By Vivienne Russell
25 June 2009
Councils can no longer turn to Whitehall and expect it to fill funding gaps, Communities and Local Government Secretary John Denham told the CIPFA conference.
In the minister’s address, one of his first keynote speeches since his appointment earlier this month, Denham said town halls needed to focus on delivering real value for money to their taxpayers.
"Although overall government current spending will rise in real terms under this government, the days when councils could claim that every problem could be answered by a cheque from Whitehall are over," he told delegates on June 25.
"Local authorities will need to make each taxpayer’s pound work harder than ever. Indeed, councils must be able to promise residents that every taxpayer’s pound will work as hard for them as taxpayers worked to earn it in the first place."
The secretary of state reiterated the need for efficiency savings, highlighting the £42bn spent on the procurement of goods and services each year.
Procurement projects could be used to generate wider social and economic gains.
"This money can just buy services – or it can be used to ensure the service providers also provide apprenticeships and other training opportunities," he said.
Procurement funds could also be used to encourage businesses, especially local businesses, to provide innovative solutions that deliver better value for money, he added.
"This is a huge opportunity for local government to show the rest of the public sector the way."
