Councils considering private sector venture, says survey
Nine out of ten local authorities in England are looking to share front line and back office functions within the next two years. That’s according to research by Midlands law firm Browne Jacobson, which suggested that 78 per cent of local authorities would consider setting up a joint venture with the private sector.
Browne Jacobson, which has offices in Birmingham and Nottingham, conducted the research following the government’s decision to reduce local government spending.
According to the research, almost two-thirds (65 per cent) will target back office functions and 68 per cent front line services in the next year.
Eighty five per cent of respondents said that they might consider outsourcing on a service by service basis, whilst 78 per cent would also think about setting up a joint venture with the private sector.
Environmental and social care services are the two most popular areas where senior managers would consider sharing.
Cost saving was the key driver for those considering a move to more shared services, with 63 per cent expecting to save up to 10 per cent of their total budget savings by sharing services in the financial year ending April 2012.
Browne Jacobson’s head of shared services, Dominic Swift, said: “The government’s austerity bombshell is clearly forcing authorities to look at innovative and radical ways in which to deliver their services.
“We can also see a noticeable sea change in attitudes towards merging front line services.
“Councils are starting to think outside the box and previous no-go areas such as the private sector and large scale outsourcing are also back on the agenda.”
The Ipsos MORI survey for Browne Jacobson interviewed 150 senior local authority managers in England.
