The sunny uplands are ahead

WORKING in local transport has not been a laugh-a-minute the last couple of years.

There has been huge uncertainty over funding, firstly three years ago when PFI deals were thrown into disarray because of the credit crunch. Then there was the long period when local authorities were bracing themselves for severe reductions in central Government grant, and the subsequent fallout when the terrible figures were finally issued.

Two reports just out give reason for hope. Firstly, the New Local Government Network highlights the need for a more localist, resilient method for funding capital infrastructure. Relying on hand-outs from Whitehall is a bizarre way of paying for vital transport links, because whenever there is an economic downturn, the tap is turned off. This means that the funding stops at the very moment when there is a need for action to upgrade transport links necessary to get the economy growing again.

A taskforce to find new, affordable ways for councils to take on responsible borrowing for essential infrastructure is welcome and long overdue.

Secondly, the Audit Commission's review of the efficiency of highways maintenance spending is right to highlight that too much of the money that should be used to make our roads fit for bus users, motorists and cyclists is needlessly thrown away because local authorities are not comparing prices for work. And by not jointly purchasing goods that contractors are in any event supplying to a number of authorities across the country, councils are ensuring that the benefits of bulk purchasing are only being enjoyed by contractors.

If the squeeze in public spending leads to a more sustainable way of funding local transport, and to councils getting much better value out of available funding, then some benefit will have come out of it.

The time to kick radical changes into the long grass?

Many eyes were on Suffolk County Council, as it announced plans last autumn to withdraw from either directly providing services or even managing them.

This was going further than traditional and tried-and-tested outsourcings of services such as highways, in which councils still invest lots of money in big teams of people to manage the activities of their contractors. The council would 'divest' services altogether, seeking other bodies to take on this role instead - be it private companies, social enterprises, or parish councils.

The new Conservative leader in Suffolk's decision to order "a period of reflection" has signalled that such far-reaching changes might be politically unpalatable, whatever the hue of the administration.

Other authorities, such as West Sussex County Council, have not been ashamed to say that “there just wasn’t the need to change things too radically" as they re-let contracts that, while building on experience, essentially do not change the role of the council.

It is true that history is littered with examples of change that was subsequently regretted - with the full-blown outsourcing of highways services by Somerset County Council in the 90s just one instance of this.

But while change must be well thought-through, and there are risks in any fundamental change, what about the dangers of not challenging the status quo of how things are done? There is more than one way to 'divest' services, with many authorities in northern England settling on joint ventures, but others, such as Cheshire East, exploring a move to a more strategic 'thin client'.

There is also the option of sharing front-line service delivery. All options must be looked at and considered, to find new ways of making the available money go further and also maintaining or even improving service delivery. http://www.efficiencynetwork.co.uk/