WIREDGOV

'Each council must find its own way of cutting costs tailored to local needs, local circumstances and its own workforce. Councils are often the largest employer in their area, so downsizing can affect the local economy. Local government is a people business, with staff costs accounting for almost half the money spent by councils, so they need to be aware of all their options and the tools at their disposal. This report gives case studies and comparisons, while remaining focused on service quality. That is why it is so valuable.'

'Local government is the most efficient and trusted part of the public sector. Every day, local authorities deliver vital services that people rely on and they do the best job they can within their means. Unfortunately, in the current climate, councils have had to take some tough decisions in order to bring their workforce costs down, continue to provide essential services and minimise job losses. This is part and parcel of sound and responsible financial management.

'Funding cuts have meant workforce costs must come down. Councils have been ahead of the game in making savings and have already started to reduce workforce costs. Unfortunately, job losses are inevitable given the scale of cuts. Where these are necessary, councils are working hard to minimise disruption to staff and services through restructuring, shared services and outsourcing. They are also looking at how they invest in and reward people to ensure they continue to deliver the most efficient public services possible.'

• freezing recruitment to unfilled posts;
• cutting overtime, bonuses and out-of-hours payments;
• reducing their spend on agency workers and consultants; and
• extending part-time hours.

1. The report can be downloaded here: Work in progress: meeting local needs with lower workforce costs
2. Other services included in the report are libraries, culture, recreation and sport, housing, roads and transport, environmental services, planning and development, and the administration that supports them.
3. The report comes with guides to pay benchmarking and comparing labour markets. There are also free online tools to assess the spend on agency staff and on each service area. A separate publication gives more detail on five case studies.
4. Earlier Audit Commission reports Tomorrow's People, Back to Front and Surviving the Crunch are also relevant
5. The Audit Commission is a public corporation set up in 1983 to protect the public purse. The Commission appoints auditors to councils, NHS bodies (excluding NHS Foundation trusts), police authorities and other local public services in England, and oversees their work. We also help public bodies manage the financial challenges they face by providing authoritative, unbiased, evidence-based analysis and advice. In August 2010, the government announced plans to disband the Audit Commission and put in place new arrangements for auditing England's local public bodies. The Commission is undertaking a procurement exercise to outsource the work of its in-house Audit Practice. Beginning in 2012/13, the Commission will award contracts of three to five years to private audit firms. The government is currently considering responses to its consultation on the 'future arrangements for local public audit' that are intended to replace the Audit Commission.
6. The Local Government Association is here to support, promote and improve local government.Local government is facing the most radical changes, as well as the most significant opportunities, in a decade. We will support councils through challenging times by focusing on our top two priorities: representing and advocating for local government and making the case for greater devolution; and helping councils tackle their challenges and take advantage of new opportunities to deliver better value for money services. We aim to set the political agenda and speak in the national media on the issues that matter to council members. The LGA covers every part of England and Wales, and works with the individual political parties through the political group offices.