Council heads for commissioning role
Barnet LBC could reduce itself to a mere commissioning hub for services as the financial squeeze forces councils to look beyond Gershon-style efficiency savings.
Author: James Morris |
Barnet LBC could reduce itself to a mere commissioning hub for services as the financial squeeze forces councils to look beyond Gershon-style efficiency savings.
The unprecedented structural overhaul, which sparked angry protests by Unison, could result in all services being contracted out to other public sector bodies, the private and the voluntary sectors.
It comes amid new evidence that the tight financial settlement and rising demand for services is forcing cash-strapped councils elsewhere into axing vast swathes of senior management.
Barnet programme director Richard Grice said: “The status quo is no longer an option. Our financial position is getting weaker and at some point that will start to impact on services.
‘Not a mass outsourcing agenda’
“We are potentially talking about configuring our services so there will be more partnerships with the public, private and voluntary sector. This is not a mass outsourcing agenda.”
The council outlined its aims in the Future Shape of the Council report and has instructed PricewaterhouseCoopers (PwC) to carry out a six-month £250,000 feasibility study.
The report outlines plans to “shrink the council’s direct service delivery role [and] focus the council’s energy on activities where it alone can add value”.
PwC public sector partner Chris Buttress told LGC: “Councils are swiftly coming to the point where they can no longer respond to efficiency pressures in a traditional way – shaving off a few percent on each service they deliver.”
Tenders
Barnet’s plans come after Essex County Council looked to the outsource model, envisaging an eight-year £5.4bn contract in which the private sector delivered most services. It is understood that BT, Capita and Mouchel are all submitting tenders.
James Morris, chief executive of Conservative-leaning local government thinktank Localis, said that while there was no one model appropriate for all councils, there would be a trend to fundamentally re-evaluate structures.
“While the last 10 to 15 years in local government have been about performance management, the next wave will be about innovation,” he said.
The pressure on council finance has been shown by a raft of councils embarking on job cutting programmes, with senior management a prime target to be culled.
Management posts cut
Notable examples include Barking & Dagenham LBC which announced the scrapping of its regeneration department, a move that will see 18 senior management posts cut.
Westminster City Council revealed last week it will slash its executive board from 20 senior managers down to seven.
Barking & Dagenham chief executive Rob Whiteman said: “We need to make £13.6m worth of savings next year in order to balance the books and by moving from five to four departments we estimate we will be able to save more than £1m.”
Society of Local Authority Chief Executives & Senior Mangers chairman, Derek Myers, said it was inevitable that management posts would not be immune, but warned services would suffer if too many posts were cut.
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