External regulation and best value in local government

Best Value has been presented by central government as a means of promoting local diversity and innovation. However it contains a large superstructure for regulating the behaviour and performance of local authorities, through performance indicators, audit, and inspection. The characteristics of thes e regulatory instruments are analysed and their potential strengths and wea knesses are assessed. The instruments overlap not only with local authoriti es' own internal management processes, but also with each other. Therefore it is concluded that the costs of regulation may outweigh the benefits.