Paul O'Brien - Chief Executive

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Alternative models of service delivery - a price worth paying?

by Paul O'Brien Thursday 15 September 2011

A huge debate is taking place at present about which are the best models available to divest public services through. I have got to say I remain to be convinced. Whatever service options local authorities decide to pursue in future the benchmark against which to appraise the options is the existing in-house service. Does any alternative form of provision meet or surpass the benefits that managing services directly yourself brings.

These benefits are:

Firstly, high quality, value for money, service provision.

Secondly, the retention of public resources within the local economy and the avoidance of leakage from the local area. This point was covered extensively in our Economic Footprint research in Swindon that showed for every £1 spent by the council on services £1.64 circulated in the local economy.

Thirdly, the ability to act as a market regulator to ensure the Council achieves a fair price over the long term.

Fourthly, being an employment standard setter in promoting fair employment practice, skills training and apprenticeships. 

Fifthly, joining up wider public policy and council corporate objectives by integrating this into and across service delivery, an example of this being responding to climate change.  

Sixthly, the contribution made to financing and supporting the democratic and corporate core of the council.  

Seventhly, the flexibility to change priorities and reduce budgets without having to revert to a contract. 

Eighthly, being responsive in a crisis such as the recent riots, the vast majority of councils street cleansing teams had already returned the streets to normal by the time the public had arrived the following morning.  

Ninthly and finally, being democratically accountable to elected members and being focused on the community because the workforce from top to bottom are predominately from the community. 

In my view this list is non-exhaustive but is an important contribution to the debate on future service delivery models and is one that cannot be ignored. A number of elected members have remarked to me in the past that you often don’t realise the value of what you had, until it’s gone.

The housing crisis is back

by Paul O'Brien Monday 05 September 2011

The housing crisis is back. For many in local government dealing with the consequences of homelessness, overcrowding and poor stock condition, it has never really gone away. The difference is that the problem is now reaching previously untouched sectors of society – and it's about to get worse.

Home ownership is predicted to drop to 63%, its lowest level since the mid 1980s, a whole generation are 'locked out' of the housing market, and there is chronic lack of supply of new homes, according to the Oxford Economics' report that recently hit national headlines.

The National Housing Federation is calling for greater Government investment in affordable housing and points out that this would stimulate economic recovery. I couldn't agree more.

With rents also predicted to rise by 20% over the next five years, investing in affordable housing is a glaringly obvious win-win solution. The market is unable to meet people’s needs at present and stimulus is required.

Investment in additional affordable homes would be welcome regardless of the provider. But we at APSE believe local authorities are geared up to deliver as house-builders alongside their strategic housing role.

Councils of all sizes, locations and political colours have risen to the challenge of building environmentally friendly homes to tight deadlines in ways that have benefited their local economies in the past two years, using short-lived HCA Local Authority New Build funding.

The HCA's latest affordable homes programme acknowledges the local authority development role and the forthcoming self-financing regime will allow councils more local control over housing resources – thus strengthening the potential for councils to build.

Association of Retained Council Housing earlier this year looked at the sums. Firm Foundations shows councils can borrow at Public Works Loans Board rates and recoup the money from rents.

It must also be remembered that homelessness and poor housing is costing £2.5bn a year for health services and £1.8 bn a year in policing. On the plus side, £1 investment in new housing can generate £3.51 of economic output.

There is a strong business case for Government investment in housing to give the ailing UK-plc a much-needed boost. Not to mention avoiding the misery of people living in inadequate housing or without homes at all.

I made the same point in this column a year or so ago, but it's a point we obviously need to keep repeating. Putting a decent roof over your head is no longer just a problem for the poorest people and the councils that support them. It is a problem for everyone – and addressing it pragmatically would surely be a vote-winner.

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