Austin Macauley 15 October 2014

Report predicts six scenarios for local government in 2020

Councils that fail to innovate and adapt to the tough funding climate will face a ‘slow and painful demise’ over the next five years, a new report has warned.

Research by Grant Thornton UK LLP and the University of Birmingham’s Institute for Local Government Studies (INLOGOV) suggests local authorities will need to make fundamental changes to survive.

Their report predicts six scenarios for councils in 2020 – all shaped by their response to austerity and rising demand.

‘Adaptive innovation’ sees councils redefine their role and exercise influence through partnership with other authorities while the self explanatory ‘running to stand still’ covers those who are led and managed well enough to steady the ship.

Councils that live a hand to mouth existence through a short-term view are defined as ‘nostril above the waterline’ and ‘wither on the vine’ accounts for local authorities that resign themselves to running the bare minimum statutory services as they move from ‘action to reaction’.

Those dubbed ‘just local administration’ have lost the capacity to deliver local services either because they have relinquished control or had them taken away. The final scenario, ‘imposed disruption’, accounts for councils where external intervention is eventually required.

‘The report highlights both the risks to local government of incremental decline and the opportunities which could come at this pivotal moment through active leadership, innovation and above all, collaboration,’ said Catherine Staite, director at INLOGOV.

‘Collaboration requires maturity and a focus on better outcomes rather than on structures and systems. Local government will need to be able to speak to central government coherently and convincingly before there is any hope of them letting go.’

She added: ‘The most forward looking local authorities are demonstrating just how much can be achieved, even in a time of great austerity. It’s important for the future of local government and the interests of the people we all serve that the rest catch up with the best – and quickly.’

Paul Dossett, partner and head of local government at Grant Thornton, said financial and operational challenges will ‘magnify exponentially over next 10 years’ and a ‘radical change’ is necessary if they are to ‘remain relevant’.

‘This can only be achieved through open, honest and collaborative dialogue between policy makers at all levels of government. In our view this must come with significantly greater financial devolution and tax raising powers, in order for the local authority of the 2020s to have any meaningful purpose.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Pensions - Projects

Royal Borough of Greenwich
£63,966 - £67,575 (FTE)
The Royal Borough of Greenwich has an opportunity for a Head of Pensions - Projects, with experience of the Local Government Pension Scheme. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Principal Public Health Manager (Population Health Management)

Royal Borough of Greenwich
PO8 - £63,966 - £67,575
This is an exciting opportunity to make a difference to the health outcomes of the population of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Supervising Associate Lawyer

Essex County Council
£62691.0000 - £73753.0000 per annum
Supervising Associate Lawyer - Dispute Resolution/Civil LitigationPermanent, Full Time£62,691 - £73,753 per annumLocation
Recuriter: Essex County Council

Residential Care Practitioner (Children's)

Kirklees Metropolitan Council
£28,251 - £36,057 (Inclusive of 7% enhancement)
Children’s Support Workers provide in‑person support across a range of Kirklees locations. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

HR Advisor (Policy, Pay and Reward)

Kirklees Metropolitan Council
£17,217-£20,388
Join Our Policy, Pay and Reward Team Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner