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Councils 'considering shared services and outsourcing'

14 December 2010

Three-quarters of local authorities are weighing up their options for shared services and outsourcing, according to new research.

A survey of council finance directors carried out by the Localis thinktank revealed 75 per cent have considered merging functions with other authorities and outsourcing services to external contractors.

The report indicated that many councils are pursuing "innovative solutions" to meet the challenge of large-scale budget cuts and the increased pressure on public services.

Of the finance directors who have explored the prospect of outsourcing, 71 per cent said they would opt to involve a private sector organisation and 69 per cent would look to the voluntary sector.

"Councils must think radically about how they support and empower their residents and introduce new service delivery models," said Alex Thomson, chief executive of Localis.

The funding allocation for local government was announced by the government yesterday (December 13th), with communities secretary Eric Pickles revealing that councils will see their spending power reduced by an average of 4.4 per cent for 2011/12.

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Categories: Public Sector

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