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Tony Oakshott looks at the latest efficiency figures from local authorities published last week and placed on the CLG website. Somewhere deep in some venerable academic institution a young researcher is doubtless already embarking on a pioneeeing analysis of local government efficiency statements. There is easily enough information to fill a doctorate and, in time, it might even make a book of its own. For the moment, the rest of us without such a guide will have to pore through the hugely-detailed efficiency statements available on the Communities and Local Government website, the latest – 2007/8 – of which appeared last week. The Annual efficiency statements – 2007-08 backward look include detailed spreadsheets which set out the efficiency gains achieved in each sector by every local authority, and the quality crosschecks provided to demonstrate that service quality has not deteriorated as a result. The published items are unedited by the CLG, it says, and the results are not subject to review or endorsement by the department. They will also be the last to be published in this form since, for the rest of the CSR period, councils will instead publish the total net value of ongoing cash-releasing gains forecast and achieved through National Indicator 179. In a nutshell, the latest efficiency figures show that local authorities continue to exceed their targets. Local government minister, John Healey, in praising them, said they were, as a result, well placed to weather the economic downturn. He added: ‘Councils should be praised for making efficiency savings which have exceeded expectations. This is an excellent achievement, and one that will stand them in good stead in this global economic downturn, where obtaining value for money is more important than ever. ‘Over the past three years, councils have managed to save the equivalent of £129 off the average household council tax bill. In the current economic climate, with families tightening their belts, this is a real help, and a clear sign that councils are doing their bit. ‘Over the next three years, I will be looking to councils to make almost £5bn efficiency savings. ‘This is in the interest of local authorities, which can use these savings to cut council tax bills or invest in local services. But it is also what the public, rightly, expects, which is why I want to see efficiency information included with council tax bills.' Latest figures published last week show that over the past three years, councils have saved £3.45bn – the equivalent of £129 off the average Band D council tax bill. Council savings include redesigning services to focus on people's needs, sharing back-office functions, managing assets better, and streamlining tendering processes to encourage more competitive bids. Annual efficiency statements – 2007-08 backward look As part of the local government efficiency agenda, during the 2004 spending review period (2005-06 to 2007-08), all councils in England have been required to submit annual efficiency statements to the CLG. These submissions were formed of two parts – the forward and backward look statements. The forward look was for authorities to set out their general strategy for making efficiency gains; an estimate of the value of new gains expected to be achieved during the forthcoming financial year; and the key actions planned to realise them. The backward look was for authorities to set out the value of ongoing gains sustained from previous years; the value of new efficiency gains actually achieved during that financial year; and the actions that were undertaken to release them. The documents published last week are the 2007-08 backward look statements and spreadsheets which set out the efficiency gains achieved in each sector by each local authority and the quality crosschecks provided to demonstrate that service quality has not deteriorated as a result. The published items are unedited by the CLG and the results are not subject to review or endorsement by the CLG, it says. The spreadsheet of gains achieved also shows, for each council, the target for cumulative efficiency gains to be achieved by the end of 2007-08. The target is equivalent to 7.5% of councils' 2004-05 baseline expenditure – and at least half of this amount was required to be cashable, ie, directly release cash resource which could be reallocated to meet local service priorities or hold down council tax. As part of the transition to the next spending review period, councils are allowed to carry over the value of any ongoing cashable efficiency gains achieved in excess of the 7.5% target for total gains. The spreadsheet shows the value of gains eligible to be carried forward by each council on that basis and the net total for gains to be recorded as achieved in the 2004 spending review period. These statements are the last annual efficiency statements to be submitted by councils. During the 2007 CSR period (2008-09 to 2010-11) councils will instead report the total net value of ongoing cash-releasing gains forecast and achieved through National Indicator 179.

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WHITEHALL

Councils stack up their efficiency gains

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