Member Article

Think you can run public services better?

How many of us haven’t been part of some conversation where the delivery of local service has cropped up? The arguments usually go along the lines of I’m fed up with how the Council is delivering this or that service and I could do a better job.

Hidden away in the Localism Act from 2011 were the little referenced Right To Challenge and Right To Bid powers. Broadly this said that the delivery of services by organisations like Councils could be challenged by the community. From April this year this will also include the delivery of health services locally.

In the North East there have been few to no challenges across the 12 councils and even fewer who probably know that they can challenge. There are some provisions within the Act which groups have to comply with including demonstrating sustainable finances and a track record in delivery. This will come as little surprise to any business that has tendered for public contracts where many of the same considerations are assessed.

Inspiring A New Delivery

Councils haven’t been brilliant at highlighting these powers which is totally understandable. However, as the budgets of councils and others continue to be cut we need to look at a new way of delivering services. We’re not suggesting that this equates to a privatisation of service delivery but rather that small businesses and social enterprises are able to demonstrate a better delivery method.

There are other options that are being considered including shifting to Social Impact Bonds or bringing in large businesses that can deliver financial savings. However we think by using small businesses and social enterprises the delivery of services can create true social value whilst delivering savings.

How To Achieve This

We can start by Councils in the North East embracing innovation in service delivery by seeking to use the powers granted in the Localism Act more effectively. This includes highlighting the services which can be challenged, using a common timeframe to allow challenges to be made (rather than having different times like Councils do now) and being more accommodating to challenges.

We also need to see more communities seek to shape their own destiny by challenging the delivery of services and not being afraid to fail. Within the changes to European procurement rules there are some safeguards to delivery particularly in the case of mutual service delivery.

Underneath all this we need to see more being done to embrace the changes in the Localism Act and flagging up the potential.

Of course there are some barriers to this delivery including the dreaded TUPE regulations which scare many off even looking at delivering services. However, where we can demonstrate that this is a true barrier and not just a perceived barrier we can lobby to have the rules amended.

By working together small businesses, social enterprises and the wider community can help shape service delivery that is relevant to their local areas.

Would you be interested in doing this or getting more involved in this? If yes get in touch with me at simon.hanson@fsb.org.uk

This was posted in Bdaily's Members' News section by Federation of Small Businesses .