WIREDGOV

New figures released by the Local Government Association (LGA) show that at least 337 local authorities in England are engaged in sharing at least one service, resulting in savings of £249 million so far. A further £169 million in savings from these agreements is projected in coming years.

The new figures are evidence of an ambitious approach to service sharing, with the number of agreements climbing by 61 per cent since December last year. In total, across the country, there are at least 230 shared service arrangements in place.

The savings are, however, being dwarfed by cuts to local government funding. At the start of the spending review, councils faced a 28 per cent cut in funding from Government. With additional cuts signalled by the Chancellor and new pressures emerging as a result of Government policies, the LGA is now predicting that the total cut by 2015 will be at least 33 per cent and perhaps even more. In cash terms, councils have already seen funding cut by £5 billion since 2010, a real terms reduction of 16.3 per cent.

Councillor Peter Fleming, Chairman of the LGA's Improvement and Innovation Board, said:

"The quarter of a billion pounds which has been saved is helping local authorities reduce the impact on frontline services of large cuts to council funding. Local government was already the most efficient part of the public sector before the spending review and collectively councils are pushing extremely hard to find new savings.

"Sharing services will not offset the cuts councils are facing but they are being used to soften the blow. Finding additional savings through efficiency becomes harder, not easier with time. With cuts to public spending now signalled until at least 2019, we need the Government to recognise local government's superior efficiency and direct the Chancellor's attention toward those parts of the public sector which have not yet trimmed the fat.

"The 28 per cent cut goes well beyond the scope of efficiency savings. The reality is that cuts of that size will have an impact on the services councils are able to provide, particularly when set against the rapidly rising cost of delivering services like adult social care."

Author: LGA Media Office
Contact: LGA Media Office, Telephone: 020 7664 3333

Notes to editors

The latest research from the LGA shows that 337 councils are engaged in 230 shared service arrangements, resulting in £249 million efficiency savings.

• Updated number of shared service examples: 230 (165 in 2011)
• Updated number of councils involved: 337 (up from 220 in 2011)
• Updated total efficiency figure: 249 million (£248,938,550 total).
• Estimated future efficiency figure: further £169 million (169,330,000) projected savings (based on templates received).

Most councils have more than one entry on the map as they have multiple shared service arrangements. For example, North Somerset is in both the West of England Waste Partnership and the West of England Transport and Strategic Planning Partnership.

Although shared service arrangements are predominantly between councils, there are a number of partnerships across a range of organisations, including fire and rescue, libraries, schools, universities and healthcare/NHS bodies.

There have been more examples of authorities sharing frontline services. In particular, collaborations on adult social care and children and young peoples' services.

See related story on the 'Financial Times' website:

Big rise in councils sharing to save cash