NLGN calls for common sense if Treasury & Cabinet Office efficiency review is to really add value

November 24, 2003

The New Local Government Network has called on the Treasury and Cabinet Office to show common sense if any real value is to come from a joint review into whether major efficiency and cost savings can be made within public services.In a formal response to the joint Treasury/Cabinet Office consultation Efficiency Review: releasing resources to the front-line, the independent think-tank has welcomed government attempts to identify where such savings might arise, but stressed that implementation should not be a short-term measure and that the risks should be weighed up alongside the opportunities. Observing the need for this to be done intelligently, NLGN director, Dan Corry remarked:“The Efficiency Review cannot be considered in isolation from other government initiatives which recognise that centralism does not deliver high quality, efficient services. It is particularly important that this review reflects on the Government’s commitment to deliver greater Freedoms and Flexibilities for high-performing local authorities”.With moves towards standardisation characterising Whitehall’s position on efficiency and thereby appearing incompatible with greater local autonomy, the NLGN response calls on the Government to make clear distinctions about which areas are more suited to some form of standardisation and which are more suited to local discretion. For NLGN, three main dangers arise from forcing everyone to do the same:“It is vital that local authorities have some rights to choose, otherwise they will be less able to innovate, and some good ideas and options will be overlooked. Moreover, it may lead to the market exclusion of smaller players and new entrants”.NLGN – which works closely with more than 20 local authorities and 40 private sector partners – believes that the Government is right to look for savings. Its consultation response however, states that it should not expect to do so more in local government than in other areas such as policing or health, nor should it be unrealistic about the timescale in which it hopes to secure any savings. The NLGN response also reflects on different directions that might be explored:“The Best Value regime offers great opportunities for encouraging councils to think imaginatively about service delivery and there are also possibilities created by some models of partnership working at a local level and cross-boundary local authority working”.

All NLGN enquiries to Ian Parker – 020 7357 0116 / 07947 640780

Notes:1. The New Local Government Network (NLGN) is an independent think-tank, seeking to transform public services, revitalise local political leadership and empower local communities. 2. NLGN’s response to the Cabinet Office / HM Treasury consultation Efficiency Review – releasing resources to the front-line can be found in the ‘Consultation Papers’ section at www.nlgn.org.uk3. Details of the Review are available at: www.civilservice.gov.uk/reform/efficiency.asp


Explore More