Councils’ ‘commissioning skills gap should be closed’
Author: Richard Johnstone, Public Finance |
In a report examining local authorities’ response to spending cuts, the think-tank predicted that almost all council services could be contracted out to organisations from across the public, private and voluntary sectors.
In place of the ‘traditional model’ ? where authorities do everthing from waste collection to road maintenance and social care ? partnerships with the private and voluntary sectors are being developed, the Catalyst councils report concluded.
However, it warned that a lack of local commissioning skills remained a ‘barrier to innovation’.
Localis called on both the government and the Local Government Association to establish a commission to ‘close the commissioning skills gap’ in councils. This would help town halls understand what they could and could not do under competition rules such as European Union procurement directives, and would assume responsibility for a national training programme.
The report, produced in partnership with Capita Symonds, also urged both councils and external providers to become ‘more mature’ and enter into strategic partnerships to make outsourcing deals work.
A survey undertaken for the report found that more than a third of council leaders and chief executives believed all local services could be outsourced.
The poll of 73 council chiefs also revealed two-thirds believed that making use of external expertise and skills was the biggest potential benefit of working with private or voluntary sector partners, or mutual organisations. More than half ? 53.4% ? also felt that they would lead to more innovative services
Localis chief executive Alex Thomson said: ‘The financial situation faced by local government is serious and the status quo is not a viable option.
‘But I’m confident that if everyone is willing to play their part ? the public sector to be more receptive to new ideas, the voluntary sector more open to working in collaborative alliances, and the private sector more of a risk sharing partner ? then we’ve got a decent shot at continuing to enjoy high quality public services in the years to come.’
Oliver Letwin, minister for government policy, welcomed the report. Speaking at the launch yesterday, he said: ‘Localis should be commended for producing a report that not only points out the options, as well as the pitfalls, open to councils, but which also in its recommendations describes some of the key barriers that need to be overcome for local government to pursue this agenda further.’
Lord Shipley, a Liberal Democrat peer and adviser to the government on cities, added: ‘The proposals for simpler procurement and a stronger role for co-operatives and mutuals will resonate with local government leaders who must innovate to deliver the services and security so many of their residents need.’