Thomas Bridge 10 December 2014

Rural councils under 'most pressure' on construction spending

Rural councils are under the greatest pressure to adopt corporate principles as budget cuts hit construction projects, research reveals.

While urban local authorities on average faced a larger fall in their revenue budgets for construction projects last year (a 15% drop), their rural counterparts faced greater pressure to cut costs and prove value for money - analysis by Scape suggests.

Almost four fifths of councils were found to be responding to falling resources by adopting a more commercially focussed approach to public services, with rural areas most affected.

According to Scape, over two thirds of all councils are finding it significantly harder to maintain the quality of public buildings while delivering the quantity required to meet public demand.

Some 73% of town halls analysed have had to cancel or postpone a building project in the past two years, with the most common cause being suppliers' inability to work within the available budget.

Over three quarters of town halls are also unsure that they will meet 2015 savings targets for built environment projects.

Mark Robinson, group chief executive of Scape said: 'It is clear from these findings just how great a challenge is faced by local authorities to balance shrinking budgets with the rising demand that many public services are experiencing.'

'The emphasis on adopting business-like principles and demonstrating value for money is a sure sign that a new approach is needed to deliver more for less. Smarter methods of procurement need to be adopted on a wider basis to achieve this goal, as well as channel spending and job opportunities back to local communities.'

Commenting on the findings, Simon Parker, director at the New Local Government Network, added: 'We need to see a much greater focus on commercial approaches that deliver financial returns for the public sector along with much higher levels of long-term social value for local people. This shift has already begun. The challenge is to continue rapidly raising the level of ambition throughout the sector.'

LocalGov Weekly Round Up image

LocalGov Weekly Round Up

William Eichler, editor of LocalGov.co.uk, reflects on the stories that captured readers’ attention this week.
SIGN UP
For your free daily news bulletin
Highways jobs

Customer Services Assistant

Essex County Council
Up to £25081.00 per annum
Customer Services AssistantPermanent, Part Time - 18.5 hours £25,081 per annum (FTE)Location
Recuriter: Essex County Council

School Crossing Patrol Officer - Bishops' CE & RC School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Bishops' CE and RC Primary SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

School Crossing Patrol Officer - Vacancies across Essex

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Vacancies across EssexPermanent, Term Time£13.00 per hour Location
Recuriter: Essex County Council

Health & Safety Consultant

Essex County Council
£35525.0000 - £41794.0000 per annum
Health & Safety ConsultantPermanent, Full Time£35,525 to £41,794 per annum Location
Recuriter: Essex County Council

School Crossing Patrol Officer - Elsenham School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Elsenham SchoolPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council
Linkedin Banner