Central funding falls 26%

The spending review has confirmed that central government funding to councils will fall by around 26% over the next four years, but councils still have to wait before the detail of the impact on them is known. While much has been published about the scale and scope of the budgetary cuts facing public service, perhaps the coming weeks offer a chance to focus attention on the opportunities it presents to rapidly and decisively transform the way in which services are accessed and delivered.

Derek Nott  PA's Local Government expert comments: "The financial crisis presents a real watershed moment for public services, a chance for local authorities to redefine and recast their relationships: with central government by securing greater autonomy and proving confidence in self-regulation; with customers and communities by engaging them in a process of co-production and service prioritisation; and with other public and third sector bodies by using their powers to delegate and trade as well as outsource within the sector."

Graeme Walker PA's Local Government expert adds:"Responding to the fiscal challenge is not easy, responding to the transformation opportunity may be even harder. Organisations need to adopt an integrated approach  which joins-up public service, reduces functional silos and designs the organisation from the outside-in - with processes aligned with the diverse needs of customers served. If councils are to embrace the challenge and succeed, positive and decisive action is quickly required or the opportunity will be lost."

To speak to a local government expert about what the spending review means for you, please contact us now.