www.londoncouncils.gov.uk
Total Place:
London’s public spending
Urban & Regional Economics
Lent Term Seminars
LSE London
25th January 2010
Dick Sorabji
Corporate 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 & where
Total Places
Policy Themes
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
•
•
•
•
•
•
Birmingham
Bradford
Coventry, Solihull, Warwickshire
Croydon
Dorset, Poole, Bournemouth
Durham
Kent
Leicester & Leicestershire
Lewisham
Luton & Central Bedfordshire
Manchester city region &
Warrington
12. South Tyneside, Gateshead,
Sunderland
13. Worcestershire
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
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
London locally managed spending
www.londoncouncils.gov.uk
London public spending 2008/09
£millions
National
NDPBs
Local
Total
%
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
Defence
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London spend viewed from Whitehall
Rank
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
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
Players in one policy area:
Economic Affairs
2008/9 figures
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
127
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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
www.londoncouncils.gov.uk
From efficiency to innovation
Efficiency savings
Process improvements
• More tasks per hour
• Bulk purchase savings
• ‘Invasive’ control
systems
• More ticket machines
• Eliminate tasks
• Different purchases
• ‘Automatic’ control
systems
• Oyster Card
• Doing things better
• Doing better things
Thinking differently delivers more than squeezing harder
www.londoncouncils.gov.uk
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 relationship
between central and local government
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
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%
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
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 Place
In
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
www.londoncouncils.gov.uk
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
Local Authority
Private
Contract
3rd Sector
Private
Contract
Citizen
3rd Sector
(internal customers)
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
Traditional local government:
Hierarchies and contracts
Council
Executive
Children
Environment
Private
Contractor
Social
Services
3rd Sector
Contractor
PCT
www.londoncouncils.gov.uk
Emerging local government:
Hubs and networks
Public
3rd
Private
children
Public
elders
LA
Public
LA
3rd
LA
Exec
3rd
LA
LA
Public
safety
Private
Public
economy
3rd
Private
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
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
www.londoncouncils.gov.uk
End