Healey unveils overhaul of efficiency and improvement support for councils

Published	18 March 2008

Local Government Minister John Healey has today confirmed the first step in an overhaul of improvement support for councils, as they work to increase efficiency and improve services to release £5 billion, which can be used to reduce pressure on council tax bills or invest in local services.

He praised councils for being on track to make £4.2bn annual efficiency gains this year - well ahead of the £3bn target.

Mr Healey announced the allocation of £185m through council-led Regional Improvement and Efficiency Partnerships, to pioneer innovative ways to transform and improve services, and cut waste.

He also published a new prospectus, outlining the new approach for supporting councils to make efficiency gains. The document:

For the first time draws together the improvement support that is available from central and local Government to make it easier for chief executives, chairs and others to find the support they need, when they need it
Commits central and local Government to simplifying the improvement support for local government by making changes to the way that they deploy their improvement resources.

Communities and Local Government and the Department for Health are also announcing joint funding totalling £4m today for RIEPS to spread best practice in local health services in every region, and to promote the personalisation of health, wellbeing and social care.

Local Government Minister John Healey said:

"I congratulate councils for achieving such significant efficiencies in such a short space of time. It shows what can be achieved when authorities rethink how they work and pursue innovative ideas.

"Because gains have been made in the past, doesn't mean more can't be done. The drive for high quality local services and good value for money is rightly coming less from central Government and more from local communities. The public expects councils to explore all avenues available to achieve this.

"For our part, I am streamlining the support on offer and giving money to the regions to support the delivery of new LAAs and make it easier for councils to release another £5bn of efficiencies, by working together and changing local services for the better.

"It is now for councils to take up these opportunities, go further in cutting waste, and deliver the world-class services that local people rightly expect them to do."

Cllr David Shakespeare, Chair of the LGA's Improvement Board, says:

"The prospectus is an important step in simplifying the support available to councils to help them deliver excellent and efficient public services. Local authorities need to access the right support at the right time by working together on improvement and efficiency, although local solutions are needed for local problems.

"By developing regional improvement and efficiency plans, councils will be able to make wide reaching efficiency savings and the new regional partnerships will be key to developing, identifying and rolling out good practice across and within regions and supporting work between councils."

The new prospectus is published as figures from a local government procurement survey show that the range of support available is increasingly being taken up by councils but there is still more to do to ensure all make best use of this valuable resource.

The announcement comes as the whole of the public sector is being asked to deliver greater value for money. In this year's Budget, the Chancellor confirmed that local authorities will be expected to contribute to the efficiency target for the whole public sector of £30bn by 2011.

Notes to editors

1. A new efficiency prospectus also published today shows all the ways in which councils can work together to achieve significant efficiency savings. These include:

The 'Road Safety Time Bank', a new website giving councils the opportunity to trade knowledge and expertise on road safety, and order free education and publicity materials for road safety officers.
The National Empowerment Partnership and Regional Empowerment Consortia, bringing together councils and experienced community empowerment organisations to agree how to improve the involvement of residents in local decision-making.
Regional local authority champions in tackling homelessness and help vulnerable people in the local community to live independently. There are currently 18 homelessness regional champions.
The £30m Community Assets Programme, which provides capital grants to refurbish public assets being transferred to voluntary and community groups.
Teenage Pregnancy Regional Coordinators, which help councils, schools and health authorities meet targets to reduce rates of teenage pregnancy. Their work is supplemented by the Teenage Pregnancy National Support Team.

2. Prospectus 2008: the guide to improvement and efficiency support is published today and can be found at: www.communities.gov.uk/publications/localgovernment/efficiencysupport.

3. Funding allocations to the Regional Improvement and Efficiency Partnerships during the 2007 Comprehensive Spending Review (CSR07) period will be:

Region	2008-09	2009-10	2010-11	Total
North East	£4,202,778	£5,673,750	£5,673,750	£15,550,278
North West	£5,952,778	£8,036,250	£8,036,250	£22,025,278
Yorkshire and Humber	£4,752,778	£6,416,250	£6,416,250	£17,585,278
West Midlands	£5,327,777	£7,192,500	£7,192,500	£19,712,778
East Midlands	£5,302,778	£7,158,750	£7,158,750	£19,620,278
East of England	£5,890,278	£7,951,875	£7,951,875	£21,794,028
London	£5,702,778	£7,698,750	£7,698,750	£21,100,278
South East	£7,190,278	£9,706,875	£9,706,875	£26,604,028
South West	£5,677,778	£7,665,000	£7,665,000	£21,007,778

4. The Regional Improvement and Efficiency Partnerships will be promoting ways to achieve greater value for money and their strategies will set out how they plan to achieve at least 3 per cent per annum gains in their region. Based on the targets in the 2004 Spending Review period, 3 per cent per annum gains during CSR07 for each region would amount to:

Region	Potential Annual Efficiencies (By end of 2010-11)
North East	£277m
North West	£753m
Yorkshire and Humber	£491m
West Midlands	£514m
East Midlands	£384m
East of England	£469m
London	£866m
South East	£691m
South West	£455m