Fresh calls for fundamental rethink
Author: Scottish Herald - Nov 9, 2009
A sweeping programme of self-imposed cuts, reforms and contracting out of services by Scottish councils is recommended in a report by KPMG and Localis.
The Bottom Line – a vision for local government published today by KPMG and Localis, suggests a fundamental rethink of the whole role of local authorities, who are urged to move away from being service providers towards reinventing themselves as "commissioning and procurement hubs".
Councils are told they should set self-imposed targets to cut spending by 20% within the next two years – reductions even more drastic than those considered necessary by the Auditor General last week in his report warning the Scottish Government that it could face a shortfall of almost £3 billion by 2013-14, equivalent to about 10% of current spending.
Jenny Stewart, head of public sector at KPMG, said the latest study was particularly timely because it suggested ways to meet the challenge of last week’s report.
She said: "With almost 10% of UK GDP flowing through local government in one way or another, councils are at the forefront of the reform of public finances. Many parts of local government are innovative and progressive.
"However, some of local government is still struggling with implementing modernisation. This report offers insights and ideas for those in local government that are interested in a fast journey to excellence and meeting the challenges raised by Audit Scotland’s report."
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