total place: london’s public spending

www.londoncouncils.gov.uk

Total Place:London’s public spending

Urban & Regional Economics

Lent Term Seminars

LSE London

25th January 2010

Dick SorabjiCorporate Director

Policy & Public Affairs


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


Total Places: what & whereTotal Places1. Birmingham

2. Bradford

3. Coventry, Solihull, Warwickshire

4. Croydon

5. Dorset, Poole, Bournemouth

6. Durham

7. Kent

8. Leicester & Leicestershire

9. Lewisham

10. Luton & Central Bedfordshire

11. Manchester city region & Warrington

12. South Tyneside, Gateshead, Sunderland

13. Worcestershire

Policy Themes

• Alcohol & drugs

• Health & social care

• Children

• Crime

• High cost communities

• Young people & employment

Targeting wicked problems in diverse communities


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


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


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


Total State spending in London


London locally managed spending


London public spending 2008/09£millions National NDPBs Local Total %

Defence 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


London spend viewed from WhitehallRank 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


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


Players in one policy area:Economic Affairs 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 1272008/9 figures


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


From efficiency to innovation

Efficiency savings

• More tasks per hour• Bulk purchase savings• ‘Invasive’ control

systems• More ticket machines

• Doing things better

Process improvements

• Eliminate tasks• Different purchases• ‘Automatic’ control

systems• Oyster Card

• Doing better things

Thinking differently delivers more than squeezing harder


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 relationshipbetween central and local government


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


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%


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


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


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


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


Total PlaceIn

context


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


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


A process model of local government

PrivateContract

3rd Sector

3rd Sector

PrivateContract

Citizen

(internal customers)

Local Authority


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


Traditional local government:Hierarchies and contracts

CouncilExecutive

Children EnvironmentSocial

Services

PCT

PrivateContractor

3rd SectorContractor


Emerging local government:Hubs and networks

LA

3rd

Public LAExec

LA

LALA

3rd

3rd

3rd

Private

Private

Private

Public

Public

Public

Publicchildren

elders

economy

safety


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

Closer to citiz

ens

Delivery through

networks

Managing uncertainty


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


End

total place: london’s public spending

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