Different models and different methods for different times

Editor's Notes

• #2: We are facing an unprecedented financial challenge , having successfully reduced the cost of service delivery to accommodate the reduction of government grant by 28% over 2 successive years, expecting to be able to manage a further x% grant reduction in 2013/14 and to have to cope with further spending reductions anticipated for at least three years after that. Efficiency alone is not enough. Increasingly Councils are adopting different models of service delivery and employing new methods as they seek to address the difficulties presented by the government’s spending constraints. This presentation aims to give an overview of the trends we are seeing in local government with reference to recent publications and known practice and prompt a discussion about the sort of council we are and the sort of council we need to be/become if we are to be successful in future.
• #3: This approach is described in a publication called “Catalyst Councils” and is essentially a policy approach recommended by those on the right wing of the political spectrum . “ Potential service options”: include outsourcing, shared services, joint ventures, strategic partnering. This approach explicitly recognises the importance of economic growth to the success of localities; this is not just about the cost of delivering services or a debate about which services should be cut. The idea of the “John Lewis” model – a greater use of social enterprises in service delivery has attractions for right wing politicians
• #4: The APSE publication entitled “The ensuring council” deliberately sets out to be “an alternative vision” for the future of local government. It places much more emphasis on the in house delivery of services, and spells out some of the strategic benefits which that approach allegedly delivers – for example the ability to co-ordinate resources and strategic objectives in a way which the outsourced services model does not deliver. It explicitly presents the commissioning/outsourcing model as a market orientated approach focused on individual outcomes as opposed to a more community focused approach demonstrated by the “ensuring” council. This is an arguable policy position but it usefully highlights a much neglected theme which is that there are indeed some benefits in the “in house delivery” approach. It also acknowledges that within the “ensuring council” model there are differing perspectives ( as illustrated on the next slide)
• #6: Mariana Mazzucato in a provocative Demos publication argues for a more interventionist and active role for the state in delivering economic prosperity. She does not believe that the private sector alone can deliver prosperity, with local government simply providing the “right conditions”. Her controversial ideas include reducing direct transfers to SMEs through small business rate relief , and she describes local enterprise zones as “a distraction”. She argues t hat if we are to encourage green technology in particular the state will have to take a more active role in taking action and accepting risks. Also in the area of technological innovation and creating the “knowledge” economy, the state needs to take the lead role.
• #7: The core message of this approach comes from both traditional labour and conservative viewpoints. The commission on the future of local government set up under the chairmanship of the leader of Leeds City Council set out 5 key recommendations which are outlined in the above slide. Whilst economic growth is at the core it is local authorities which are at the centre of activity and economic regeneration, and the approach is balanced with attention to social policy objectives. The Rt Hon Lord Hestletine of Thenford CH was the main author of “no stone unturned” which came up with 89 recommendations. He sees local enterprise partnerships at the centre of ensuring the economic prosperity of local areas. Controversially he also recommends all two tier local authority outside London should pursue an approach towards unitary status.. Partnerships and collaborations between local authorities which reinforce economic growth are to be supported. Areas should bid competitively for funds for economic growth in their areas, ( the funds are consolidated from various government departments ) and there should be more devolution to the private sector. He emphasises skills as the foundation for skills and prosperity, and changes to the skill sets of civil servants and the way the civil service operates.
• #8: A theme of structural reform is taken up by the NLGN “The localist Manifesto” publication which explicitly advocates combined authorities. These would give powers to councils which formed city-wide or shire wide combined authorities. These would be a new strategic layer of governance designed to drive economic development and facilitate shared services. There is a hint that this idea is already being taken forward through the Chancellor’s Autumn statement, “ In recognition of the importance of partnership working, the Government will also be supporting ( the implication is financially) local authorities that wish to create a combined authority or implement other forms of collaboration (for example, shared management)” . The localist manifesto also advocates compulsory voting, which is not likely to be taken up, and introduces the possibility that local authorities could bid to deliver services currently delivered at a national level ( eg court administration, benefits, and the skills agenda)
• #9: The picture of Joe Chamberlain reminds us that Victorian Britain, there was an age of municipal entrepreneurship. It was an age of investment ( sewerage, road and rail infrastructure) which dramatically improved the health of populations like the City of Birmingham Those who advocate a more entrepreneurial approach ( APSE published “Municipal Entrepreneurship” in 2011) stress that this is right for our times. Since 2011 it has become even more essential. Commercial skills are important for contract design, procurement and negotiation. They are essential to increase income, which helps to balance out loss of government grant. Additionally and importantly, new homes bonus and business rates growth and both providing new incentives for local authorities to give much more attention to economic and housing growth in their areas, because success in these areas underpins their own economic success .
• #10: The “Future Councils” publication aimed to look at three main scenarios for the future: 1. California : a world where local government becomes weaker and struggles to balance the books, the public become more assertive and active and local government fades into the background but some raise more income and back office shared services are commonplace. 2. United Provinces : Councils band together to promote growth and efficiency – areas like Bristol and G Manchester move to federal governance arrangements 3. Recessions : There is a prolonged failure of growth. Some councils become technically insolvent. Others divest their services to the private sector. The big society does not take off. The publication envisages the emergence of four types of local authority responses: It classifies the councils in the following ways: Residual: most services externalised. Main role is market management Clustered :pooling to manage regional inward growth. Commercial : selling services to other Councils. Pay as you go for residents Lifestyle : promote own brand identity eg green, healthy, cultural
• #11: The discussion paper “ A new model for public services ” by the University of Birmingham helpfully puts the different approaches into a “Typology” set out above The document points out that an area that is less frequently discussed is the importance of democratic legitimacy and how that is translated into “agency” turning resources into outcomes through effective political and managerial leadership. The next slide demonstrates how the different models relate to the retention and distribution of internal and external power.
• #13: The Future Councils publication , in envisaging the different approaches ,contains this summary table of what it thinks local government will look like by 2015.
• #14: There is ( as the “New model for public services?” document highlights perhaps a tendency for local government to look at structures and at tangible service delivery models rather than address the democratic issue - the inter-action of local government with its local community. It is just as important to look at how these interactions are changing. Jocelyn Bourgon described well the shift in emphasis; In this slide government acts on its own, through the exercise of legitimate authority. It concentrates on performance( of services) and compliance ( with regulation). Acting alone: when government can frame the issue on its own When government can achieve the outcome on its own When government has reasonable knowledge of the impact However in acting in this way if fails to unleash the potential of a more “emergent” and unpredictable way, but which, through more dynamic engagement with its local population, produces additional benefits – enabling people to influence action, exercise choice, and enjoy the benefits of transparency and greater accountability ( see next slide)
• #15: A dynamic approach holds great potential as it Allows for a broader range of choices in combining govt authority and the collective power of society Enhances the frequency and diversity of interactions within the system thereby enhancing the timeliness reliability and relevance of the information Captures new knowledge not otherwise available to government Stimulates creativity and innovation Allows multiple stakeholders to frame issues together creating the possibility of a stronger commitment to action Allows to aspire to results not available through govt acting alone Government can harness the power of networks to achieve results by connecting actors, solutions and choice opportunities as a means to achieve public goals
• #16: The document “Unlocking local capacity” picks up this notion of active citizenship and stresses the importance of the approach in an age where local authorities cannot any longer afford to do all the thinks they have, over time, come to do. It also makes a good case for the benefits to individuals and communities of greater co-production and personalisation of services. It is also good for places, producing greater community cohesion and wellbeing and a shared sense of pride and culture in the local area.
• #17: Other ideas are increasingly being harnessed to amplify the impact of public policy actions. Two in particular are the ideas of “nudge” and “networks” Behavioural economics is increasingly important in service design. It can help to influence peoples choices ( encourage people towards healthy living) It can help us in marketing services like building control and leisure to increase income It can help us to incentivise people to use less energy and recycle more It is important in influencing the way we communicate with our customers and our citizens The examples in the slide show how different approaches can deliver better results than less targeted and tailored efforts
• #18: The effectiveness of a theory will be contingent on the type of network upon which it is enacted When network effects are important, even small changes brought about by incentives can be magnified greatly Network effects are increasingly important as we seek to Manage demand Encourage people to exercise and try to counteract trends towards obesity Influencing behaviours like eating, smoking and recycling Scale free most people have a small number of connections to others. A small number of people are connected to very many others. These “hubs” may spread a powerful influence over the behaviour of other agents. The probability of a cascade effect is small but possible if enough “hubs” adopt the behaviour. Small world these comprise overlapping groups of “friends of friends” A few members of the group have long ranging and more distant connections, raising the possibility of the spread of ideas, choices and opinions across disparate groups if these are targeted. You don’t necessarily know however if a cascade will spread across the network Random networks eg catching a cold by sitting next to a stranger on a bus. There is still a chance of a cascade – you have to have a blitz and try to persuade enough people to change
• #19: The diagram above ( from the publication “The Toyota Way”)