Give councils greater financial autonomy, says LGA after releasing assets pilot results

The Local Government Association has called on ministers to give councils more financial autonomy, after releasing the initial results of a pilot scheme that examined smarter use of assets such as town halls, depots and education facilities.

The joint LG Group/Department for Communities and Local Government Capital and Assets Programme (CAP) looked at how 11 local authorities were planning to consolidate their own assets and team up with other parts of the public sector such as the police, fire authorities and the NHS.

The CAP has developed a nationwide interactive map, containing examples of new approaches to managing public assets. The map can be seen here.

Initiatives highlighted by the programme include:

• Worcestershire County Council found there were approximately 39 buildings within Worcestershire that are used by public sector partner organisations in the delivery of training and conference activities. These are now being reviewed in order to rationalise them and ensure better use.
• Cambridgeshire County Council’s early investigations suggested that up to £200m in savings could be made over a ten-year period if the county’s public sector linked up and shared assets.
• In Hampshire, initial business cases for two specific areas suggested that area reductions of 36% were achievable from a selection of public assets when considered collectively, leading to 50% reductions in running costs. The various organisations are looking at new governance arrangements to implement this approach and to extend it across the county.

Cllr David Parsons, Chairman of the LGA’s Improvement Board, said: "In response to cuts to their budgets councils have taken steps to find new ways to save money to minimise the impact on frontline services. The CAP report provides graphic evidence of the kind of measures being replicated in local areas right across the country.”

Cllr Parsons said the size of cuts to council funding were too big to make up through efficiency measures alone but he claimed councils had responded well, with £1.6bn in savings achieved last year by sharing services and improving procurement.

“Not every council asset represents an opportunity to make savings,” he added. “Some generate valuable ongoing income. Others like parks, sports facilities and cemeteries cost money but provide essential services to local communities. Many opportunities are available though and councils are using their local knowledge to lead the way, not only saving millions by consolidating their own assets but helping other local and national service providers to spend public money more efficiently.”

However, Cllr Parsons warned that local authorities could “only go so far on their own”. He said: “We need all Government departments to tear down the silos and give local areas more financial autonomy so that councils and other service providers can be linked up to save money and make services better and more convenient for residents.”

The original eleven pathfinders were Cambridgeshire, Durham, Hackney, Hampshire, Kingston upon Hull, Leeds City Region, Leicester/shire, Solihull, Swindon, Wigan and Worcestershire.

The second phase of the CAP programme will be wholly owned by the LG Group, which is looking for 12 new "pathfinder" local authorities “to explore and demonstrate innovative ways to save money and improve services through better use of public sector capital assets”.