Councils must think radically – Baillie

Thursday, February 18, 2010

Scottish councils have been challenged to think radically about service design and delivery by the Accounts Commission for Scotland

In its annual overview of councils' performance, local authorities are praised for their improved performance, but, the Commission warns, their future budget position is expected to be substantially more difficult as demand for services increases.

But councils have come out fighting, claiming that councils are already ahead of the game and that there is "nothing new" in the Commission's report.

The Commission calls on councils to develop a fresh approach to the way in which they prepare budgets and plan services to be best placed to generate the efficiencies and savings required.

Commission chairman John Baillie says: "Councillors have difficult decisions to make. They urgently need more accurate and relevant information so they can properly weigh up options before deciding how to use the money, workforce and other assets available to them.

"More effective workforce planning and management and further progress on asset management and procurement are also essential. And the Commission is again emphasising the need for significant improvements in performance management and reporting."

Shared services, streamlining, better information about costs and performance, tight financial management and honest self-evaluation are all highlighted by the Commission as playing a part in the way forward as finances tighten.

COSLA President Pat Watters reacted angrily to the report: "It tells us nothing new and councils are already ahead of it in terms of their thinking and planning," he said.

"Councils are well ahead of this report and have been scenario planning for over a year in relation to their budgets.

"Councils are well aware that the financial picture is becoming more and more challenging and that demand for services is increasing and that this combination will be extremely difficult. Demands for council services have always outweighed the ability to pay for them but we have officers and elected members managing that process to protect frontline services which is the main concern of us all."

Watters went on to say that shared services were not a panacea: "there seems to be a real misconception that Shared Services are the panacea – they are not. Yes, they are important and yes, they have a part to play along with efficiencies but they are not the be all and end all. The financial reality facing councils is that with forecast reductions of 12 per cent over the next few years what councils will need to look at is re- prioritising policy commitments – shared services and efficiencies cannot meet this shortfall on their own."

However, the Conservatives were quick to side with the Accounts Commission. Shadow Cabinet Secretary for Finance and Sustainable Growth Derek Brownlee said: "Especially in these tough economic times, it is vital that we get value for money from every penny of taxpayers' money. This report suggests that this is not always the case.

"That is why the Conservatives have pushed for a transparency revolution in public spending, so that we can all see where the money goes.

"We also have to start asking some probing questions about the role of local government. That is why the Conservatives argued for the External Review Group to be set up to take a radical look at where savings can be made, how the front line can be protected but equally to challenge how services are delivered – and by whom."