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The challenge for Public sector
Based on 2015 IFS/Treasury figures
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Future of Local Government
Key facts:
•353 local authorities in England
•24 per cent local government expenditure as proportion of total managed
public spending in the UK in 2010-11
•£7.6 billion real-terms reduction in funding from central government to
local authorities, 2010-11 to 2014-15, planned at 2010 spending review
•14 per cent real-terms reduction in local authority income, 2010-11 to
2014-15, estimated at 2010 spending review
5. The risk aversive culture
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Gauging the drivers for ‘Change’
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Income Generation via Commercialisation
• 60% of income via commercial
initiatives. Aiming for 70% in 2015-
16
• Sustained 40% Budget cuts since 2010-
2015 without compromising on Public
services
• Increased support for non profiting sector
by £1.4M
• Generating £1.25M per annum via just
one of many companies it owns
• Council’s Investment Strategy Reserve
Raised £350 million worth of funding to
invest
• Expects additional income of £2M from
its investment in assets by 2018 (£1.5M
by March 2016)
• Property investment in 2013/14 generated
£1.4M to the general fund (£798K net income)
• The Council has so far spent £7.1million of its
£25million fund and generated additional
income of £530,000
Woking Borough CouncilWoking Borough Council Guildford Borough CouncilGuildford Borough Council
Other income generation case studies around theOther income generation case studies around the
countrycountry• London Borough of Camden
• London Borough of Hammersmith & Fulham
• Aylesbury Vale District Council
• Birmingham City Council
• Cheshire East Council
• Eastleigh Borough Council
• Leeds City Council
• Wolverhampton City Council
• Manchester City Council
• Nottingham City Council
• Peterborough City Council
• Portsmouth City Council
• Reigate and Banstead Borough Council
• Surrey County Council
• Warrington Borough Council
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‘AusterityAusterity’ the Force of Change
AusterityAusterity
Commercialisation
Efficiency
Strategy Innovation
Change
Saving
Service Improvement
11. “a new hope, ‘AusterityAusterity’ can be”
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Reference:
• BBC News, (2016) George Osborne warns of further spending cuts in Budget - BBC News, [online] Available at: http://www.bbc.co.uk/news/uk-politics-
35672158 (Accessed 3 March 2016).
• BBC News, (2016) Public service cuts – did we notice? - BBC News, [online] Available at: http://www.bbc.co.uk/news/uk-24454006 (Accessed 21 January
2016).
• BBC News, (2014) 'Colossal' spending cuts to come, warns IFS - BBC News, [online] Available at: http://www.bbc.co.uk/news/business-30327717
(Accessed 3 March 2016).
• Gov.uk, (2015) Sector insights: skills and performance challenges in the health and social care sector - Publications - GOV.UK, [online] Available at:
https://www.gov.uk/government/publications/sector-insights-skills-and-performance-challenges-in-the-health-and-social-care-sector (Accessed 26
February 2016).
• Hughes, A., Moore, K. and Kataria, N. (2011) Innovation in Public Sector Organisations, nesta.org.uk, [online] Available at:
https://www.nesta.org.uk/sites/default/files/innovation_in_public_sector_orgs.pdf (Accessed 26 February 2016).
• International Business Times UK, (2014) UK Government Cuts to Council Funding Puts Key Services at Risk, Warns National Audit Office, [online] Available
at: http://www.ibtimes.co.uk/uk-government-cuts-council-funding-puts-key-services-risk-warns-national-audit-office-1475519 (Accessed 26 February
2016).
• Local.gov.uk, (2015) Productivity and Commissioning | Local Government Association, [online] Available at:
http://www.local.gov.uk/productivity/-/journal_content/56/10180/5785720/ARTICLE (Accessed 26 February 2016).
• Managers.org.uk, (2016) Austerity is a good time to transform public services - CMI, [online] Available at:
http://www.managers.org.uk/insights/opinion/2014/december/austerity-is-a-good-time-to-transform-public-services (Accessed 21 January 2016).
• National Audit Office, (2013) Financial sustainability of Local Authorities, [online] Available at: https://www.nao.org.uk/wp-
content/uploads/2013/03/Local-Authority-Exec-Summ.pdf (Accessed 26 February 2016).
• Parker, S. (2016) Council services will never be the same again | Simon Parker, the Guardian, [online] Available at:
http://www.theguardian.com/society/2016/jan/05/council-services-cuts-devolution-community (Accessed 26 February 2016).
• Robinson, M. (2015) Transport bears the brunt but foreign aid balloons by 21%, Mail Online, [online] Available at:
http://www.dailymail.co.uk/news/article-3333203/Transport-local-councils-business-bear-brunt-foreign-aid-balloons-21-Autumn-Statement.html
(Accessed 26 February 2016).
• www.grant-thornton.co.uk, (2016) Rising to the challenge, The evolution of local government, [online] Available at: http://www.grant-
thornton.co.uk/Global/Publication_pdf/rising-to-the-challenge-the-evolution-of-local-government.pdf (Accessed 21 January 2016).
