ESSENTIAL STRATEGIES TO DRIVE EFFICIENCIES

PUBLIC SERVICE REFORM, PARKING ANDCOST REDUCTION

Lord Geoff Filkin Parkex 2011

Public Service Reform, Parking and Cost Reduction

The fiscal crisis and the rescue plan

A different view of the state

Transformed supply side

Implications for local government

Re-thinking costs and services in parking

Make or buy – on street services

Make or buy – back office functions

The Fiscal Crisis – its causes

Entered global down-turn with growing fiscal deficit

Ever growing calls for state action and spend over recent decades

Now state running a deficit of 12% of GDP

Aggregate debt rising and will hit 80% of GDP

Not simply a short-term problem

A bigger crisis - the costs of longer life expectancy

A coalition government with no choice but to address or markets would punish.

The Rescue Plan

Aim to cut the deficit within 4 years

2/3rds by cuts to service spending, 1/3 by tax rises

Radical reviews of what the state does

Massive four year budget cuts to departments, local government and police

Reductions in public service pay and pensions

Major welfare cuts – later retirement, fewer and more conditional hand-outs

The markets and IMF have welcomed the resolve

A Different View of the State

From “Big” to “Small” government

• Reduction in size of central government

• Decision making devolved

• Fewer solutions dictated from the centre

Question state actions and whether necessary and effective

UK is over-centralised, inhibiting individual and community action

Empower individuals and communities

Transparency, not targets or regulation

Radical changes to health, schooling, local government and welfare

Changes to CG’s pay, pensions and redundancy terms

At same time as massive budget cuts!

Transform Supply Side

Devolve power and budgets to users if possible

Or give users choice – of schools, hospitals etc

Promote a much more diverse supply side

End state monopolies

Remove inhibitors to outsourcing – two-tier code

Pay for results or benefits, not inputs

Never seen such a wide and radical agenda for change

The public accept the need for action, but the pain has not yet hit!

Implications for local government

Toughest settlement for decades

A tightening ratchet and a long term challenge

Reduced central demands and controls

But controls on level of council tax rises

Requires a fundamental review of everything we do

And how we do it

Tinkering will not work

Requires strong political and managerial leadership

Re-thinking services and costs

No sacred cows –neither services nor methods

Review what gives value to the public

Parking is unusual as can be cost neutral or better

Re-think what we do, how we do it, how we buy it

Use buying power of public sector

LA’s do many things on a small scale

Economies of scale, scope, specialisation and technology

Fundamental reviews of front, middle and back office functions

Re-thinking parking service’s costs and services

Not parking alone but congestion, vehicle and street scene management

At worst a zero-cost service

Maximising compliance – bus lanes

Proportionate enforcement and deployment

Self service – on line or on phone parking charges

Transform through technology – ANPR monitoring

Make or buy - On street services

Many of the biggest and best authorities have outsourced:•Process efficiency greater

•Better technology and its use

•More productive hours and lower employment costs

If put to market – aim for at least 20% cost reduction

How procure to save most – scale, term etc

County wide service with districts to be cost effective

Combined procurements –even greater savings?

Wider services – an end-to-end parking service?

Back Office services

Back Office services

They can be outsourced

But not the final decision

Who has done so to date – TfL, Westminster, Oldham and others

Next area for major savings in parking

Effects of government changes, e.g. Cabinet Office guidance

Why it might be cheaper – as for on street plus business processing

Scale of savings possible – aim for at least 25% less cost

Outsourcing options:- On street alone

- Back office

- Both together

- Multiple authorities

Go for biggest savings - not salami slicing

ESSENTIAL STRATEGIES TO DRIVE EFFICIENCIES

THANK YOU