What now for Oflog?
Researcher
Last week the Government announced their intention to review the role of the Office for Local Government (Oflog) and pause its current work on ‘early warning conversations’, which are designed to identify local authorities at risk of failure but who have not yet raised the alarm themselves.
This is a welcome step. Oflog was established in 2023 to make local government better by increasing understanding about the performance of local authorities, warning when authorities are at risk of serious failure and supporting local government to improve itself – for example by disseminating best practice.
However, Oflog has faced numerous teething problems during its first year. This review is an opportune moment to clarify what Oflog’s role is and how it can best perform this role. Reflecting on Oflog’s first year, three key questions need to be answered.
Most importantly, what is Oflog’s role? The answer to this question has been lacking throughout Oflog’s first year. It has been described as an “enigma” and criticised for simply duplicating the work which is already being undertaken by other bodies, for example the Local Government Association (LGA) and the Chartered Institute of Public Finance Accountancy (CIPFA).
One suggestion — made previously by Re:State — is for Oflog to support the establishment of a peer learning function between local authorities, with the explicit goal of building systemic readiness for greater devolution. This would build on and provide a clearer outcome for Oflog’s current ‘support’ strategic objective. Another suggestion is for Oflog to fulfil the local audit system leader role. Witnesses to the Levelling Up, Housing and Communities Committee commented that this role for Oflog “feels fairly obvious” and was “probably more important than the other things that Oflog is presently given to do”. Whatever the review decides Oflog’s role is, the question needs to be decisively answered.
Secondly, what is Oflog’s relationship to central government? Agreeing on a clear role for Oflog is necessary to ensure its success or otherwise can be evaluated. However, it will be insufficient if Oflog is not trusted by the local government sector. According to its strategic remit letter, Oflog requires Ministers to approve any metrics added to its Data Explorer and to have first sight of any reports pre-publication. This arrangement has been criticised for undermining confidence in Oflog. As one interviewee for an upcoming Re:State report said, “Oflog is not independent which is not helpful… the perception is that it is all about feeding information up to central government”. Similar concerns were raised prior to Oflog’s establishment. Shaun Davies — the then incoming LGA chair and now MP — expressed concerns that the approach being taken was representative of the fundamental asymmetry between central and local government.
Re:State has previously argued for establishing Oflog as an independent arms-length body (ALB) to provide reassurance that decisions are being based on objective analysis rather than political motives. The review does not necessarily need to establish Oflog as an ALB, but it does need to clarify how it is related to central government.
Finally, what data is Oflog using? Underpinning how well Oflog can perform its role is the quality of its data. This has arguably been the most fraught area during Oflog’s first year, with its current Data Explorer tool incomplete and only partially covering the range of local authority activity. In April 2024 The Times ran an article ranking the performance of local authorities using data from Oflog’s Data Explorer. The article’s flawed methodology and lack of context caused anger and frustration across the local government sector. Oflog cannot necessarily be blamed for its data being used poorly and without context. Nevertheless, the affair highlighted the shortcomings of Oflog’s data and dented trust, thus undermining its ability to help local government. The review needs to set out how these Data Explorer issues are being addressed and the number of data points expanded on.
Oflog has the potential to have a real positive impact on local government. However, this will only be realised if these questions related to its role, independence and data can be answered.