Best value

Best Value was government policy in the United Kingdom affecting the provision of public services in England and Wales. In Wales, Best Value is known as the Wales Programme for Improvement.

Best Value was introduced in England and Wales by the Local Government Act 1999, introduced by the UK Labour Government. Its provisions came into force in April 2000. The aim was to improve local services in terms of both cost and quality:

A Best Value authority must make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness (LGA 1999, section 3[1]).

The range of activities affected includes almost all local authority functions, including for example social services, environmental health, housing and planning.

The first details of Best Value were set out in the ’Twelve Principles of Best Value’ announced in June 1997 (DoE 1997). The bill to provide the statutory framework was introduced in the 1998/9 parliamentary session.

In the period between announcement and introduction (May 1997 and April 2000) the Government sponsored 37 voluntary council ‘pilots’, 22 of which contained a housing element. The purpose of the pilots was to “test elements of the best value framework, and assess the extent to which actual improvements in service quality and efficiency have flowed from the new approach” (DETR 1997a). The rationale for the introduction of Best Value was summarised as follows:

Under Compulsory Competitive Tendering service quality has often been neglected and efficiency gains have been uneven and uncertain, and it has proved inflexible in practice. There have been significant costs for employees, often leading to high staff turnover and the demoralisation of those expected to provide quality services. Compulsion has also bred antagonism, so that neither local authorities nor private sector suppliers have been able to realise the benefits that flow from a healthy partnership. All too often the process of competition has become an end in itself, distracting attention from the services that are actually provided to local people. CCT will therefore be abolished (DETR 1998, s.1.5).

Thus, the rationale for Best Value emphasised three points: the failure of Compulsory Competitive Tendering; the importance of partnership in service provision; and the adverse effect of competition as a prime objective.

Under the leadership of John Major the Conservative government pursued Compulsory Competitive Tendering almost as a dogma, often against the wishes of local government. This led to an uncomfortable stand-off between the two, with CCT regulations being produced in increasing detail, and sometimes extending further than would have been the case in the private sector. The government was unambiguous about what was required – issue of tender, receipt of tender, selection of provider.

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