Staying afloat as cuts bite

I spent a few hours the other day with the senior management team of a planning and regeneration service. The session was to think about how they would deal with significant budget reductions up to 2020.

As the LGA reported in the Future Funding Outlook 2014 (see also Under Pressure – how councils are dealing with cuts), “ With social care and waste spending absorbing a rising proportion of the resources available to councils, funding for other council services drops by 43% in cash terms by the end of the decade…’. This can’t be done by snips here and there – the well of efficiency savings has almost run dry. It will need a fundamental rethink about the service delivery.

Myself and a planning peer facilitated the discussions. Everyone in the room knew that they alone can’t find the answers and that many further conversations will be needed ‘upwards’ with the council about ways of working, appetite for risk, local priorities and the politics of making difficult decisions. And ‘downwards’ with team members (most good ideas come from within).

Firstly, I was pleased to see that this was up for discussion. It’s not an easy thing to start but they understood that a head in the sand approach wasn’t sensible. The Director knew that the ‘low hanging fruit’ had already been picked; nothing particularly easy or obvious was left. the team was keen to start thinking about the long term approach to the budget pressures they anticipated over the next few years. They were ‘ owning the problem’.

We started by looking at the current core services and challenging whether they were really necessary. What is it that you do that delivers the councils priorities? What would happen if you stopped? I mean really, what would happen if you stopped. OK, if you can’t stop, can you do it differently?

Inevitably the conversation went beyond the costs of the activity, and savings if not done (or done differently) into customer expectations and political risks. Stop doing site visits on all but majors (use google earth)? Local Development Orders for 3-walled extensions (we approve most anyway)? Enforcement only for high priority breaches? Stop plan-making and rely on the NPPF?

Eyebrows were raised at these initially unacceptable thoughts. But that was the point. Accepting that implementing any of these might also bring risk – at some point something would go wrong, Is it time for a shift in the balance of risk and what is the political appetite for this? How long can we afford to mitigate against risks to the degree we do now? Of course the politicians are crucial in this – everyone talks about how difficult decisions will need to be made. Public expectation will be managed (which is difficult in a time of economic recovery elsewhere).

Then we did crystal ball gazing. Imagine it is 2020. What does the service look like? This was interesting, and of course there are many unknowns, not least national and local elections, and probably more changes to the planning system (will there still be one) and local government finance.

These were some thoughts.

  • A commissioning council with proper accountability for running business units, including (popular, this one) breaking the relationship between a service and the non-negotiable central recharges. You pay how much for legal advise and there isn’t even a planning specialist? Directors should be proper, accountable, business managers free to choose to buy the print and design service, IT, legal advice, from the best/cheapest supplier.
    Self certification of planning decisions where they accord with the plan?
  • One consent (Penfold anyone?) for planning and building control?
  • The principle of ‘customer pays’ embedded even more – so deregulated planning fees are a must.
  • Developers/landowners financing action area or masterplans?
  •  Enforcement investigations for non priority breaches – well then the complainant pays
  •  Combine development management and building control into a ‘pre shovel ready’ and ‘post’ teams?
  • Devolved decision making to neighbourhood forums or parish councils (which already happens in Arun)
  • Upwards decision making to a combined strategic authority?
  • And the nirvana of a paperless office – all communications by email or the cloud

And more ideas. Some would need changes to legislation, some corporate decisions, and some are within the gift of the Director and team to deliver. Some areas we didn’t have time to go into – ironically the main one being around costs! But it is a start.

Hats off to those involved. These are difficult conversations with implications for people’s jobs. Not just their employment, but work that they like, value, believe in and want to continue with.

We didn’t get anywhere near to a service costing 43% less. But some things were said ‘out loud’ , ideas are buzzing.

I’m interested in what other councils are doing on this – are you having similar conversations? If not, what is your strategy for the years ahead? PAS would like to develop some work on this If you’d like to work with us on this, please let me know alice.lester@local.gov.uk

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s