ESSENTIAL STRATEGIES TO DRIVE EFFICIENCIES PUBLIC SERVICE REFORM, PARKING AND COST REDUCTION Lord Geoff Filkin Parkex 2011

Public Service Reform, Parking and Cost Reduction The fiscal crisis and the rescue plan A different view of the state Transformed supply side Implications for local government Re-thinking costs and services in parking Make or buy – on street services Make or buy – back office functions

The Fiscal Crisis – its causes Entered global down-turn with growing fiscal deficit Ever growing calls for state action and spend over recent decades Now state running a deficit of 12% of GDP Aggregate debt rising and will hit 80% of GDP Not simply a short-term problem A bigger crisis - the costs of longer life expectancy A coalition government with no choice but to address or markets would punish.

The Rescue Plan Aim to cut the deficit within 4 years 2/3rds by cuts to service spending, 1/3 by tax rises Radical reviews of what the state does Massive four year budget cuts to departments, local government and police Reductions in public service pay and pensions Major welfare cuts – later retirement, fewer and more conditional hand-outs The markets and IMF have welcomed the resolve

A Different View of the State From “Big” to “Small” government Reduction in size of central government Decision making devolved Fewer solutions dictated from the centre Question state actions and whether necessary and effective UK is over-centralised, inhibiting individual and community action Empower individuals and communities Transparency, not targets or regulation Radical changes to health, schooling, local government and welfare Changes to CG’s pay, pensions and redundancy terms At same time as massive budget cuts!

Transform Supply Side Devolve power and budgets to users if possible Or give users choice – of schools, hospitals etc Promote a much more diverse supply side End state monopolies Remove inhibitors to outsourcing – two-tier code Pay for results or benefits, not inputs Never seen such a wide and radical agenda for change The public accept the need for action, but the pain has not yet hit!

Implications for local government Toughest settlement for decades A tightening ratchet and a long term challenge Reduced central demands and controls But controls on level of council tax rises Requires a fundamental review of everything we do And how we do it Tinkering will not work Requires strong political and managerial leadership

Re-thinking services and costs No sacred cows –neither services nor methods Review what gives value to the public Parking is unusual as can be cost neutral or better Re-think what we do, how we do it, how we buy it Use buying power of public sector LA’s do many things on a small scale Economies of scale, scope, specialisation and technology Fundamental reviews of front, middle and back office functions

Re-thinking parking service’s costs and services Not parking alone but congestion, vehicle and street scene management At worst a zero-cost service Maximising compliance – bus lanes Proportionate enforcement and deployment Self service – on line or on phone parking charges Transform through technology – ANPR monitoring

Make or buy - On street services Many of the biggest and best authorities have outsourced: Process efficiency greater Better technology and its use More productive hours and lower employment costs If put to market – aim for at least 20% cost reduction How procure to save most – scale, term etc County wide service with districts to be cost effective Combined procurements –even greater savings? Wider services – an end-to-end parking service? Back Office services

They can be outsourced But not the final decision Who has done so to date – TfL, Westminster, Oldham and others Next area for major savings in parking Effects of government changes, e.g. Cabinet Office guidance Why it might be cheaper – as for on street plus business processing Scale of savings possible – aim for at least 25% less cost Outsourcing options: - On street alone - Back office - Both together - Multiple authorities Go for biggest savings - not salami slicing

ESSENTIAL STRATEGIES TO DRIVE EFFICIENCIES THANK YOU