Local Area Agreement (LAA) are three year agreements between a local area and central government. The LAA describes how local priorities will be met by delivering local solutions. It also contributes to national priorities set out by the Government. 

All local area agreements are being renegotiated with new agreements in place by June 2008.

The LAA is negotiated between the local strategic partnership (LSP) and the regional Government Office (GO). The LSP consists of all the key players in a local area who deliver services. The Local Authority is the lead partner in the LSP. 

The Local Authority negotiates the LAA on behalf of its LSP and is the only body accountable to government. Key players in a LSP include the Fire and Rescue Service, Police and Primary Care Trusts (PCT).

The LAA allows services to be delivered in a more joined-up way by bringing together partners from the public, private and voluntary sectors. The LAA pools the streams of funding each partner into a single pot. This avoids duplicating effort and wasting money.

The LAA will be at the heart of the new performance framework. All outcomes delivered by local government, whether in partnership or alone, will be in the LAA.

The agenda for the LAA is set out in the sustainable community strategy SCS. The SCS is a long-term vision for an area and its people. It aims to create a sustainable community by addressing economic, social and environmental needs.

The LAA will be the delivery plan for the SCS. It should also link to the local development framework (LDF). Government have made proposals to integrate the consultation requirements of the SCS and the LDF. The ‘place-shaping’ role of councils means the integration of an area’s key strategies is important.

Until the sign off of new LAAs in June 2008 Local Authorities have an opportunity to review the priorities in their SCS with their partners and citizens. A robust SCS will ensure the LSP will be in a strong position to negotiate its LAA. It will also ensure a stronger local focus to the targets set.

Only upper-tier authorities are required to have a LAA but District Councils must be included in its development. District councils are also ’statutory consultees’ for the upper-tier SCS.

Developing an LAA in a two-tier area is complex. An effective partnership approach is essential to agree core priorities and avoid duplicating or conflicting targets.

The LAA will contain clear commitments. The council will be accountable to the local people. Ward councillors will help residents scrutinise the decisions of the council and its partners. This means local people will have a role in influencing targets and standards.

Along with council services, council leaders will also be responsible for services delivered by partners under the LAA.

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