Councillor Martin Hill, OBE

1. Councillor Martin Hill, OBE Welcome Chair of the EM IEP Board, and Leader of Lincolnshire County Council

2. The Next Five Years for Public Services Stephen Hillier Regional Director, GOEM

3. The Next 5 years for Public Services Stephen Hillier, Director Government Office East Midlands

4. A tough financial outlook … • The longest and deepest recession since WW2 • Largest budget deficit in Europe – except Ireland • State spending – a quarter funded by borrowing … • … Increasing our national debt by £3bn per week • Need debt to fall as proportion of national income • And structural deficit to be in balance by 2015-16

5. … required an Emergency Budget We need to ‘eliminate the bulk of the structural deficit over the course of the parliament…’ = £32,622

6. To be followed by a Spending Review Where these tests will apply • Is the activity essential to meet Government priorities? • Does the Government need to fund this activity? • Does the activity provide substantial economic value? • Can the activity be targeted to those most in need? • How can the activity be provided at lower cost? • How can the activity be provided more effectively? • Can it be provided by a non-state provider or by citizens? • Can non-state providers be paid on the results they achieve? • Can local bodies, not central Government, provide the activity?

7. A Spending Review with these caveats • The Government will • Guarantee that health spending increases in real terms • Ensure that 0.7 per cent of GNI goes on overseas aid by 2013 • Limit, as far as possible, the impact of reductions in spending on the poorest and most vulnerable in society • Limit as above the impact on those regions heavily dependent on the public sector • Protect, as far as possible, the spending that generates high economic returns and take measures to support competitiveness • Ensure a tax and benefit framework that is fair for all

8. What is the Coalition’s vision? Values Means A Big Society matched by Big Citizens Freedom Frameworks that support social responsibility and civil liberties Fairness Those who cannot, we always help Responsibility Those who can, do Decentralisation and Localism Public Service Reform Political Reform A Smaller State Deficit Reduction and Economic Recovery A successful Big Society will deliver economic prosperity and opportunity for all, strong families and communities, and a thriving democracy characterised by real power in the hands of every citizen.

9. A completely integrated approach localism localism localism localism localism localism localism localism localism localism localism localism localism localism localism localism localism

10. Steps towards decentralisation • Directly elected mayors with additional powers • Directly elected police ‘commissioners’ • Directly elected individuals on PCT boards • Free schools • State schools may become academies • Give councils a general power of competence • Phase out the ring-fencing of grants • Return decision-making powers to local councils

11. Where the basis of fundamental reform is A naked transfer of power

12. There is a mountain to climb • 1.4m on out of work benefits for 9 of last 10 years • Income inequality at its highest since stats began • Social mobility worse than in USA, France, Spain, Germany, Sweden, Canada, Finland, Denmark • A higher proportion of children grow up in UK in workless households than in any other EU country

13. So we need new forms of collaboration • between public authorities Effective collaboration this will act as a gateway to wider progress

14. With neighbourhoods as our building blocks Local Government Finance Planning Service Delivery Service Empowerment

15. Some conclusions • What does the next 5 years hold for you as:- • Elected members? • Officials? • Public Sector partners? • Citizens?

16. The Local Government Association & Sector Led Improvement Councillor David Parsons, CBE Chair, LGA Improvement Board

17. Councillor David Parsons, CBE Chair of the LGA Improvement Board, Leader of Leicestershire County Council 29 June 2010

18. Challenges and Opportunities • Challenges – • Emergency budget • Protect front line services

19. Challenges and Opportunities • Challenges – • Deliver efficiencies • Work differently

20. Challenges and Opportunities • Opportunities – • New ways of working • Cut central bureaucracy and quangos • Cut unnecessary inspection and regulation • Local accountability

21. Responsibilities • Self regulation – • Our own performance and improvement • Underperforming authorities

22. Total Place • Key messages – • Inefficiency and duplication • Quangos • Cross-sector solutions required • Shared services

23. Leicestershire Examples • The costs of too many organisations - • The cost of being in business • c £200m • Delivery and funding chains • 20% funding loss at each layer

24. Place Based Budgeting • Agree local priorities • Area-based pooled budgets • Joint working

25. Productivity Programme • National programme • New ambitious areas of work • Sharing services • Data and transparency

26. Productivity Programme • Local government expertise • Sector support from RIEPs

27. EM IEP • Member-led partnership • Meets collective needs • Working together

28. EM IEP £26.9m of savings achieved through partnership working

29. Refreshments & Networking

30. EM IEP … The Story So Far Nick Hodgson Chair, EM IEP Strategy Group

31. Annual Conference 2010 The First Two Years Delivery of Change is Difficult but Rewarding

32. How it started • Established in 2008 • From the start the aim was to develop a Member led RIEP • Strategy developed through consultation with members which sets out the vision for EM IEP Achieving our vision of public services consistently amongst the best in the Country will ensure we achieve better outcomes for people and places. • Some early difficulties leading to the CLG withholding grant funding • New Board quickly established, chaired by Cllr Martin Hill, OBE • 5 Sub-Regional partnerships established / recognised

33. How it started • 26 Stretch Targets agreed to reflect the aspirations in the strategy across 5 themes: • Better outcomes for people and places • Capacity Building • Efficiency • Driving Self Improvement of Authorities and Partnership • Innovation and Transformation • By the end of 2008 assessed by LGA as making good improvement and grant funding released by CLG

34. Progress over last two years • EM IEP awarded £35m over the last 2 years • Agreed that around 70% of funding would be devolved to sub regional partnerships and 30% for regional projects • Investment concentrated in following 3 areas: • Capacity Building • Improving services and in particular LAA outcomes • Driving out Efficiency savings • Established Regional and Sub-Regional Programmes • Engagement across the region

35. Progress over last two years • Targets revised to reflect changes in priorities Sector led improvement • No poor rated councils arising from the CAA by 31st March 2011 • The average scores for each of the Managing Performance and Use of Resources judgements should demonstrate an upward trajectory across the region • Reduce the number of Red Flags from 2009 level of 5, by 31 March 2011 Return on Investment (ROI) • The average ROI for EM IEP investment should be at least 4:1 Efficiency Savings the minimum requirements are: • NI 179 Efficiency Savings target is achieved Delivering excellent Local Area Agreement outcomes • Each LAA to achieve a minimum score of at least 60% across the LAA by April 2011

36. Regional Programmes • A range of regional projects have been developed which benefit all local authorities in the region across the following service areas: • Procurement of commodities, goods and services • Construction of Highways and Property • Environmental Services, including climate change • Economic Growth • Elected Member and community/neighbourhood development • Adult Social Care in partnership with Health • Children’s Services in partnership with Health • Shared services, business transformation and general efficiency • saving ideas via the EM Efficiency Challenge

37. Regional Programmes • Regional projects have already delivered £35m of cashable savings from an investment of £12m. Some examples: • East Midlands Property Alliance: £6m • Care Funding Calculator: £4.5m • Regional procurement: £10m • East Midlands Highways Alliance: £3m • EM Lawshare: £4m • Predicted efficiencies have been calculated at £159m over 5 years.

38. Sub Regional Programmes • Sub regions have developed local work programmes containing over 200 separate projects • Standardised programme and project management principles that allow transparency across the sub regions have been developed • Each sub-region has undergone a peer challenge review which has delivered positive outcomes • Learning shared across each sub-region and successes copied were appropriate • Sub regions have delivered cashable savings to date of £3m • Anticipated cashable savings over 5 years of over £50m

39. Sub Regional Programmes • The following video celebrates the changes and benefits that have flowed for local authorities and citizens from some of the EM IEP investment to date:

40. In Summary • It’s only been two years since we embarked on what is a unique approach amongst RIEPs • The journey has not been easy • We’ve has some successes and there will be with more to come • The next 9 months however will be tough and everyone is focused on ensuring we deliver by the 31st March 2011 • But for today, we should acknowledge the good work, new ideas and innovation that has taken place

41. EM IEP Showcase Sessions 12.10 – 12.40: Sub Regional Partnership Showcase 12.45 – 1.15: Regional Projects Showcase

42. Round up & Conference Close Councillor Martin Hill, OBE Chair of the EM IEP Board, and Leader of Lincolnshire County Council