Reorganisation is a rare chance for local leaders to make services better for everyone, says Norse Group Chief Executive Justin Galliford
You may not realise it, but Surrey has been helping central government evolve for generations. Whether it’s public services or Whitehall departments, someone from Surrey has enabled change that has benefitted all of us.
People who have become prime minister, health secretary, chancellor or senior leaders in policing have all started in Surrey. It’s a place where outstanding people find innovative ways to get things done.
Local government is no different and that’s why Surrey was chosen early for council reorganisation. It wasn’t a random decision; Whitehall is waiting for Surrey to create the blueprint for Britain’s local services and I think there’s an opportunity to create something even better.
From April next year, your 12 local councils will be replaced by just two unitary authorities – East and West Surrey Council. Preparations are already being made by the shadow councillors elected in May this year.
It’s not simply a few appointments and office moves: a typical council has around 800 functions with major responsibilities such as social services, public health and highways. The critical issue is service continuity, or as we call it resilience. Ensuring bins are emptied is only one small but very visible sign of business as usual. When there are wildfires or floods, your council has to respond. Older people still need support and come winter, the roads will need gritting.
So, merging 12 organisations into two isn’t going to be a simple task; if a council service or facility isn’t in place there could be problems. The good news is that both new councils are getting government support and their new leaders will be determined to get the job done.
Having a deadline really helps but I think the risk is that the opportunity to create outstanding services to tackle longstanding problems could be missed in the rush to beat the clock. It all starts in deciding whether to deliver what people need either inhouse or getting an outside firm to do it.
Let’s use the example of highways maintenance which sounds simple but is actually tricky. There will be multiple contracts, either with private firms or other councils to rethink. A contract signed two years ago to create a badly needed road junction must still be completed and signed off. An outsourced, multi-year contract for streetlight maintenance will have to be renegotiated. This is going to be multiplied across all the major council functions.
The unknown issue is whether the new organisations have the capacity to deliver. A lot of experienced staff may decide leave when their council is replaced.
The rationale for council reorganisation was that it could save money but the risk is that simply transferring existing contracts will seal in cost rises that cancel out any savings.
There is another option that keeps cash in the public sector accounts and keeps up with demands for change. A local authority trading company (LATCO) delivers services, like highways maintenance, but doesn’t charge a huge profit.
Norse Group, which I lead as Chief Executive, is already successfully doing this across England with partnerships in Essex, Yorkshire, Devon and more. We’re also running training programmes to get people back into work in the communities we serve.
Whitehall wants your two new councils to deliver something other than more of the same. A blueprint for services that includes LATCOs can continue Surrey’s enviable record of success.
