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"Any loss of staff must be supported by a commitment to exploit process efficiency ."

KAREN CHERRETT, LOCAL GOVERNMENT EXPERT, pa consulting group

Delivering effectiveness and efficiency in local government

Councils across England fear spending cuts will force them to shed around 25,000 jobs.

The announcement of planned job losses in their tens of thousands brings home the view that to repay public sector debt, Local Authorities (LAs) will have to do more than they have ever done before. It requires a fundamental shift in the sector's thinking in respect of how and what services are directly delivered or whether more can be commissioned from private and third sectors as part of a growing LA managed service approach.

Some would say that the prospective cuts simply bring the public sector in line with the rest of industry. However we must not forget that the rest of industry exists to make a profit and can flex and choose what it delivers to its customers. LA's do not have this freedom and flexibility, nor indeed do its customers - you cannot choose which authority empties your bins nor would it make economic sense to offer the choice. However engaging communities in choice about what discretionary services they choose for their area is something that can, and is, usefully being explored by some councils. Offering choice over services is not easy however and there will always need to be a balance between scale, need and basic entitlements of its citizens.

To avoid job losses undermining an acknowledged fragile recovery, any loss of staff must be supported in at least equal measure by a commitment to exploit process efficiency and increase the impact of joint and shared service delivery. This requires democratic and union leaders to take a far more pragmatic look at their options for the future:

Is it better to have more customer engagement even if it means less direct democratic control?
Is it better to have fewer but more sustainable jobs than constantly risk employment unrest and decreasing membership?

The change also requires the next government to reduce bureaucracy and increase the financial and governance freedoms that will grant the sector a fair crack at commercial competition. Only by levelling the playing field will the public sector be able to strike a true balance between the best of its own talents combined with the tactics of the commercial world to provide ever more flexible, focused and value adding public services for the future.

To speak to a consultant or to find out more about our thinking on efficiency and effectiveness, please contact us now.

Delivering effectiveness and efficiency in local government

Councils across England fear spending cuts will force them to shed around 25,000 jobs.

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