Councils to outsource a third of services by 2015

Aaron Morby 13 years ago
Share

Local authorities plan to outsource 32% of all services by 2014/15 as they seek to harness private contractor efficiencies, according to research by YouGov.

The research commission by Interserve found outsourcing has already grown 6% from around 20% of all council services a year ago.

Councils claim to have made savings of 16% to date, but need to find another 18% by 2014/15.

Those councils looking to make greater than 25% efficiency savings or with larger budgets of over £100m plan to outsource up to 60% of all services.

Yet other councils aim to keep resources in house or share with other public sector providers, planning to outsource just a fifth of services by 2014/15.

Adrian Ringrose, chief executive at Interserve said: “Forward thinking councils are aware that they need a transformational change given the severe pressure on budgets for the foreseeable future.

“And 38% of councils consider there to be no service area, including Children’s Services and Public Protection, unsuitable for outsourcing.

“Although the results show that a percentage of councils continue to procure more traditional service models, the challenge of meeting these current targets while not reducing the level and quality of services will require councils to radically rethink how they procure services.

“In our experience if the delivery model is focused around results and not processes, the private sector can support councils in their focus on delivering improved front line services.”

The report also found that:

  • 44% of councils state local political concerns are a serious barrier to outsourcing.
  • 44% of councils still haven’t implemented a strategy to deal with their budgetary challenges to 2014/15, down from 79% this time last year.
  • 81% said outsourcing to a commercial partner had been successful, and 82% believe that outsourcing has a role to play in achieving their targets.
  • Councils expect only 20% of outsourced council services to be provided by the third sector by 2015; and half to be provided by commercial providers by 2015.
  • 16% fewer councils believe that the voice of the community will affect future measurements compared with 2011’s results.
  • 57% believe that Community Budgets will have no effect (41%) or even reduce (16%) councils’ ability to meet their targets.
  • Councils expect a 15% reduction in the size of their built estate.

The full report ‘Local services – in need of transformational change’ is available to download free of charge from www.local-government.interserve.com.

Latest news

Morgan Sindall upgrades profits forecast for this year

Overbury fitout and construction operations exceed trading expectations
3 hours ago

Major project bidders to face ‘British jobs’ test

Contractors to face tougher jobs pledge scrutiny under new procurement shake-up
22 hours ago

Green light for £32m Wythenshawe Culture Hub

Construction to start this year on first phase of £500m town centre revamp
4 hours ago

Hercules delivers record first half as HS2 fuels growth

Labour supply specialist says HS2 demand climbing with 630 workers now deployed
3 hours ago

Private equity firm acquires Hepworth Clay pipes business

Historic UK drainage manufacturer sold by Wavin
3 hours ago

Balfour Beatty names new Scottish MD

Nick Rowan to take reins as Hector MacAulay to retire after 40 years
19 hours ago

£500m rail deal locks in future for Scunthorpe steelworks

Government-backed deal with Network Rail safeguards UK production
2 hours ago

Morrison rides in for £19m mountain bike R&D hub

Flagship Borders cycling R&D hub set for Caerlee Mill site
23 hours ago

Revised plan submitted for Manchester landmark towers

400 more flats added to Albert Bridge House scheme
1 day ago

Job losses loom at consultant GHD

Redundancy consultation underway with jobs at risk
1 day ago

Knight Harwood lifts margin to 4.9% as profit hits £6.5m

London specialist sees strong office and luxury resi pipeline
1 day ago

Hampshire launches £150m minor works reboot

General builders, M&E and roofing firms invited to apply
1 day ago

Winners named for £2.6bn NHS SBS Modular 3 framework

Twenty-seven secure spots on health, education and resi framework
4 days ago

Leeds kicks off homes vision for Elland Road regeneration

Council plans to deliver 2,000 homes around United’s revamped stadium
4 days ago

Former Mace deputy chairman Mark Holmes awarded CBE

King's Birthday Honours spotlights industry's architecture and environment achievements
1 day ago

Britcon targets £70m turnover after string of framework wins

Major AMP8 win and regional expansion fuel contractor’s biggest growth push yet
4 days ago

Go-ahead for 37-storey tower at Leeds Merrion Centre

Town Centre Securities to deliver over 1,000 student rooms
4 days ago

Taylor Wimpey fined £800k after apprentice falls down stairwell

Teenage brickie injured after falling with pile of concrete blocks
5 days ago

Green light for life sciences buildings in campus expansion

Construction to start this year on Wellcome Genome Campus in South Cambridgeshire
4 days ago

Morgan Sindall scores £63m twin wins on flagship leisure projects

£36m Southampton and £27m Bishop Auckland jobs get underway
4 days ago

Hill and L&G partner on £450m Coventry city centre revamp

Partners to deliver opening phase of 991-home City Centre South scheme
5 days ago

Graham snaps up sector veteran to lead office fit-outs

Peter Allan most recently held director roles at ISG and Overbury
4 days ago

Construction growth of 0.9% bucks wider shrinking economy

Construction output climbs for third straight month
5 days ago

Crest Nicholson returns to profit

House builder back in the black after huge fire safety provisions last year
5 days ago

JN Bentley profit surges as revenue tops £500m

Surging water work and plant investment underpin £19m profit
5 days ago

Willmott Dixon bags £49m East London business school job

Builder secures second job in a year for Queen Mary University
5 days ago

Another extension for competition probe into house builders

Spotlight will stay on seven housing giants for another few months
6 days ago

Strike ballot for 1,500 Sellafield construction workers

36 contractors working on nuclear clean-up could be hit
5 days ago

WSP to buy Ricardo

Consulting giant to add another 2,700 staff
6 days ago

Infrastructure and major projects boost profits at Vp

Specialist construction, water and transmission sectors are star performers
6 days ago

Contractor services