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Services for local authorities

How we can help you deal with the deficit and service transformation

Following the Chancellor’s emergency Budget delivered on 22 June 2010, the scale of cuts facing Local Government has emerged.  It is clear that significant issues will be faced by public sector organisations over the coming months and years.

The Budget revealed that public sector net borrowing will be reduced from £149bn this year to £20bn in 2015-16 although not all areas of the public sector will share the pain.  Whilst the NHS will see continuing real increases in resources throughout the Parliament, other departments will face an average real cut of around 25% over four years.  Local authorities will no doubt be under pressure to exercise pay restraint, to transform services and generate income which will add further pressure.  Not only will local authorities be expected to make substantial cost savings, there will be pressure not to diminish the quality and availability of front line services.

What issues are facing local authorities?

Many issues face local authorities including:

• Redundancies
• Changing terms and conditions of service and flexible working
• Performance management
• Strikes and industrial action
• Potential impact on the equal pay agenda
• Pensions issues
• Outsourcing and Strategic Partnerships
• More efficient use of assets and council premises
• Achieving the green agenda
• Abolition of RDAs and the formation of Local Enterprise Partnerships
• Renegotiating contracts including review of funding for BSF and Academies
• Income generation, charging and trading
• Shared Services and service transformation 

What are the consequences of not tackling these issues?

The consequences of not dealing with any of the above issues effectively are many and varied, but the main consequence may be that your organisation will not achieve the efficiency savings necessary to meet government targets. 

How can Eversheds help you tackle these issues?

Eversheds is the leading local government legal provider in the UK. We have a team of lawyers with vast experience of working with clients on all aspects of local government issues including:

• Redundancies - are your redundancy, the organisation and severance policies up to date?  What selection criteria would be used in any redundancy situation; does objective performance evidence exist?
  
• Changing terms and conditions of service - have you considered flexible working, reducing remuneration packages as well as reducing contractual benefits?
  
• Performance management - do you have a robust performance management regime which deals with poor performers, or do your HR policies and procedures need reviewing to assist with this?
  
• Strikes and industrial action - are you prepared to face the traditional strength of the public sector unions?  How can you deal with this at local level?
  
• Potential impact on the equal pay agenda - despite the cost to the authority, failure to implement single status will lead to continuing equal pay claim liability.  Are you ready to deal with this?
  
• Pensions issues - have you thought about the pensions implications of severance and redundancy and reviewed your policies on voluntary severance and pension entitlements?
  
• Assets and more efficient use of council premises - have you adopted more flexible working to free up assets for alternative use or disposal and considered asset vehicles or partnerships to stimulate regeneration?
  
• Contract renegotiation - can you renegotiate contracts whilst minimising the risk of challenge?
  
• BSF and Academies - do you want to challenge?  Do you need to re-plan your schools strategy?
  
• Income generation - have you reviewed fees and charges and your ability to trade?  Do you want to set up a trading company? Would a workshop assist?
  
• The challenges to achieve the green agenda - are you up to speed with the CRC and have you considered renewables and the ability to generate income from the FIT?
  
• Outsourcing - what are your options; how will services be transformed?
  
• Shared services and strategic partnerships - have you made the most of the opportunities available to you?
  
• Minimising the risk of challenge - are health and safety policies clear; do you have strong systems and procedures to withstand civil and criminal challenge?

The tip of the iceberg

These questions are only the tip of the iceberg, so do contact an expert for further information and advice.  Not only do we advise local authorities, we can advise on similar issues affecting central government, education and health.

Get in touch

If you would like further information please contact one of our partners or, alternatively, fill in your details in the online form below.