Grant Thornton Comments On The NLGN Report On Total Place

Source: Grant Thornton
Published Thursday, March 18, 2010 - 09:34

Commenting on the New Local Government Network (NLGN) report on Total Place, published today (Thursday 18 March), Karl Eddy, Head of Government and Infrastructure Advisory at Grant Thornton says:

"Vertical interests within public services severely undermine their operations resulting in significant duplication and waste. For example, one Total Place pilot estimated that it costs national, regional and local organisations £135m to spend £176m on projects.

"With fiscal tightening expected to reach 6.5% of national income in 2017-18, demands for savings from the public sector are anticipated upwards of 11% over the next four years, with some predicting much more dramatic cuts in budgets. It is estimated that nationally, public sector property assets have a book value of £370 billion with annual running costs of £25 billion. Pilots are indicating that 10% can be realistically saved from the integration of asset management across a locality. London Councils have claimed that the Capital can save 15% of its budget (£11 billion a year) by adopting more innovative service delivery models.

"NLGN's research findings support what those who have been involved in Total Place activity over the past year already know. The concepts and thinking that underpin the Total Place programme have to be pursued if the public sector is to successfully navigate the financial storm that will undoubtedly hit local and national government following May's election. This will not be easy. It will require strong leadership at all levels of the public sector, and a radical shift in the mindset of how public sector resources are used to deliver high quality services to citizens from a significantly lower cost base."

Grant Thornton has co-sponsored the New Local Government Network (NLGN) report - one of the most detailed studies so far on Total Place.  The report's findings are wide-ranging, but it highlights some of the following:

    * A Total Place approach can provide solutions for some of the emerging challenges facing the public sector and society more generally. For example, using public sector assets more efficiently across a locality can support the Carbon Reduction Commitment for better management and reduction of energy consumption across the public sector estate.
    * Strategic commissioning across a locality is emerging as a crucial component to many of the solutions, with the local authority becoming a commissioning rather than a service delivery body. Such approaches can take into consideration the wider consequences of spending decisions, such as the effect on local economic prosperity.

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