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
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STATE OF THE MARKET 2016
Transport, Refuse, Street Cleansing and Parks
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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
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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
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The pillars of excellence
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Efficiency Innovation
Income Generation
Demand Management
Public policy challenges
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Income generation
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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%)
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Who are the public entrepreneurs
and innovators?
Catalysts Stewards
Mediators Deliverers
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Innovation
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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