Procurement, Capital and Shared Assets Workstream Cllr Paul Bettison Andrew Smith OBE Friday 3 rd December

The productivity challenge… Cultural not technical – who can afford sovereignty?

The productivity challenge… Designing for tomorrow today

The productivity challenge… Driving adoption

The productivity challenge… Embracing localism

The productivity challenge… Making a significant impact on costs 96% of spend is in construction, corporate services, social care and waste and in the last two costs are set to double Our solutions need to deliver for each of these markets Working with suppliers to reduce costs We need to help suppliers reduce their costs, simply driving down margins becomes counter productive There is an expanding range of service providers in the private, and voluntary and community sectors - we need to help them reduce their costs too The challenge isn't technical its in our behaviour We haven't been good at collaborating in the past but we have some examples of excellence We can deliver significant quick wins and reshape whole markets Building capacity in local government to make the changes is critical

Workstream plan Short term – Quick Wins Strategy Medium term – Big Wins Strategy and new service models Longer term – Remove barriers to adoption = Optimum Leverage

50% of spend is through third party suppliers External spend for public sector in England is £221bn… Of which £50bn is local government 96% of our external spend is in 4 areas Waste Construction Asset Management Corporate services Social care Big Wins Strategy… Follow the money

Construction and Asset Management Build using a managed framework approach Helping localism through increased leverage Developing long term performance based supplier relationships Using collaborative frameworks as a vehicle for local economic benefit Offering a core framework design for local adaption Offering a Collaborative Education Partnership service model A local government led best practice approach Easy access, low cost and flexible Developing programmes not projects Sharing assets Better use of what you currently have – start simple Shape and improve service outcomes through sharing assets Learn from CLG Capital and Asset Pathfinders Developing new property vehicles and funding mechanisms

Corporate services Outsourcing corporate services Developing new contracts with flexibility and incentives to reduce costs Delivering a framework for shared services with CBI and industry Looking at open source software and shared processes Reducing the costs of commodity procurement An online best deals service to compare prices Development of the Spotlight on Spend service to make spend transparent. Joining up business portals to make contracts and tenders more transparent. Reviewing the best deals in the top spend categories in collaboration with central government Energy Buying Guidance Developing proposals on optimum energy procurement Reviewing local energy production and local government’s role in this

Social Care Reduce unit costs Across the SE, London, WM & EM the Care Funding Calculator continues to offer a method for delivering savings on residential care and supported living – Savings since 2008 to date of £13m Putting this online and extending to children‘s services Reduce purchasing Developing a proof of concept to help authorities to expand their Shared Lives schemes to deliver support to a wider range of people, and reducing spend of up to 60% on traditional high cost services such as residential care and day care Shared approaches to procurement Geographic frameworks to manage the markets for traditional forms of care Regional or sub-regional community equipment services Opening ‘best deals’ offers care providers reducing costs of service to the public sector and self-funders

Waste and Resources Transformation Support Service A service for all councils pursuing early stage and advanced waste partnerships, access to a national waste partnership forum National and regional procurement delivering frameworks representing significant procurement savings; reducing the costs of existing contracts, and; providing access to reduction and recycling incentive schemes Knowledge Transfer Waste Information portal with over 95% of LA’s registered Self Assessment an online service, allowing local authorities to self-assess their service against a blueprint of best practice. 70 authorities already using this.

Accelerating the learning…an example Benefit Learning Local Authorities

Technical Collaboration Leverage (local choice) (aggregation benefits) Product shift – but less risk More adoption of what works Supply chain management Scale Standardisation? Compliance The Future

The Future continued… Adaptive Sharing capacity / skills / people (is sovereignty dead?) Redesign aggregate procure deliver Elected member leadership Is the private sector prepared? Procurement models based on: Joint ventures Asset backed borrowing vehicles Geography or place based Leverage

Questions and answers… We have published a Quick Wins document –We would welcome your feedback We will publish shortly a Big Wins document –We would welcome your suggestions We recognise that to make the programme meaningful we have to implement change –If you want to help take the programme forward please get in touch

Workstream contacts and further info Member lead: Cllr Paul Bettison: Chief Executive lead: Andrew Smith: Managing Director: Andrew Larner Programme Manager: Michael Lee: Visit our website and join the community of practice:

Thank you