Commercial Councils research featured in Financial Times
Author: Localis |
Localis’ latest report Commercial Councils is featured in the Financial times, with quotes from chief executive Alex Thomson:
“Research conducted by Localis, a local government think-tank, has found that almost all now share some services with another council, more than half own a trading company and, on the current trajectory, by the end of the decade all will do so.
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Alex Thomson, chief executive of Localis, who advised David Cameron in opposition, says: ?For a long time local government was essentially an arm of central government. It was a delivery arm. It had some autonomy, but it had been conditioned not to use much of it.?
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Councils may be reduced in size but become larger in scope and ambition, suggests Mr Thomson. ?It could be much smaller in terms of staff, but covering a whole range of different services and geographies . . . and [have] a massive part in fostering growth in each local area,? he says.”
You can read the article in full here ()
The research featured, Commercial Councils, can be read here. The report explores how local government has responded to austerity in the past few years, finds that many councils across England are increasingly operating entrepreneurially, both acting like and partnering with the private sector. The report finds that:
- More than half of councils (58%) own a trading company, and at the rate it is increasing, full coverage by 2020 is a possibility;
- A majority of councils (57%) operate a joint venture with the private sector;
- Without entrepreneurial activities, 8/10 councils say they would have to cut services and raise taxes
The report contends that with austerity showing no sign of relenting whoever forms the next government, and with inexorable demographic change ahead, councils should further this entrepreneurial agenda. To facilitate this, Localis recommend that:
- Councils and appropriate professional bodies increase the focus on commercial and financial skills as part of officers’ professional development;
- Councils are given ‘Earn Back’ powers to stimulate local investment in a similar vein to Greater Manchester’s devolution deal;
- The government use departmental underspends to fund a three year corporation tax holiday for new council owned trading companies to assist them in their start up;
- The General Power of Competence is expanded to other parts of the public sector to enable councils to act more like businesses.
For any more information on this publication, sponsorship or media enquiries, please email archie.maitland@localis.org.uk