The tight financial settlement heralded by this month's Comprehensive Spending Review (CSR) poses tough challenges for local government over coming years. But, far from doom and gloom, there is every reason to be optimistic about the way in which organisations can respond. The first imperative is to manage the transition from where we are now to the new reality of much more limited growth. Unlike the 1980s and 1990s, when tight settlements were the norm, relieved only by occasional, more generous announcements – shortly before general elections – the last seven or eight years have seen a run of positive settlements to which many authorities have become accustomed. The challenge for local government now is to absorb the changes and adapt to the new climate while, at the same time, avoiding a ‘crash landing' that would inevitably impact severely on services. Looking to the medium term, the new financial constraints should serve to sharpen strategies for efficiency and value for money. Communicating clear, positive messages to staff, partners and the public will be critically important. It is absolutely vital that authorities resist the very real temptation to blame the Government for every difficult decision they face. The message should be – these are tough challenges but we are confident we can manage them successfully. However, it is important that authorities do more than talk a good game. Practical responses will also be essential. This CSR takes us back to familiar territory – ‘back to the future' we might say. A series of tough years are in prospect, but we have the toolkit – strong financial management, value for money and efficiency – to tackle them and show just how far local government has come. n Steve Freer is chief executive of the Chartered Institute of Public Finance and Accountancy
