WIREDGOV

A truly transformational approach is needed to deliver financially sustainable and high quality public services in this Parliament and beyond, according to the CBI.

CBI Director-General, John Cridland, yesterday followed up the Prime Minister’s recent speech on reform by advising against ‘shrinking the state without making it smarter’.

Although the boss of Britain’s biggest business group will praise the Government for progress made in the previous Parliament, he will warn ‘while efficiency is necessary, it’s no longer sufficient.’

In a speech at the Leadenhall Building, John Cridland will address what’s happened to public services since 2010, what should happen next and how business can play its part. He will encourage:

• Tackling silo working within departments
• Local authorities to seize opportunities in devolution and improve digital access
• The NHS to seek productivity savings and implement the Carter Review recommendations.

Speaking alongside a high profile panel (including NHS England Chief Executive Simon Stevens; Serco CEO, Rupert Soames; and Troubled Families Director-General, Louise Casey) John Cridland, CBI Director-General, will say: “I’m calling on the Government to move onto the next step of its plan – transformation. 

“This means acting early - focusing on prevention rather than cure – and looking at savings in the long-term. And it means putting people above processes, working across departmental fault-lines to create joined-up services which deliver for citizens.

“In the future – demographic pressures will make this need for change even more important.”

On the need for Whitehall departments to work better together, Mr Cridland will say:

“Whitehall can be proud of its progress on efficiency over the last five years. But we need to see more departments working together on solutions.

“We estimate that if all departments signed up to the Government’s shared service centres to pool ‘back-office’ functions, they’d make £640m of savings every year.  

“The Troubled Families programme is a great example of what happens when different bodies start with the outcome they want and build everything around that outcome.

“Through tackling multiple problems such as addiction, truancy, anti-social behaviour and long-term unemployment, the programme has already saved an estimated £1.2bn.”

On local government playing its part, Mr Cridland will say:

“According to the Local Government Association, grant funding to local government will have fallen 40% in real terms by April 2016. With the ring-fencing of other budgets, local services have been under real pressure.

“Whilst some local authorities have dealt well with these pressures, many still aren’t making the most of market solutions. For me what matters isn’t whether services are ‘private sector’ or ‘public sector’ but whether they’re ‘good’ or ‘bad’. If some councils continue to put ‘who’ provides a service above ‘what’ service is delivered, it will ultimately mean less choice and less value for money.”

He will add that devolution presents more opportunities for tackling tough issues such as reoffending through better coordination of services, and that ‘digital could be a ‘win-win’ for local people, local businesses and local councils’.

On the need to achieve productivity savings in the NHS, Mr Cridland will advocate implementing recommendations from the Carter Review, which include introducing standardised efficiency metrics in all NHS hospitals. 

Mr Cridland will say: “And with more people suffering from long-term conditions, more ‘self-care’ would mean fewer hospital stays, whilst giving patients the comfort of staying in their own homes. This could mean sufferers of diabetes – for example – taking their blood pressure at home and logging the results on an online portal.”

On how business can play its role, Mr Cridland will say:

“Business has a critical role to play as an enabler of the transformation that needs to take place.

“Companies can provide the large-scale investment in the new technologies and systems which will drive transformation.

“But business has a lot more to bring to the table than just cold-hard cash.

“Private sector firms have the know-how, innovation and entrepreneurial spirit to future-proof public services.

“Yet transforming public services also means transforming how the Government – as a customer – interacts with business.

“The relationship between Government and business shouldn’t be just two signatures on a contract. Partnership will be crucial for providing services which combine both efficiency and quality.   

“Firms want to see ‘dialogue by default’.

“But to do that Government will have to do its bit. Engaging with firms before procurement and keeping the conversation going after contracts have been awarded.”