Improved productivity in public sector could save region £141m

THE cuts in public spending has provided the opportunity to reshape the relationship between the state and its citizens, the former chief executive of Bradford Council has said.
Tony Reeves, who resigned in July after eight years to join Deloitte, was part of a team of advisors presenting analysis that showed improved productivity in the public sector could save the region £141m.
Deloitte’s The State of the State 2014 report, written with independent think-tank Reform, was this week presented to Yorkshire and Humber council chief executives who are leading local authorities that are battling with huge cuts in core funding and, in many places, soaring costs caused by changing demography.
Mr Reeves, Deloitte’s local government advisory partner, said: “Although things are very bleak going forward, because they are so bleak there is the opportunity to reshape the relationship between the state and its citizens. It isn’t a question of hanging on until things get better.
“The cavalry isn’t coming over the hill. The challenge now is beyond efficiency.”
Ed Roddis, Deloitte’s head of public sector research, added: “I think the good thing about looking at this challenge as a productivity one is that we are talking about what can we do better to deliver the value.
“That’s a really constructive conversation to have. A conversation about efficiency is about what we can save and what we can cut – and that’s where we run into problems.”
The report calculates that every one per cent of public sector staff time saved through a productivity measure is worth £1.64bn a year, of which Yorkshire and Humber would contribute £141m.
Although the figure is theoretical – it would not create a pile of unspent cash – it is used by the report’s authors to provide a sense of scale as to the impact of productivity improvements.
The report said: “The State of the State suggests that four areas of public sector productivity can be explored: talent and ways of working, technology, policy delivery and process.
“Much can be done to make productivity gains by making sure that public bodies have the right people with the right skills in the right jobs; that technology is used to good effect; that policies provide the right incentives for change; and that processes are focused on delivery.”

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