Overhaul of efficiency and improvement support for councils

Date published: 18/03/2008

Local Government Minister John Healey has confirmed the first step in an overhaul of improvement support for councils, as they work to increase efficiency and improve services to release £5billion, which can be used to reduce pressure on council tax bills or invest in local services.

He praised councils for being on track to make £4.2bn annual efficiency gains this year - well ahead of the £3bn target.

Mr Healey announced the allocation of £185m through council-led Regional Improvement and Efficiency Partnerships, to pioneer innovative ways to transform and improve services, and cut waste.

He also published a new prospectus, outlining the new approach for supporting councils to make efficiency gains. The document:

• For the first time draws together the improvement support that is available from central and local Government to make it easier for chief executives, chairs and others to find the support they need, when they need it.
• Commits central and local Government to simplifying the improvement support for local government by making changes to the way that they deploy their improvement resources.

Communities and Local Government and the Department for Health are also announcing joint funding totalling £4m today for RIEPS to spread best practice in local health services in every region, and to promote the personalisation of health, wellbeing and social care.

Mr Healey said: "I congratulate councils for achieving such significant efficiencies in such a short space of time. It shows what can be achieved when authorities rethink how they work and pursue innovative ideas.

"Because gains have been made in the past, doesn't mean more can't be done. The drive for high quality local services and good value for money is rightly coming less from central Government and more from local communities. The public expects councils to explore all avenues available to achieve this.

"For our part, I am streamlining the support on offer and giving money to the regions to support the delivery of new LAAs and make it easier for councils to release another £5bn of efficiencies, by working together and changing local services for the better.

"It is now for councils to take up these opportunities, go further in cutting waste, and deliver the world-class services that local people rightly expect them to do."

Councillor David Shakespeare, Chairman of the LGA's Improvement Board, says: "The prospectus is an important step in simplifying the support available to councils to help them deliver excellent and efficient public services. Local authorities need to access the right support at the right time by working together on improvement and efficiency, although local solutions are needed for local problems.

"By developing regional improvement and efficiency plans, councils will be able to make wide reaching efficiency savings and the new regional partnerships will be key to developing, identifying and rolling out good practice across and within regions and supporting work between councils."

The new prospectus is published as figures from a local government procurement survey show that the range of support available is increasingly being taken up by councils but there is still more to do to ensure all make best use of this valuable resource.

The announcement comes as the whole of the public sector is being asked to deliver greater value for money. In this year's Budget, the Chancellor confirmed that local authorities will be expected to contribute to the efficiency target for the whole public sector of £30bn by 2011.