Competition and contracting in the transition from CCT to best value: Towards a more reflexive regulation?

Following publication of the government's proposals for a statutory framewo rk of Best Value, and the introduction of regulations increasing the flexib ility of CCT pending its abolition, this paper examines the relationship be tween the compulsory regime and its likely successor. First, the paper sugg ests that the Best Value framework is likely to impose a range of regulator y, monitoring and enforcement constraints similar in effect to the formal r equirements that operate under CCT. Continuity with Conservative policy wil l be reinforced practically through transitional arrangements for the gradu al abolition of CCT and the phased introduction of its replacement. Second, the paper argues that contracting is likely to continue to have a signific ant role under the new regime as the natural adjunct to the voluntary compe titive processes that will be the preferred management tools for securing i mprovements in service performance. Open tendering and public-private secto r partnership arrangements, both of which imply contractual governance, are given explicit priority in the consultation document over benchmarking, pe rformance indicators and other comparative public management mechanisms. Th ird, the paper argues that local authorities are likely to want to retain a nd develop contracting arrangements that potentially permit a degree of con trol over service provision that might not be available were more radical s ervice-providing alternatives to be adopted, involving the complete transfe r of functions outside the public sector and/or their vesting in independen t companies. Finally, the paper assesses the transition from CCT to Best Va lue from the theoretical perspective of responsive and reflexive regulation . Following a brief account of the reflexive failures of CCT, the paper arg ues that, although the Best Value framework is characterized by inherently reflexive processes involving self-review, consultation and standard-settin g, its relative success is likely to depend ultimately both on the tightnes s with which legislation is drafted and on the manner of its practical inte rpretation, implementation and enforcement.