At a time of economic hardship for many of our communities and with major reductions in public spending, it is important to understand the value that local authority services bring to the local economy, helping to sustain employment and supply chains.
The challenge is the measurement of the local economic value of the public economy, i.e. the economy derived from public spending and national taxation.
APSE will use the Local Multiplier 3 (LM3) model of economic spend analysis. This provides a research and measurement tool for local authorities to demonstrate and evidence the local economic value of service delivery.
LM3 methodology utilises three rounds of economic spend analysis:
- Round 1 – analyses the total spend of the service department/activity;
- Round 2 – analyses the spend of the service department/activity upon local suppliers and direct local employees;
- Round 3 – analyses the re-spend of local suppliers upon their own local employees and upon local sub-suppliers; and the re-spend of direct employees upon activities in the local economy.
Through a mixture of background research and questionnaires for staff and suppliers a report is produced providing a robust evidence base demonstrating the strategic and financial benefits that the public sector can deliver both through direct employment, employee re-spend and supply chain. You will also be given an overall figure to show how much money this is going to create for every £1 spent / invested by your service.
APSE, along with the Centre for Local Economic Strategies (CLES) has pioneered an approach to measuring the local economic multiplier effect of council front-line services in terms of both procurement and employment spend. This pioneering research carried out in Swindon, South Gloucestershire and in West Lothian shows some remarkable results and demonstrates the vital roles played by local public services in helping the local economy against external shocks brought about by local economic forces, financial crises and recession.
For example in West Lothian the economic multiplier of the Neighbourhood Environment Team and Land Services is 71 pence for every £1 invested.
The typical cost of this work is around £8,000. However, please contact us on the details below to discuss your requirements.
- ‘ Economic footprint of West Lothian operational services’ 2010
- ‘Creating Resilient local economies: exploring the economic footprint of public services’ 2008
For further information on consultancy services, please contact:
- Andy Mudd, Principal Consultant
- Gayle Gibson, Senior Consultant
- Davina Rai, Client Co-ordination Officer
Or telephone APSE on 0161 772 1810 for an informal discussion on how we can help you or about any of the other services APSE provides.
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For information about other APSE consultancy offers, please use the links below.