Report urges councils to share more services

The New Local Government Network (NLGN) also advocates the creation of a national platform, possibly in the form of a website, to help authorities search for partners and let others know what services they can offer. Shared Necessities: the next generation of shared services , says that so far councils have concentrated on "low hanging fruit" in the back office and for discreet or niche front office services, but that the 26% grant cut in the Comprehensive Spending Review demands that they do much more. It says that with back office functions accounting for just 8.9% of total spending, even if councils were able to save up to 40% in that area it would account for just 3.6% of the total; and that a more realistic expectation is 1.8%. This requires a more aggressive approach to sharing services, moving into more front office functions and placing a burden of proof on why a service cannot be share, rather than why it could. The report also recommends the creation of a national platform to provide information and increase market liquidity, and more extensive use of place-based budgeting to facilitate shared services between different public bodies and private sector partners. Other recommendations include: - adequate funding and incentives for local enterprise partnerships, so they can support the building of shared services; - that local authorities investigate the potential for invest-to-save bonds to finance the implementation of shared services; and - councils should look into the long-term integration of services with neighbouring authorities. It says that recent changes in government policy and technology should help to overcome some of the barriers. The introduction of a General Power of Competence, under which local authorities can do anything unless specifically prohibited by legislation, should help to overcome the risk aversion and legal uncertainty in implementing new ideas. Also, advances in computing are helping to overcome some of the problems with standardisation, data security and networking. Tom Symons, one of the report's authors, said: "These are tough times for local authorities, but a narrow focus on how best to make efficiency savings will be insufficient if they are to handle the lasting impact of spending cuts. Those councils that boldly go beyond the back office when considering shared service agreements will emerge in time as leaner and sharper organisations better able to deliver the services people need." This article is published by Guardian Professional. For updates on public sector IT, join the Government Computing Network here.