Best value

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Last updated 31 August 2004

Best Value is a key element of the Government's programme to modernise local government. The aim of Best Value is to ensure local authorities continually improve the ways that they function, having regard to economy, efficiency and effectiveness. Best Value is a statutory requirement for local authorities, including LEAs.

The Local Government Act 1999 sets out the legislative framework. The Government has published further guidance on performance planning and reviews under Best Value. Local authorities are required to carry out a regular programme of review of their functions. These reviews will ask authorities to:

• Challenge why, how and by whom a service is provided

• Compare performance with that of other authorities

• Consult with service users, the local community, etc.

• Use fair competition, wherever practical, to secure efficient and effective services.

These 'four Cs' are the principles of Best Value.

Applicability by schools

Best Value is not a statutory requirement for schools. It does not apply formally to governing bodies in their use of delegated and devolved budgets. Governing bodies are, however, required to set targets to raise standards. They are expected to provide good-quality schooling and to spend public money wisely. Schools spend a large amount of the financial resources used to educate young people. In recognition of this, the statutory guidance on LEA schemes for financing schools requires schools to demonstrate that they are following Best Value principles. LEAs should call for schools' governing bodies to submit, with their annual budget plans, a statement setting out steps they will take to ensure that expenditure reflects the principles of best practice. This is commonly known as a Best Value Statement.

For more information on Best Value and related information published by the Value for Money Unit, please visit their website.

Management implications

Head teachers should consider the following main features of Best Value in schools:

• The existence of a programme of performance review which will aim for continual improvement. School development plans and post-inspection action plans can be developed to satisfy the requirements for review

• Reviews should follow the principles of the 'four Cs':

  1. Challenging why, how and by whom a service is provided
  2. Comparing performance against other schools
  3. Using mechanisms to consult all stakeholders, especially parents and pupils
  4. Using competition as a means of securing efficient and effective services

• The development of performance indicators and targets which will provide a clear expression of a school's performance, taking national requirements into account

• The inclusion in school development plans of: