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Collaboration between Local Authorities

Collaboration between Local Authorities. Context - the efficiency programmeCollaboration and shared servicesBenefitsOvercoming the barriersRecognising limitationsThe future. The Efficiency Programme. 2.5% p.a until 07/08 at least half cashableAESs show LAs set to make

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Collaboration between Local Authorities

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    1. Collaboration between Local Authorities 18 November 2005 Sarah Wood, Director of Policy, Local Government Association

    2. Collaboration between Local Authorities Context - the efficiency programme Collaboration and shared services Benefits Overcoming the barriers Recognising limitations The future

    3. The Efficiency Programme 2.5% p.a until 07/08 at least half cashable AESs show LAs set to make £1.9b in 05/06 Exceeding government targets Recognised by central government as “good” at efficiency

    4. Collaborative working Authorities identify options for joint working Not necessarily shared services Important for achieving efficiency targets and improving services Especially for smaller authorities

    5. Shared Services Collaborative approach to service delivery with functions concentrated into discrete semi autonomous business, involving co-location Economies of scale 17% of LAs involved in shared ‘back office’ arrangements with other LAs - 48% ‘considering’ arrangements

    6. Benefits Potential for cost reduction & efficiency gains Service improvement Customer focused - user-centric services Pooled capacity and skills Standardisation Improved market intelligence

    7. Barriers Political Cultural and organisational Historical Lack of incentives Perceived loss of local flexibility and identity

    8. Barriers continued... Technical capability Capacity and skills Poor quality market intelligence Risks to reputation Initial costs EU Procurement Rules

    9. The Worcestershire Hub One Stop Service Partners - Worcestershire CC, 6 districts & Hewlett-Packard Joint governance arrangements 80% of enquiries resolved at first point of contact £1.4m p.a. savings

    10. Other collaborative projects Liverpool Direct and BT Lancashire Waste Partnership Somerset Waste Partnership Cumbria County Council and Agilisys East of England Revenues and Benefits study

    11. Failed collaborative projects Bedfordshire County Council and Hyder Business Services Financial services, HR, IT, education etc Signed 2001 - terminated 8 years early “Performance concerns” Managing expectations

    12. What makes collaboration work? Contract expectations need to be aligned Supplier awareness of political and cultural context of local government Suitable contract termination procedure Accountability Private sector experience in field

    13. Future of efficiency programme Collaborative working as part of VfM in CPA? Increase in 2.5% target? Extending efficiency targets beyond 07/08? Greater incentives for LAs? Removal of local retention of savings? Across Public Sector/ SR07 expectations

    14. Issues to consider Which services? Who decides? Incentives? Carrots and sticks How to recognise the benefits and overcome the barriers How to accept the limitations How to learn lessons from success and failure Could we use the Wellbeing power more? How to push the boundaries?

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