14 May 2004
Spiralling public sector inflation is a deeper and more complex problem for local government than the council tax issue, the leader of Kent County Council said this week.
Addressing the CBI's public services industry forum on May 11, Sir Sandy Bruce-Lockhart said the balance of local government funding could be easily resolved by a substantial increase in the central government grant.
But he added that local authorities were under mounting financial pressures because of pay demands, increasing litigation and an imbalance between employer and employee pension contributions.
Bruce-Lockhart said local government should be more like business in taking its cue for improvement from its consumers rather than from government. He suggested that the government identify the few services, such as health and education, where there is a need for national standards, but leave the rest to local demand.
'There is no reason why a swimming pool in Kent should conform to the same standards as a swimming pool in Newcastle,' Bruce-Lockhart said.
The Kent leader went on to praise Public Service Agreements, which he said had been fundamental in encouraging departments to rethink ways of working in order to meet targets.
The forum also heard from local government minister Nick Raynsford, who said the scope for private sector involvement in public service delivery had broadened. He said Sir Peter Gershon's efficiency review was a 'real spur for activity' in helping the public and private sectors identify ways of working together.
Stelio Stefanou, the chief executive of Accord and chair of the CBI's local government panel, said business was keen to play a bigger role in service provision but added that some public sector bodies would need to improve their procurement methods to make the marketplace more robust.
He told the forum that the CBI was working with local government project procurement agency 4Ps on the possible creation of a market intelligence forum, which would help local authorities collectively create and sustain high-quality markets.
'This has the potential to be an immensely positive development,' Stefanou said. 'Local government would feel the benefit of a more stable and consistent supply market.'
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