Calls for greater efficiency from councils

In the current economy local authorities need to deliver vital services even more efficiently - and the Roots Review has shown millions more can be saved through improved procurement, the Local Government Minister said today.

Bill Roots carried out an urgent review of local government procurement to identify more ways to help councils reach their three% - over £1.5billion - annual savings targets. The last assessment took place back in 2001.

The report makes a series of recommendations to help councils generate more efficient procurement processes. In particular it identifies strengthened Regional Improvement and Efficiency Partnerships (RIEPs) as a key way to improve practical procurement advice and the 'best buy' information available.

Prompt action is vital to meet the needs of the economic downturn. The Government welcomes the stronger role for RIEPs and expects them and councils to act rapidly on the recommendations. A funded implementation plan will be announced in the Budget as part of the Operational Efficiency Programme.

In addition the Government will work closely with the Local Government Association, Improvement & Development Agency and RIEPs to implement a more creative, collaborative and co-ordinated public sector procurement.

John Healey said: "In the current economic climate councils need to make every council tax pound stretch that much further, and one way efficiency savings can be found is through smarter procurement practices.

"In many cases councils are already delivering significant savings but, with everyone feeling the pinch, they must examine every function to see how they can work even more efficiently to keep council tax down.

"As with the rest of the public sector, councils now need to make at least three per cent (£1.5bn) annual savings - worth £90 off the average Band D council tax bill - without cutting vital services.

"The recommendations in Bill Roots's report are straightforward suggestions to help councils and using RIEPs to compare the best deals could make a real difference."

The Comprehensive Spending Review (CSR07) tasked English councils with collectively making £4.9bn of efficiency savings, with the expectation that nearly 60% (£2.8bn) would come from smarter procurement. Councils have considerable spending power - in 2007, local government spent £42billion on external contracts, 40 per cent of total spending.

Government has already ensured councils are getting the support they need through the £185million funding over three years for the nine Regional Improvement and Efficiency Partnerships (RIEPs), and has announced plans for a £115million Efficiency and Transformation Fund for councils.

The RIEPs are already helping councils reach their local targets and priorities, assist them in working collaboratively to make savings, and counsel each other how to overcome obstacles and challenges.

In addition, the formation of nine new unitary authorities will drive a root and branch improvement in the delivery of local services and help deliver savings of over £100m each year.