What is best value?

Best value provides a framework for the planning, delivery and continuous improvement of local authority services. The overriding purpose is to establish a culture of good management in local government for the delivery of efficient, effective and economic services that meet the users’ needs.

Under best value, each local authority has a duty to "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". This improvement involves consideration of costs, making the most of money spent, and making sure that services meet the needs of communities and authorities' priorities.

Legislation on best value

The legal requirements on councils are set out in the Local Government Act 1999. View the Local Government Act 1999 at the website of the Office of Public Sector Information (OPSI). The requirements have been amended over the subsequent years and the most recent circulars can be found on the website of the Department for Communities and Local Government (DCLG). Visit the DCLG's resource on best value publications.

The components of best value

The main features of the original best value regime were:

• an annual performance plan 
• a five-year programme of best value reviews
• the annual publication of a council’s performance against a government-defined set of best value performance indicators (BVPIs)

The White Paper, 'Strong local leadership: quality public services' (2001) signalled a change to this regime. Audit and inspection became part of a Comprehensive Performance Assessment (CPA) of each council. The amount and nature of inspection varied depending on the council's performance. This marked a change in emphasis – continued in subsequent circulars and guidance – to a more targeted approach. Councils categorised as 'excellent' or 'good' in the CPA were exempt from the requirement to produce a separate performance plan. The programme of best value reviews has also evolved with an emphasis now on improvement plans that emerge from the CPA process.