One in four council chief executives and directors of finance
say number of councils should be halved, says Grant Thornton
survey
Almost 40 per cent of local authority chief executives and
directors of finance think the number of councils in Scotland
should be reduced from the current 32, with 25 per cent believing
that the number should be halved. Yet despite the clear appetite
for structural reform, many admitted that their authority was not
presently collaborating or outsourcing to make any significant
change.
The poll of 36 council chiefs, conducted by Ipsos MORI for
business and financial advisers Grant Thornton, asked, in light of
the Christie Commission, how many local authorities should there be
in Scotland. 25 per cent thought 15 or less; 14 per cent over 15
but less than 32; 31 per cent thought there should be no change
while a further 30 per cent didn’t know or failed to answer the
question.
The survey also revealed little evidence of joint working across
a range of front line and back offices services, although plans are
being considered by some for the future. For example, no council
interviewed has shared service or outsourcing arrangements for
providing street cleaning services yet just over a third of
respondents would consider doing so.
In payroll administration, a more easily outsourced ‘back
office’ function, 83 per cent of respondents do not currently
collaborate, yet 63 per cent of these respondents would do so in
the future, while 17 per cent would consider outsourcing.
Interestingly, another 30 per cent would consider neither.
As the government unveils its new legislative programme this
week, the findings are particularly pertinent in view of slow
progress on the Clyde Valley Partnership plan and other shared
services proposals across the public sector.
According to Gary Devlin, director at Grant Thornton Scotland,
the support for shared services demonstrated through the poll
raises specific questions over who or what is blocking progress. He
says, “The survey shows that there is a clear appetite for
structural reform in the local government sector. Yet, where there
are plans to collaborate, for example in the Clyde Valley Shared
Services Project, these are beset by difficulties and rarely
deliver the benefits expected at the outset. If senior staff in
local authorities believe there is a need for reform, who or what
is the barrier to doing this? ”
Funding is an issue as highlighted in the survey, with 50 per
cent of the CEOs and CFOs questioned expecting capital budgets to
be reduced next year. (31 per cent thought their capital budget
would remain unchanged with 17 per cent expecting an increase).
However, the perceived risk may also be too great for the elected
officials.
He adds, “With local authority elections taking place next May,
politicians may understandably be reluctant to engage in
potentially risky change management programmes. Equally, shared
service arrangements often require ‘giving up’ control or jobs in
some areas in exchange for efficiency savings, which is unlikely to
appeal to local councillors even where large savings are
possible.
“In the absence of any political momentum behind serious reform
in our public services, it is currently unclear how local
authorities will be able to maintain public service provision with
fewer resources. It is not a great leap to suggest that the lack of
reform will almost certainly result in poorer or fewer public
services and we will all be worse off as a result.”
Find out more about the
2011 Ipsos MORI Survey of Scottish local authority Chief Executives
and Finance Directors.
ENDS
For further information, please contact:
Emma Ap-Thomas, PR Manager on +44 (0)20 7728 2348 or +44 (0)7917
072597 or
Emma.Ap-thomas@uk.gt.com
Notes to editors:
- The local authority chief executive and finance director survey
2011, was conducted by Ipsos MORI 36 interviews were conducted
between 14 July and 26 August 2011.
- Survey questions on shared services were co-sponsored by
Shepherd and Wedderburn LLP.
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