The Gershon Review

In July 2004 the Government published the Gershon Report ‘Releasing Resources for the Frontline: Independent Review of Public Sector Efficiency’, which reviewed public sector efficiency. The report focused on the Government’s key objective to release resources to fund front line services, by improving the efficiency of service delivery. The Gershon review is set to change the face of t-government policy dramatically within local government, requiring local authorities to adopt a more rigorous approach to implementing organizational change and measuring benefits in order to realise business efficiencies.

What does this all mean for Local Government?

Local Authorities across the country, have been tasked with making efficiency savings of 2.5% per annum, commencing in 2005/06, and the responsibility of delivering collectively £6.45 billion of total savings by 2007/08. Releasing resources to the frontline means that local authorities will have to scrutinize more thoroughly the way in which they do business.

Investment in technology systems is needed for savings to be realized. There will be an increased reliance on identifying the right ICT solutions that offer Councils the ability to improve services, provide e-enabled transactions, whilst at the same time contributing to delivering efficiency savings.

As part of the local government efficiency agenda, all local authorities in England are required to submit Annual Efficiency Statements to the ODPM, which are formed of two parts; the Forward and Backward look statements.

Supporting Local Government

The Office of the Deputy Prime Minister (ODPM) will be putting in a total of £45 million over the period 2005-2008 through the Capacity Building Fund. This will fund Regional Centres of Excellence that are led and managed by local authorities to drive forward efficiency and promote best practice in procurement, back office and transactional services in the regions. It will also support innovative programmes for authorities to share back office functions with other authorities and the wider public sector. The Deputy Prime Minister has also appointed Barry Quirk, Chief Executive of Lewisham, as the National Efficiency Champion to work with local authorities, government departments and other partners, to share and promote best practice on the ground.

As far as Local Government funding is concerned, Government has also made a commitment to explore opportunities for increased freedoms and flexibilities, through strengthening the relationship between central and local government, further deregulation, and devolving decision making to authorities, for example through implementation of Local Area Agreements.

Caps Solutions understands the challenges local government is facing and is ideally placed to provide effective solutions which are proven to deliver significant business benefits, cost reductions and tangible efficiency savings.