Devolution and LGR will present many challenges, not least central government’s expectation that huge cost savings will result. The merger of councils to form large unitary authorities, and the subsequent integration of services, will present opportunities for economies of scale and higher productivity; but this raises the question of delivery models.
With a government seemingly committed to insourcing, and the introduction of the Public Interest Test, the new councils will have to consider whether traditional outsourcing is a realistic option. In the case of key frontline services such as waste collection, combining several operations - which may be using different delivery models with different end dates - into a single entity may offer savings, but it will be extremely difficult to procure; it will also require a high degree of flexibility and political sensitivity. If insourcing is the answer, the choice must then be made between DLO and LATCo; or an alternative such as partnering with an existing public sector trading company.
The choice of delivery model will be the key to success, and could provide the opportunity to transform and improve services: this session will consider the various options and the best way to implement what is the most significant change in a generation.