Cutting costs

As accountant KPMG's local government expert, Iain Hasdell, warns, many local authorities will have to make savings of 30 per cent next year in order to remain viable entities, and that this will entail the scaling back of "back-office" operations.

The scope here is enormous, given the extent to which neighbouring town halls duplicate certain administrative and personnel functions. If there is sufficient will, resources can be pooled effectively – as Yorkshire's four police forces have repeatedly demonstrated.

This is further illustrated by the South Yorkshire and Humberside forces looking to share a human resources director, the type of enlightened thinking that should be taking place across the public sector.

This shared use of an assistant chief officer has two benefits. It means South Yorkshire Police does not to add to its senior management structure and the savings accrued will make it easier for both forces to protect police numbers. If this collaboration was replicated by every police force, and at every town hall, the savings would be considerable.

The challenge, however, is a still formidable. This approach requires a change of mindset as it will lead to a diminution in the number of highly-paid executives, the very people who are tasked with identifying the savings that are being proposed.

Are council high-fliers, and others, up to the task? They need to be. For, in the weeks and months ahead, no aspect of the public sector will be immune from the cuts. But, as they prepare to take difficult decisions, one premise remains the same – the best services are, invariably, those with the most minimal bureaucracy because the right procedures are in place from the outset.