Council leaders unveil plan to cut bureaucracy

A reform programme to deliver billions of pounds worth of savings by cutting a swathe of bureaucracy and the quango state is published today by town hall leaders.

The strategy to streamline the state sets out detailed plans for savings worth up to £22.5 billion over the lifetime of this Parliament – without affecting front-line services.

Far-reaching reforms to devolve power over public spending to local people, axing costly middlemen and stripping away unnecessary bureaucracy in the public sector could deliver dramatic further savings, according to proposals produced by the Local Government Association, which represents more than 350 local authorities in England and Wales.

The LGA has long argued that there is clear evidence of waste and unnecessary bureaucracy from a maze of public sector bodies trying to achieve the same goals, duplicating efforts and creating a plethora of bureaucratic funding streams and audit arrangements. Research has shown that every extra tier of administration in the public sector sucks up 10-20 per cent of total funding.

Under proposals published today, town halls will offer front-line expertise to Ministers and officials in the Treasury and other departments to identify major savings by simplifying the maze of organisations and bureaucracy which stand between Whitehall and services for people and deliver radical reform of the public sector to cut costs and improve services.

The reform programme includes:
*Specific proposals for cuts to central bureaucracy and red tape worth £4.5 billion a year, or up to £22.5 billion over the five-year Parliament.

*Giving elected councils control over local spending through local “area budgets” – reporting direct to Parliament - cutting out costly quangos, funding agencies, ring fenced budgets and excessive reporting requirements.

*A national productivity programme to identify further efficiencies in local government through greater sharing of back-office functions, running joint services and workforce modernisation.

*A tough new system of self-regulation for councils, to ensure that high-performing town hall experts can step in to help any authority in difficulty and guarantee world class standards of services.

Dame Margaret Eaton, chairman of the LGA, said:

“We all know that deep cuts in public spending are needed and that conventional ways of achieving savings will simply not be enough.

“We need nothing less than a transformation of the way the public sector works to deliver a bonfire of the bureaucracy that all too often suffocates local innovation, a radical scaling back of the quango state and giving power to the people who know their areas best.

“Our plans would save taxpayers £22.5 billion over this Parliament, without damaging vital front line services. But that could just be the start. There are enormous opportunities to save billions more if we grasp the nettle and cut out the middlemen who tie up huge sums in needless red tape.

“Councils are determined to work with the Government to root out waste throughout the system so they can get on with delivering the highest standards in public services for millions of people.”