By David Williams
5 October 2010
A study of public sector organisations in Birmingham has
found that services can be improved and costs cut through a combination of
early intervention and place-based budgeting.
The report, published today by the Localis think tank, is
the latest in a string of studies to advocate cross-agency, Total Place-style
local budgets, which are widely expected to feature in this month’s
Comprehensive Spending Review.
On October 1, a Local Government Association paper set out
more than £20bn of savings that could be made by devolving spending powers to
councils and joining up public spending at a local level.
The Localis report outlines a ‘total neighbourhood’
approach, in which separate government funding streams are connected up and
used to fund community-based programmes that save public money in the long
run.
Examples in Birmingham include a project working with
individuals with drinking problems, which has led to a drop in alcohol based
anti-social behaviour of 54%.
The report, which has been backed by Total Place architect
Lord Bichard, also found that £2m spent on children aged under 10 with
behavioural problems could save £97.3m over 15 years.
Author Barry Maginn, said place-based spending must be at
the heart of the government’s approach as it puts its Big Society thinking into
action. He said: ‘Achieving these goals will require a radical change in the state,
and in mindset.
‘But in the current climate, is there any other option but
to be radical?’
The LGA study found that integrating health and social care
budgets could save £6bn a year, while other forms of joined-up working could
yield a further £5bn.
De-regulating local government could lead to savings worth
£4.5bn a year, while a further £3bn could be saved on benefits bills through
targeted local action on those not in employment, education or training, or who
are unable to work.
Around another £1.5bn could be found through various smaller
reforms such as devolving tasks currently undertaken by quangos, changes to bus
subsidies, and cutting out duplication in offender rehabilitation.
