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Nicholas Dobson and Stephen Chalcraft suggest the tough spending round is an opportunity to magic a crisis into an opportunity. Good news. The chancellor has now put us all out of our misery. For, we at least, now have a better idea of what we're in for. But then there's the bad news. He's done this only by a major injection of misery – 7.25% cuts a year for the next four years, with most of the painful decisions delegated locally. At least, that's the half-empty way of looking at it. But, faced with the inevitable, there are two main approaches. We can either indulge in the luxury of spiralling downwards. Or we can try our hands at a spot of alchemy. In other words, turn the problem into an opportunity. And that's precisely what the more creative in local government are already doing, and will be carrying forward, as the effects of the Comprehensive Spending Review (CSR) become clear, sink in and bed down. For, it will be vital as we move forward for all authorities and public bodies to examine critically just what they're there for, and how they can best deliver this for the benefit of their public paymasters. That, of course, is easier said than done – because the familiar becomes invisible as it melts into the backdrop of local authority life. Some tough questions will inevitably, therefore, need to be asked as to the nature and shape of service architecture across the public realm. What exactly do people in a given area actually need, and how can this best be delivered? Easier asked than answered. But what is clear is that all parts of local authority operations will need rigorous review in the light of objective advice, if they are to justify their piece in the overall service jigsaw. For instance, are all existing layers really necessary? Are some managers, in effect, acting as postboxes for managers below them, who in turn are mere postboxes through to the underlings who actually do the work? Does every service wheel really need reinvention at every authority, or are there as yet untried opportunities for shared services in various manifestations? Are identified constraints really cultural or territorial? What about the area service picture – the welter of public organisations and resources which make up the local service infrastructure? Is there anything to prevent unlocking these synergies? The 16 new community budget pilots should give some of the answers, and offer a routemap into the new thinking that will inevitably be needed. And that new thinking is where the opportunities lie. The localism agenda combined with the emphasis on Big Society is set to provide new freedoms – the freedom to explore new initiatives, the freedom to exploit new ideas and the freedom to exploit new ways of working with the private sector to provide better public services. This is not going to be free of trials and tribulations, as the opportunities and challenges presented by local enterprise partnerships testify, but out of the CSR should arise innovative funding and delivery-orientated solutions to benefit the public sector and the UK economy, generally. It is crucial, however, that all public authorities adapt quickly to these challenges, since stark local variations present a challenge as much as an opportunity in the brave new world of strategic collaboration and increased efficiencies. Indeed, if local variations between the ‘haves' and the ‘have nots' are to be successfully addressed, it is imperative that the recovery journey begins now, and that real leadership is provided which embraces coherent strategies based around fresh thinking, innovation and co-operation. This will require authorities to place a premium on talent. Public authorities are, of course, set up to benefit the public, and not those within them. And while most in the sector will readily agree with this, such consensus can quickly become hostility when personal patches come under threat. However, good people at all levels can be surprisingly adaptable, given the right support. For human beings are complex, with a spectrum of – often subliminal – talents. And no-one was created to perform only their current role. Folk can often flourish if they are freed from their usual tramlines. Square pegs can sometimes also find their square hole. This is provided, of course, they get some top-quality leadership and support. But, sadly, as the CSR made clear, there will still unavoidably be blood. It will be essential for authorities to ensure that those no longer needed – and not willing or able to retire – are given all the support they need to try and reposition in what will undoubtedly be a difficult market. Dr Nicholas Dobson is a senior consultant with Pannone, specialising in local and public law, and communications officer for the Association of Council Secretaries and Solicitors. Stephen Chalcraft is a partner and head of public sector with Pannone Conference details In association with The MJ – and endorsed by ACSeS – law firm, Pannone LLP is running a major conference in Manchester on 1 December to explore some of the themes in this article. Some key local government and other movers and shakers will be giving some pivotal practical insights into a range of austerity issues. These include the economic backdrop, regeneration, place-based budgeting, the city-region, major partnerships, governance and not least, the range of different austerity prescriptions in the service pharmacopeia. Details are as follows: Click here for the website invitation and the Conference Brochure Invitation

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WHITEHALL

Time for a spot of alchemy

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