Win–Win? Early experience from local area agreements

Local Area Agreements (LAAs) are a mechanism for delivering improved outcomes for local people, through recasting governance relationships between central government and localities and between local agencies. This paper assesses the effectiveness of LAAs in reforming these critical relationships, drawing on research carried out in 2004–06 into the round one and two negotiations. These early negotiations highlighted the complexity of ‘central–local relations’; a coherent approach across Whitehall was hampered by differences in departmental culture and in the nature of relationships with local delivery agencies, while the new role for Government Offices was ambiguous. Nevertheless the early LAAs represented a major step forward in terms of local–central relations. Within localities, the process of developing LAAs proved challenging and highlighted governance weaknesses; however in the main participants report that partnerships have been greatly strengthened as a result. These early experiences provided rich learning, and policy has developed significantly since the pilots. At the time this research ended there was not yet any conclusive evidence on the balance of costs and benefits. However, over time LAAs have the potential to bring about a transformation in governance relationships and, in turn, the delivery of services to address cross-cutting outcomes.