Councils should be less risk-averse and more prepared to innovate, says an Audit Commission report. Only one-third of single-tier and county councils and one-quarter of fire authorities are involved in extensive innovation says the report, Seeing the light: Innovation in local public services. Yet innovation, rather than incremental improvement, is the key for local authorities in meeting growing public expectations and financial pressures adds the report. The commission says there are four key stages of innovation for councils, namely – identifying opportunities; embedding creativity; taking well-managed risks; and sharing innovative practice. Chairman Michael O'Higgins said efficiency was about ‘working smarter' and innovation could ‘bridge the gap between public expectations and limited resources.'