As the more-than-inevitable handover of power from prime minister Tony Blair to chancellor Gordon Brown looms, the questions on the lips of local authorities are, just what exactly are Mr Brown's plans for local government?
What did the chancellor think of the local government White Paper and Bill? And will he support it in its current state? Or will he infuse his economist's outlook into the finer details, using the Lyons inquiry to help him shape its final form?
In December, Mr Brown tasked Sir Michael with launching a consultation looking at developing housing, transport and skills policy, reporting back to him in March in time for the Budget.
The report will build on the recent Eddington review on transport, the Barker review on planning regulations and the Leitch review on skills.
Sir Michael said the extension of the inquiry would provide a ‘valuable opportunity to advise the chancellor on how the Government might make best use of the recommendations for local government'.
He hints that he will be taking a closer look at regional responsibilities, which mirrors the views of prominent Brownites, who favour a regional approach. Referring to the Eddington, Baker and Leitch reviews, he says: ‘There are a number of themes which can be identified across the reports, and in other recent work.
‘One of the biggest questions concerns the governance of these services – where and by whom decisions about policy and funding are made – and the respective roles of local, sub-regional and regional bodies.
‘All three reviews note the need to recognise that economic activity does not respect administrative boundaries, and that isolated decisions within these boundaries may not reflect the reality of the modern economy, or the costs and benefits which can spill over to other places and people.' The focus would appear to be very much on reviewing the role of regional bodies, and their importance, and possibly reducing the emphasis on ‘double devolution', the phrase coined by former local government minister, David Miliband, which placed the future role of councils and communities at the forefront of the agenda.
Despite Mr Brown stating he wanted to put devolution of power from central to local government at the top of his agenda, with a ‘radical shift of power', senior government officials advised this should be taken with a pinch of salt.
His address to the Labour Party Conference was described as his ‘most explicit' yet, in term of local government, but officials warned it could simply be a U-turn to ‘tick boxes' previously overlooked as he stepped up his bid to become next Labour leader (The MJ, 28 September 2007).
Perhaps, most tellingly, when he addressed the conference, he chose to shy away from the contentious subjects of the Blairite agenda for city regions, or his supposed belief in regionalism.
The MJ also exclusively reported in July how two leading Brownites, the economic and finance secretaries to the Treasury, Ed Balls and John Healey, had hinted that the chancellor would drastically alter course on local government, if he became prime minister.
Writing in a New Local Government Network policy paper, both shunned city regions and called for an enhanced role for regional development agencies, and a revival of the idea of elected regional assemblies.
In the pamphlet Evolution and devolutions in England: How regions strengthen our towns and cities, the two say they are also very sceptical of the view that city-wide, elected mayors are the way forward for regionalism, before adding that the success of the London model might not so easily be applied to other parts of the country.
Indeed, it has been clear to see how problems have erupted where elected mayors are in place, and could be substantial fodder in an argument against their implementation if Mr Brown was to take up the post of prime minister.
Mr Balls, also voiced his support for localism to bring about a new culture of local democracy in a 2002 NLGN pamphlet New localism: Refreshing the centre-led relationship by penning the foreword.
The authors, Dan Corry and Professor Gerry Stoker, called on the Government to take ‘a leap of faith' in its moves to decentralise power to local authorities in the UK, and to establish a new culture of local and regional democracy.
And Mr Balls said the Government was devolving power to those ‘best placed' to make decisions to deliver agreed goals and standards.
Speaking at the NLGN annual conference this month, local government minister, Phil Woolas, described how local government's biggest ally in Whitehall over the issue of localism was Mr Brown, and he once again raised the issue of regional assemblies by slamming those who criticised the system.
‘We see regional government as a devolution from central government to local government,' he said. ‘It's easy for opponents to portray regional assemblies as negative, claiming they suck power up from local councils. But that's not the case.'
A local government insider tells The MJ that until the chancellor takes up his new post, if indeed he does, it is impossible to predict what changes will be made and whether the Blairite agenda might be followed – or thrown massively off kilter.
‘Perhaps a good point to note is that when an economist takes charge, they are not natural devolvers,' he says. ‘They are about making sure the administration delivers in an efficient, cost-effective way.
‘One way of doing this is by allowing local bodies to take more control over efficiency, rather than a willingness to hand over power.'
So, it would appear that all everyone can do is wait. Wait to see whether Mr Brown becomes next Labour leader, and wait to see what his plans for local government are.
Whatever the outcome, the next few months will definitely be interesting.