Cash-strapped council services need radical rethink, says regulator

17 Feb 10
Radical thinking is needed about the provision of council services in Scotland, a local government spending watchdog advises
By David Scott

18 February 2010

Radical thinking is needed about the provision of council services in Scotland, a local government spending watchdog advises.

In a local government overview report, published today, the Accounts Commission says action will have to be taken urgently if councils are to cope with the increasing pressure on budgets.

‘The scale of the budget challenge demands radical thinking about service design,’ the commission stresses. It points out that the impact of the recession – reduced income and increased demand for some council services – is already being felt.

The commission recalls that in April 2009 the UK Budget projected real-terms reductions in Scottish spending of 7%–13% between 2009/10 and 2013/14.

It warns: ‘While definitive figures must await future Spending Review outcomes, subsequent estimates indicate that the outlook may, if anything, be even more difficult.

‘Councils therefore need to prepare now to deal with the extremely challenging combination of increased demand and reduced resources.

‘Incremental approaches to achieving savings and efficiencies cannot be expected to be sufficient to address this.’

Calling for a new approach to service design, the commission says councils need to think ‘urgently and radically about services – what they are delivering, how they are meeting needs and what are the most effective and efficient ways to deliver them’.

In a foreword to the report, controller of audit Caroline Gardner says the emphasis must be on improved results and value for money.

Councils need to focus on understanding and managing costs, longer-term resource planning and seeking the most effective ways of providing vital public services. ‘To support this there needs to be a stronger focus on risk management, which involves being aware of the risks associated with change and ensuring these risks are managed properly,’ Gardner states.

The commission found that many community planning partnerships are ‘overly bureaucratic’ and not focused enough on local people.

It acknowledges positive developments in local government but stresses that councils now have to focus on the scale of the challenge ahead. It says councils must do more to demonstrate cost effectiveness, efficiency and competitiveness across their services. Significant improvements are also needed in performance management and reporting.

Commission chair John Baillie said: ‘Councillors have difficult decisions to make. They urgently need more accurate and relevant information so they can properly weigh up options before deciding how to use the money, workforce and other assets available to them.’

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