Local government is gaining brownie points by forging ahead of other public bodies in meeting its efficiency targets, according to latest figures. As Michael Burton reports Local government has come out smelling of roses regarding efficiency savings. The DCLG last week announced that English authorities were ‘on course’ to deliver ‘a further £1.3bn’ in savings for the current financial year. These follow £1.1bn last year and £760m in 2004/5. The figures are based on LA ‘forward-looking efficiency statements’ and, if proved accurate, mean local government is on course to deliver its Gershon target of £3bn by 2007/8. Local government minister, Phil Woolas, commented: ‘The figures are significant and show that, if delivered, the Gershon target will be met 12 months early. ‘This is good news and demonstrates the positive approach taken to efficiency – these savings could be used to improve frontline services for communities or to keep down council tax increases. But, he added, ‘there is still work to do and I expect local authorities to maintain their momentum and continue to strive for greater efficiency’. The biggest savings are in adult social services, corporate and procurement. The figures build on the mid-year update figures from December 2005, which indicated that local government would achieve £1.1bn in 2005/06. They exclude efficiency gains for schools, police and fire authorities. Their publication coincided with separate figures from CIPFA last week, outlining local authority budgets for the same year, 2006/7 (The MJ, 15 June). These show that average spending rises, at 4.5%, are in line with council tax rises of average 4.5% and government grants/business rate rises of 4.9%. It is possible that efficiency savings have fed into budgets and helped avoid what was feared as a ‘black hole’ in finances, but as yet, this is not proven. As part of the local government efficiency agenda, all local authorities in England are required to submit Annual Efficiency Statements to the DCLG, which are formed of two parts. The terminology sounds like something out of a Harry Potter book or perhaps even Alice In Wonderland since the two parts are called the Forward look and Backward look statements. Unsurprisingly, one looks forward and the other back. The civil servants must have spent ages coming up with those names. l The Forward look is for authorities to set out their strategy for making efficiency gains during the spending review period – to the end of March 2008; an estimate of the value of gains expected to be achieved during the forthcoming financial year; and the key actions planned to realise them. l The Backward look is for authorities to set out the value of efficiency gains actually achieved during that financial year and the activities which were undertaken to release them. Said LGA chairman Sir Sandy Bruce-Lockhart: ‘This report shows that town halls up and down the country are leading the way on reducing bureaucracy, and are set to accelerate the amount of savings they make in future.’ n
