Councils advised to prioritise spending and outsource more services, KPMG/Localis report suggests

Councils should set self-imposed targets to reduce expenditure by around 20% by 2011.

 

Iain Hasdell, Partner and UK Head of Local and Regional Government at KPMG, comments:
"With almost 10% of UK GDP flowing through local government in one way or another, councils are at the forefront of the reform of public finances. Many parts of local government are innovative and progressive. However much of local government is still struggling with modernisation. This report offers insights and ideas for those in local government that are interested in a fast journey to excellence.”

James Morris, Chief Executive of Localis, comments: "Councils must not be afraid to make tough decisions. Some are beginning to lead the way and it is up to others to take up the challenge and prioritise funding to match up with their core functions. Councils must innovate more in order to deliver high quality services to local residents.”

The report also suggests a number of other aspects of policy which should be assessed and where appropriate, changed. These include:

  • The Comprehensive Area Assessment (CAA), which is often felt to be inaccessible and sometimes holds limited value to local residents, must be looked at. Rather than only using a centralized approach - performance would benefit from also being monitored from the bottom up by citizens, and it would be helpful to establish more dialogue with local residents.
    Rather than only using a centralized approach - performance would benefit from also being monitored from the bottom up by citizens, and it would be helpful to establish more dialogue with local residents.
  • If they have not already done so, councils should reassess all investments based upon their priorities in the local area. High risk investments should be focused on the main priorities for a local area. Councils should seek to achieve their investment objectives through innovative approaches such as risk pooling.
  • Councils - rather than Whitehall - should commission new partnerships. These should focus on mutual interests along with pre-determined meaningful outcomes - which can be achieved through the use of fluid budgets. This should allow services to be more personalized around the requirements of the end user.
  • Councils should set self imposed targets (if not already set) - in the region of 10% of gross revenue - to be raised locally. This could be aided through the use of existing financial powers such as TIFs, the new Innovation Fund and prudential borrowing more extensively.

09 November 2009



-ENDS-


For further information please contact:
Katrin Boettger, Senior Manager, KPMG Corporate Communications
Tel:  0207 896 4232  Mobile: 0782 4475168 Email: katrin.boettger@kpmg.co.uk
KPMG Press Office: 0207 694 8773



About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with 11,500 partners and staff.  The UK firm recorded a turnover of €2.2 billion in the year ended September 2008. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.



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