chief executive, apse o'brien(8).pdf · 85% comes from scottish government 24% real term...

State of the market 2016

Chief Executive, APSE

UK local government spending as a share

of GDP: current spending, already below

the 1979-2014 minimum, is projected to go

on falling to 2020

Balance of core spending power 15/16

and 19/20: as RSG shrivels beyond

London and the Mets, most LA funding will

come from council tax

85% comes from Scottish Government

24% real term decrease 2010/11 to 2014/15

3.5% decrease 2016/17

£500m - £350m + £150m

9th year of council tax freeze

Localisation of business rates

£2B further cuts to public services by 2020?

GRANT SETTLEMENT IN

SCOTLAND

www.apse.org.uk

STATE OF THE MARKET 2016

Transport, Refuse, Street Cleansing and Parks

www.apse.org.uk

What is the evidence saying?

Parks

£73.24

£75.66£74.17

£64.37

£64.57

£60

£64

£68

£72

£76

£80

10/11 11/12 12/13 13/14 14/15

PI 01a - Cost of refuse collection service per household (including CEC)

Average

Refuse collection

£35.44

£37.04

£31.33

£32.98

£31.55

£30

£31

£32

£33

£34

£35

£36

£37

£38

Yr 13 Yr 14 Yr 15 Yr 16 Yr 17

PI 03 Cost of cleansing service per household(including CEC)

Street cleansing

Transport

10.2%

1.7%

16.9%13.6%

10.2%

28.8%

18.6%

0%

5%

10%

15%

20%

25%

30%

35%

Increaseby up to

5%

Increaseby up to

10%

Decreaseby up to

5%

Decreaseby up to

10%

Decreaseby up to

15%

Decreaseby up to

20%

Decreaseby more

than 20%

What can we expect over the next 5 years?

Parks

0.0%

2.6%

26.3%

26.3%

10.5%

23.7%

10.5%

Increase by up to 10%

Increase by up to 5%

Decrease by up to 5%

Decrease by up to 10%

Decrease by up to 15%

Decrease by up to 20%

Decrease by more than 20%

0% 5% 10% 15% 20% 25% 30%

Street cleansing

10.4%

11.9%

20.9%

17.9%

13.4%

19.4%

6.0%

Increase by up to 10%

Increase by up to 5%

Decrease by up to 5%

Decrease by up to 10%

Decrease by up to 15%

Decrease by up to 20%

Decrease by more than 20%

0% 5% 10% 15% 20% 25%

Refuse collection

Transport

0% 10% 20% 30% 40% 50% 60% 70%

Decrease

Stay the Same

Increase

www.apse.org.uk

What is the response?

Parks

Staffing levels

Operational changes:

•Less maintenance

•Wild flower meadows

Increased commercialism e.g. Sponsorship

Decreasing subsidised activity

Service reductions e.g. Play

Increase of fees and charges

Selling services outside LA

Transport

Work for external bodies

Pool Car services

Shared Services

MOT services and repair

Driver Training

Taxi and Private Hire test work

ATF/Tacho Testing

Using vehicles for advertising

Fuel management

Apprenticeship scheme

Refuse collection

Route optimisation

Double-shifting

Reductions in management structures

Increasing income from chargeable services

Closing or reducing hours of HWRC’s

Renegotiation of contracts

Fuel saving technologies

Shared services

Street cleansing

New scheduling

Route optimisation

Area based working

Amalgamation of services

Changing from output specification to

input specification

Reductions in agency staff

Demand management

Double shifting

Generating income

What will local government look like in 2020?

Self Confident

Self Reliant

Self Sufficient

AN ENSURING COUNCIL

www.apse.org.uk

The pillars of excellence

www.apse.org.uk

Efficiency Innovation

Income Generation

Demand Management

Public policy challenges

www.apse.org.uk

Income generation

www.apse.org.uk

Income generation

www.apse.org.uk80

% int

end t

o in

crea

se f

ees

& c

har

ges

over

nex

t 2

-3 y

ears

•Sports pitch lettings (91%)

•Allotments (70%)

•Festivals/concerts/events (68%)

•Cafes in parks (66%)

•Bowling greens (64%)

•Ice cream vans/mobile caterers (60%)

•Fairgrounds (58%)

•Renting buildings and land (49%)

•Sponsorship (43%)

•Tennis courts (42%)

•Boot camps (32%)

•Mini golf (28%)

•Golf course green fees (26%)

•Sale of land (26%)

56

% ind

icat

ed t

hat

they

hav

e in

com

e ge

nera

tion

sch

emes

• Selling recycling materials (97%)

• Renewable energy (9%)

• Anaerobic digester (6%)

• Solid fuel recovery (3%)

43

% a

nsw

ered

that

they

hav

e in

com

e ge

nera

tion

sch

emes • Property clearance

• Private sector cleansing

• Cleansing for developers

• Sponsorship & advertising

• Events e.g. sporting events

• Care of garden charging

• Other in-house sections e.g. parks

• Services to parish councils

• Other public services e.g. NHS 5

0%

cur

rent

ly s

ell

thei

r se

rvic

es o

utsi

de o

f th

e lo

cal

auth

orit

y an

d o

ver

20

% c

onsi

der

ing

it a

s an

opt

ion

•Taxi testing (53%)

•MOT services (60%)

•Commercial body shop facility (11%)

•Authorised testing facility for VOSA testing (19%)

•Driver training (72%)

•CPC approved training provider (26%)

www.apse.org.uk

Who are the public entrepreneurs

and innovators?

Catalysts Stewards

Mediators Deliverers

www.apse.org.uk

Innovation

www.apse.org.uk

Commercialisation

Strategy

Income Generation

Growing Council

Tax Base

Asset Investment

Trading and

Charging

Growing Business

Rates Base

Commercial & Neighbourhood Services –

Management Manifesto

Commercial & Neighbourhood Services –

Management Manifesto

Conclusions

• Budgets continuing to drop up to 2020

• Sector response been good in terms of cost

reduction, efficiency and improving productivity

• This only takes us so far

• We now need to seek out income generation

opportunities to offset budget cuts

• Need for a commercialisation strategy

• Time for a spirit of municipal entrepreneurialism

www.apse.org.uk

www.apse.org.uk

Contact details

Chief Executive

Email:

Twitter: @apsetweetsAssociation for Public Service Excellence

2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road, Old Trafford, Manchester M32 0FP.

telephone: 0161 772 1810fax: 0161 772 1811

web:www.apse.org.uk