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- John Denham: Making every pound work harder
John Denham: Making every pound work harder
| Published | 25 June 2009 |
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Responsive and effective local councils will be key to giving taxpayers real value for money, Communities and Local Government Secretary John Denham will tell local authorities today.
Speaking to the Chartered Institute of Public Finance and Accountancy conference, in Manchester, Mr Denham said:
"Although overall Government current spending will rise in real terms under this Government, the days when councils could claim that every problem could be answered by a cheque from Whitehall are over. Local authorities will need to make each taxpayers' pound work harder than ever. Indeed, councils must be able to promise residents that every taxpayers' pound will work as hard as for them as taxpayers worked to earn it in the first place."
Mr Denham went further reinforcing the need for efficiency savings to ask local authority officers to look at every way each pound could benefit local people. He will highlight the estimated £42 billion spent on the procurement of goods and services each year.
Mr Denham said:
"This money can just buy services - or it can be used to ensure the service providers also provide apprenticeships and other training opportunities.
"This money can just buy a standard service at the lowest possible cost - or it can be used to encourage businesses, including local businesses, to provide innovative solutions which deliver better value for money.
"This is a huge opportunity for local government to show the rest of the public sector the way."
Local Government has already committed to doubling the number of apprentices they employ - from 7,500 to 15,000 - and smarter procurement could see public money unlocking many more opportunities for young people to find a route into employment across a wide range of sectors.
In uncertain economic times, the best guarantee of frontline services is to increase the pace of local public service reform. As many local authorities now accept, this means more than making efficiency savings; it also means a willingness to look fundamentally at how services are provided.
The Communities and Local Government Secretary confirmed his intention to open a debate on the powers and responsibilities of local government, and will say that one of the most exciting possibilities was to enable a more coherent look at every aspect of public spending in each local authority area.
The Government today is also publishing collection rates for 2008/09 for council tax and non-domestic rates. Results show councils collected 97 per cent of expected council tax and nearly 98 per cent of the expected business rates return.
Councils have a legal responsibility to collect council tax and business rates but during the downturn they are rightly, like central Government, helping those families and businesses that are in most need.
Anyone facing difficulty paying their bills should contact their local council for help with payment schedules and council tax benefit for those eligible. The small business rate relief scheme can give a discount of up to 50 per cent and new rules will allow all businesses to spread two thirds of this year's inflation-rate increase in bills over the next two years.
Notes to editors
1. John Denham's full speech to the Chartered Institute of Chartered Institute of Public Finance and Accountancy conference, is available at: www.communities.gov.uk/news/corporate/1264928
2. The statistical release Collection Rates for Council Tax and Non-Domestic Rates in England 2008-09 can be found on the Communities and Local Government website at: www.communities.gov.uk/publications/corporate/statistics/collectionrates200809
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