award Aims for 2014-16 Rationalised asset base Designing to be responsive to customer needs Maximising opportunities for local growth Service Re-design Partnerships with other public authorities and providers Designing to manage demand & deliver better outcomes for citizens. Business Re-engineering Collaboration across authorities of different types and places Combining operations, and pooling, sharing resources and assets

Winning bids announced Transformation Challenge Award 2014 – 2015 2014-15 £15 million A. Facilitating small district councils to share a senior management team, including any chief executive, with one or more other councils B. Supporting a small number of places which, by working with other public sector partners, can utilise funds in 2014-15 to reform services and make a return in 2014-15. 2014 2 April Bidding process opens 1 July Bidding deadline End of August Winning bids announced

Winning bids announced Transformation Challenge Award 2015 – 2016 2015-16 £105 million A. Encouraging authorities which already share a senior management team and any chief executive to go further with their plans to re-design their services. B. Encouraging places that have ambitious plans to work in partnership across the public sector and with the voluntary and community sector or private sector to re-design services. 2014 2 April Bidding opens 1 July EOI deadline End July Feedback on EOI 1 October Bidding deadline November Winning bids announced

Transformation Challenge Award Capital receipt flexibility  2013/14 Capitalisation fund (borrowing and use of receipts) and process – top sliced form Revenue Support Grant – aimed at transformation.  There is no more general Capitalisation fund or process for 14/15 or 15/16  The Government published a consultation ““Proposals for the use of capital receipts from asset sales to invest in reforming services” on 25 July 2013.  If allowed would not result in top slice of Revenue Support grant.  Responses supportive from authorities – 87% in favour of greater flexibility.

Transformation Challenge Award Capital receipt flexibility 2015-16 £200million Policy £200m of expenditure from a flexible use of capital receipts to be allowed. Permission will be given through a capitalisation direction under section 16(2)(b) of the Local Government Act 2003. The policy does not override restrictions on the use of receipts from asset sales Limits Limited to the use of capital receipts from the disposal of assets on or after 1 August 2013. The revenue expenditure will be allowed over a 2 year period from 1 April 2015 to the 31 March 2017. The direction will not specify the asset intended to be sold. Requirements Aim is to encourage additional asset sales, need not necessarily be directly related to the service reforms. Local authorities will need to show the proposed asset sales are additional to existing planned sales

For further information, please contact: transformation@communities For further information, please contact: transformation@communities.gsi.gov.uk