UK 2009 Budget is a “Missed Opportunity” says Civica : 
Support from centre needed for further efficiencies and reform

Civica believes that while the Government’s 2009 Budget appears reasonable in seeking more than £600 million efficiency savings from local government in the current spending cycle, the opportunity has been missed to build the foundations for longer-term, sustainable service transformation and creating a step change in the cost of service delivery.

Civica believes that the complexity of local government and the challenges it already faces as a result of the current economic situation means that it cannot be subjected to arbitrary national savings targets.

Val Earle, Civica’s Director of Transformation Strategy, commented: “The real breakthrough in efficiency savings that the Government desires will be made through more detailed  understanding of authorities’ individual needs - backed by investment in upskilling authorities’ management and in focused change programmes to drive the successful execution of service reform and organisation-wide efficiencies.
“Arbitrary savings targets and relentless reporting are not the way to deliver effective, lasting change. This Budget is a missed opportunity for the Government to spell out a viable framework and allocate funding for inspiring system-based efficiencies and service innovation among Britain’s local authorities.”

Interpretation
The Civica group considers that achieving the £9 billion annual public sector savings target for 2013-14 will require strategic changes in business service transformation, workforce deployment, and citizen engagement as well as organisational IT procurement, whether at the individual, multiple, or unitary authority level. Hitting this target also depends on the Government successfully allocating revenues from digital TV switchover to further drive next generation broadband. This infrastructure upgrade is fundamental to boosting citizen self-service, thereby greatly reducing avoidable contact for local services.
These changes will in turn depend in large part on the Government giving practical support as well as promoting technology-based business change, particularly providing training and development programmes for local government senior and departmental management in change management, programme management and commercial skills.  Addressing these technology integration and skills gaps are fundamental to delivering the service streamlining and transformation that underpins the achievement of ambitious savings targets.

The Government’s Operational Efficiency Programme report identified considerable scope for savings through streamlining back office and IT operations, collaborative procurement, improved asset management and sales, property, and local incentives. However, it is inescapable that these changes will require sustained Government support for local authorities and their partners to develop and hone commercial, information management, and process re-engineering skills.  

Civica supports the pragmatism shown in announcing the ‘Total Place’ savings programme but these measures only continue the valuable work of local government’s ‘Beacon’ authorities scheme and the IDeA in promoting best practice in service delivery and efficiency. This type of realism has to be accompanied by more sympathetic leadership and support from the centre for structural reforms if the planned ‘big picture’ efficiencies are to be achieved.