Councils must have a 'presumption to share', says thinktank

Councils must take a more innovative approach to shared services if they are to deliver required efficiencies and protect their frontline, says a new thinktank report. While there has been some research to show that local authorities are willing to share frontline services more than ever before, many still see sharing in terms of the back office. In Shared Necessities: the next generation of shared services, the New Local Government Network (NLGN) says that the best case scenario in using this approach will only deliver up to 3.6% of savings on expenditure, and only 1.8% in most cases. The report says local authorities should adopt a "presumption in favour of sharing services". Tom Symons, one of the report's authors, says: "A narrow focus on how best to make efficiency savings will be insufficient if local authorities are to handle the lasting impact of spending cuts. "Those councils that boldly go beyond the back office when considering shared service agreements will emerge in time as leaner and sharper organisations better able to deliver services." The NLGN recommends councils look towards sharing areas including senior management and virtual centres. They say that new shared services models can help local authorities develop practical solutions to sharing and organisational change. One idea floated by the thinktank is the development of a market place similar to a dating site, where councils and partners can share and trade services. It also recommends the piloting of what the author's call "invest to save" bonds to finance service redesigns. "Sharing services also brings questions about the nature of local authority boundaries to the fore," says Symons. "We are keen to preserve existing democratic structures. "There is a vital debate, however, to be had about the potential for the majority of council services to be merged together across economic geographies. It is also apparent that the 'market' for shared services is underdeveloped." The NLGN report includes a toolkit for councils looking for guidance. "There are implications for the nature of local authority workforces, and potential for reform of organisational structures to more generalist pools of employees, coupled with targeted incentives, to help combat the 'human' barrier to sharing," Symons adds.