total place: london’s public spending
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Total Place: London’s public spending. Urban & Regional Economics Lent Term Seminars LSE London 25 th January 2010. Dick Sorabji Corporate Director Policy & Public Affairs. What is Total Place?. CLG sponsored pilots HMT & Cabinet Office support 13 pilots April 2009 to April 2010 - PowerPoint PPT PresentationTRANSCRIPT
www.londoncouncils.gov.uk
Total Place:London’s public spending
Urban & Regional Economics
Lent Term Seminars
LSE London
25th January 2010
Dick SorabjiCorporate Director
Policy & Public Affairs
www.londoncouncils.gov.uk
What is Total Place?• CLG sponsored pilots
– HMT & Cabinet Office support
– 13 pilots
– April 2009 to April 2010
• A whole area approach• Doing better with less• 70~ informal pilots
– Individual authorities
– London mapping
• Strands– Counting
– Culture
– Customer insight
Trying to go beyond SRB, LAA and MAA
www.londoncouncils.gov.uk
Total Places: what & whereTotal Places1. Birmingham
2. Bradford
3. Coventry, Solihull, Warwickshire
4. Croydon
5. Dorset, Poole, Bournemouth
6. Durham
7. Kent
8. Leicester & Leicestershire
9. Lewisham
10. Luton & Central Bedfordshire
11. Manchester city region & Warrington
12. South Tyneside, Gateshead, Sunderland
13. Worcestershire
Policy Themes
• Alcohol & drugs
• Health & social care
• Children
• Crime
• High cost communities
• Young people & employment
Targeting wicked problems in diverse communities
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Total Place : in its place• Technology & public services• Streamline central government
– Senior Civil Service– Sharper delivery
• Government efficiency– Including re-location
• Total Place & Performance – Central local frameworks
Competing to be a priority in government response to public finance pressures
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Total Place: drivers & destinations• Driven by:
– Weaknesses in silo delivery
– Public finance squeeze
• Method:
– Looks at all public service in a place
– Identifies overlap and duplication
– Redesigns to improve service & efficiency
• Goals:
– Operational outcomes
• Service transformation plans
• Early efficiencies
• Understanding multi-organisation delivery
– Strategic outcomes
• Creating incentives to innovate locally
• Changing central government
Total Place is a theory as well as a national initiative
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London Councils’ local audit:PwC thinking with numbers
• New perspectives– By policy area
– By organisational crowding
• Deeper investigation– Managing chronic care
– Obstacles to work
– Whole system approach to youth offending
• Different focus to Total Place pilots– Central government reform
– Local solutions to national problems
• Organisational evidence for London policy proposals
Focusing on the conditions for success more any one success
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Total State spending in London
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London locally managed spending
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London public spending 2008/09£millions National NDPBs Local Total %
Defence 5 0 10 15 0
Recreation 365 100 710 1170 2
General 290 10 980 1280 2
Housing + 120 1190 1840 3150 4
Environment 210 80 870 1160 2
Economic 2310 840 4520 7670 10
Public order 2160 300 3930 6390 9
Education 2380 2520 7550 12450 17
Health 7800 280 7360 15440 21
Social Protection
15530 330 9050 24900 34
Total 31200 5600 36800 73600
www.londoncouncils.gov.uk
London spend viewed from WhitehallRank Department Spend £m
1 DWP 11,119
2 DH 8773
3 HMT & HMRC 2754
4 DCFS 2065
5 DfT 2046
6 DIUS 1445
7 HO 938
8 MoJ 912
9 CLG 509
10 DCMS 439
11 MoD 280
12 Defra 231
13 DECC 136
14 BERR 112 2008/9 figures
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NDPB London spending Categories Spend £m % Number of bodies
Economic 838 15 60
Recreation 96 2 37
Education 2524 45 21
Health 276 5 14
Public order 300 5 14
Social Protection 329 6 8
Housing & Community
1190 21 6
General 10 0 5
Environmental 78 1 4
Total 5642 169
2008/9 figures
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Players in one policy area:Economic Affairs Type Organisation Spend £m
Local Local Authorities - transport 4358
National National Bodies 2314
NDPB JCP 171
NDPB Big Lottery Fund 171
Local Local authorities – not transport 164
NDPB EPSRC 118
NDPB Technology Strategy Board 56
NDPB Health & Safety Commission 47
NDPB BBSRC 41
NDPB HSE 23
NDPB Horse Race Betting Levy Board 18
NDPB FSA 11
NDPB Visit Britain 10
NDPB Others 1272008/9 figures
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Hidden ideas in Total Place• Reorganisation
– Not practical
• Collaboration:– Aligns delivery
– Supports person focus
– Unlocks new delivery chains
– Accelerates innovation
• Major influences on public services– The national policy environment
– Lack of local incentives
Total Place as a critique of the traditional Whitehall approach
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From efficiency to innovation
Efficiency savings
• More tasks per hour• Bulk purchase savings• ‘Invasive’ control
systems• More ticket machines
• Doing things better
Process improvements
• Eliminate tasks• Different purchases• ‘Automatic’ control
systems• Oyster Card
• Doing better things
Thinking differently delivers more than squeezing harder
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London Councils’ Strategic Themes• Devolution – because we believe devolution to our boroughs ensures
better results for Londoners
• Partnership – because we believe our partnership expertise delivers local feel and London scale; so driving innovation and efficiency
• Democracy and trust – because we believe clear accountability and real engagement with Londoners happens best at borough level. London boroughs aim to be every Londoner’s first choice for a fair hearing and a fair deal
• Resources and risks – because we believe London boroughs have the confidence and talent to take on challenges and the associated risks that others are too remote to handle.
Total Place can help map out our vision of a new relationshipbetween central and local government
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Managing chronic care• 1.3m registered cases• 900,000 with 3+ conditions• 72% hospital bed days• 65% out patient appointments• Costs in London £5 billion
– £3 billion NHS, £2 billion social services
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New approaches to chronic care• New approaches
– Prevention & early intervention– Self directed care– Joint service design
• Diabetes £590m– Projected saving £100m
• All chronic care extrapolated– Saving £880m, 18%
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Anti social behaviour• Cost to London public services £500m
– Local authority costs £330m
• Youth Offending Teams– £150m related costs
• Economic costs– Lifetime truancy extrapolated costs £500m
• Londoners in prison costs £900m– 18,000 adult Londoners in prison
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New approaches to ASB
• 16 types of public service organisation
• New approaches– Personalised interventions– Early action– Systems joined up locally
• Projected savings to the state £85m
• Economic & social savings uncosted
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Obstacles to work• Cost of worklessness £5 billion• New approaches
– Jointly designed– Devolve to integrate systems
• Integrated case managers– Retain central system– Incentives for individuals & organisations
• Projected savings £630m– Increased tax £440m
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Implications of PwC research• Drivers of better with less
– Early intervention
– Life stage gap identification
– Personalisation• Self direction – guided & unguided• Designed by and around the person
– Integrated case management
– Not re-organisation but:• Devolve• Integrate funding streams
• Outcomes of better for less– £10.65 billion analysed
– Projected £1.6 billion saving – 15%
– If could apply to all state spending in London saving ~ £11 billion
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Total PlaceIn
context
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Total Place: changing public service?
• Delivery chains– Process improvement– Citizen driven
• Networks– Common values– Common outcome targets
• Relational markets– Commissioning driven– Scale to influence suppliers– Personalisation close to the customer– Market platforms integrating the two:
• eBay
Routes to collaboration without permanent merger
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First steps in process improvement• Customer focus is efficiency focus• Processes often designed for a structure that was
replaced long ago– Between departments– Within departments
• IT provides management controls that do not obstruct delivery
• Front line staff usually know how a process could be improved– The hard part is getting them to tell you
• Middle managers have the hardest time
Redesigning delivery chains around the customer exposes ineffective delivery
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A process model of local government
PrivateContract
3rd Sector
3rd Sector
PrivateContract
Citizen
(internal customers)
Local Authority
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Delivering through networks• Understanding others’ business models• Bringing common values to surface• Communication across all levels• Co-ordination not control• Education as influence
• Become the network hub• Strengthen the network
Both more flexible and more fragile than hierarchies
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Traditional local government:Hierarchies and contracts
CouncilExecutive
Children EnvironmentSocial
Services
PCT
PrivateContractor
3rd SectorContractor
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Emerging local government:Hubs and networks
LA
3rd
Public LAExec
LA
LALA
3rd
3rd
3rd
Private
Private
Private
Public
Public
Public
Publicchildren
elders
economy
safety
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Place based public service pressures• Organisational listening• Neighbourhood flexibility• Strategic scrutiny• Leadership & mobilisation
• Shared service management• Partnership building• Multi agency accountability• Pro-active economic development• Market development
• Performance management• Financial management• Risk management
Place based public service requires new skills locally and new thinking nationally
Closer to citiz
ens
Delivery through
networks
Managing uncertainty
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What next for Total Place?
• Government decisions– in Budget?
• Conservative party consideration– In first 100 days?
• Locally driven proposals– Kent: Bold steps for radical reform
• London Councils’– Manifesto for Londoners
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