Total Place approach could save us billions, say London councils

22 Jan 10
Councils in London have renewed their calls for greater independence after a report showed they could save 15% of their total budget if they were given more powers over local spending

By David Williams

25 January 2010

Councils in London have renewed their calls for greater independence after a report showed they could save 15% of their total budget if they were given more powers over local spending.

The report, published today by London Councils and consultancy PricewaterhouseCoopers, applies the methods of the government’s Total Place local spending efficiency scheme. It shows that £11bn could have been saved out of the total £73.6bn public expenditure for London in 2008/09.

 Focusing on antisocial behaviour, worklessness and care for people with chronic conditions, the study shows that more collaboration and more devolved spending could result in substantial savings.

The authors explain how youth offending could be better tackled by a council-led co-ordination of social services, education providers ranging from Sure Start children’s centres to colleges, and prison and probation services.

Focusing budgets on early intervention and making services more locally tailored could also be more efficient, the report says. Chronic care services could save as much as 18% – or £800m out of a £5bn budget – if the NHS and councils worked more closely together.

The report, Total place: towards a new service model for Londoners, concludes that these principles could be applied across local public spending. However, it says this will be possible only by bringing more spending under council control, highlighting the £5.6bn spent by a total of 156 quangos in the capital that year.

The research reveals government departments were responsible for around a third of the total spending in London in 2008/09, with the Department for Work and Pensions alone spending £11bn.

London Councils criticised the complexity of the funding system. Chair Merrick Cockell said: ‘The way public bodies are funded, and the number of different organisations working for similar or overlapping aims, unfortunately make waste inevitable.

‘However, PwC’s research has shown us a way to radically reduce London’s burden on the public purse – while still improving the services we offer. Amid the ongoing debate around the public sector funding squeeze, we will be thoroughly examining their conclusions in the hope of setting out significant reforms.’

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