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Councils are under pressure - How can suppliers help?

Having experienced the public sector's challenges first-hand, both from within the system and now as a supplier, I’ve witnessed the mounting pressure on councils to make significant savings amid rising demand on their services. Technology and infrastructure is one place to start. However, suppliers need to step up their support.

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My background

Throughout my career in policing, I collaborated closely with local councils on various initiatives. From multi-agency approaches supporting domestic abuse victims to working with social services for child protection and tackling neighbourhood issues, I’ve seen the vital services councils provide.

IT services are integral to the smooth operation of council services, key to citizen engagement, revenue generation, and information dissemination. However, outdated technology can become a source of inefficiency and increased costs, hindering councils from meeting modern demands effectively.

Financial pressure on councils

In my capacity at Cloud Gateway, I work with several councils and consistently hear about the urgent need to make financial savings. According to a County Councils Network (CCN) survey last year, seven in ten councils are now uncertain about balancing their budget next year.

England’s largest councils report being in a ‘significantly worse’ financial position than before the last Autumn Statement. The CCN survey reveals that local authorities plan more severe cuts, with a projected overspend of almost £650 million this year due to spiralling costs, particularly in children’s social care and home-to-school transport.

Despite these pressures, major political party manifestos have barely mentioned local government funding, creating uncertainty about how funding for councils will change under a Labour Government. The Institute for Fiscal Studies (IFS) indicates that if demand and above-inflation costs continue to grow, “councils could be forced to cut back on some services, even if funding from Central Government is frozen in real terms and council tax is increased at 5% per year.”

Councils could be forced to cut back on some services, even if funding from Central Government is frozen in real terms and council tax is increased at 5% per year.

The Institute for Fiscal Studies / IFS

Do you have a clear picture of your tech landscape?

Ensuring you’re getting the best value from your technology is critical. This not only helps in reducing direct costs but also improves efficiencies, allowing staff to focus on what matters most. An honest review of your existing technology and its implementation is the starting point.

Analyse your core network foundation. Is your technology piecemeal, with different departments operating in silos? Do you have legacy IT systems that are expensive to maintain? Is there shadow IT? Does your technology reduce manual processes, or do inefficiencies like double keying and manual data transfers persist due to a lack of integration?

The challenge to suppliers

Suppliers need to rethink how they support councils during these times of significant financial pressure. How can we assist without adding to the problem? At Cloud Gateway, we offer a free architecture review to help councils understand and optimise their tech landscape without incurring extra costs:

Architecture Review

Conclusion

The financial pressures on councils are stark, with many local authorities planning severe cuts and struggling to balance their budgets. More deprived areas are likely to face an unsustainable funding squeeze unless there is a significant redistribution of central government grants.

With a new Labour government now confirmed, there could be changes in how councils are funded. Labour may prioritise public sector support and address the financial inequities faced by poorer areas. However, until concrete policies are in place, uncertainty remains.

Suppliers have an important role to play in supporting councils through these challenges, particularly those offering technology services. As an industry, it is incumbent on us to help our customers maximise value and efficiency, reduce technical debt - and give councils some breathing room to focus on what matters most, delivering positive citizen outcomes