Weekly Newsletter - 22.08.2024

Explore Patrick Vallance's science agenda and Tony Blair's AI vision for government

Local Government Updates

Science Policy

Patrick Vallance, the new UK science minister, aims to prioritise science and technology, emphasising the importance of basic research and its translation into economic success. He acknowledges the financial struggles of universities and the need for a long-term solution to support them.

Vallance is optimistic about AI's potential across various sectors, despite safety concerns. He also highlights the need to simplify and reduce the cost of visas for international scientists. Post-Brexit, he is focused on improving scientific collaboration with the EU, recognizing the challenges of the past seven years. Vallance stresses that while some changes will be immediate, others will take years to materialise.

Technology & Innovation

Tony Blair's vision for AI as a transformative force in government is gaining traction with the new Labour administration. Key ministers, including Health Secretary Wes Streeting and Technology Secretary Peter Kyle, are prioritising AI to enhance public services and drive economic growth. The Tony Blair Institute claims AI could save up to £40 billion annually and automate 40% of public sector tasks.

However, scepticism exists regarding the feasibility and transparency of these ambitious plans. Critics caution against over-reliance on AI, highlighting potential biases and data privacy risks. Despite these concerns, the Labour government remains optimistic, with tech firms eager to capitalise on new public contracts. The future of AI in UK governance promises significant changes, albeit with challenges to address.

Event Announcement

The National Rural Conference 2024, organized by the Rural Services Network (RSN), will be held virtually from 16th to 19th September. This event is crucial for senior officers, members, policymakers, and rural service professionals. The National Association of Local Councils (NALC), a key sponsor, represents 10,000 local councils in England, serving 35 million people and 16 million electors. These councils collectively raise £700 million in precept and invest over £2 billion into their communities.

NALC supports vibrant and effective local councils, with over 100,000 councillors contributing 14 million hours annually. The conference is free for RSN and Rural Services Partnership members. For membership verification or inquiries, contact [email protected].

Government Technology

Governments are increasingly adopting AI to enhance efficiency and public service delivery. A recent webinar highlighted several initiatives:

  • Ministry of Defence (MoD): Steven Hodson discussed AI projects like Typhoon Planned Maintenance Optimisation and Intelligence Search, which have significantly reduced processing times.

  • i.AI: Victoria Bew emphasised AI's role in improving public services, with projects like Caddy being trialled by Citizens Advice.

  • SAP: David Dinsdale showcased AI applications in public services, such as annotated taxation queries.

The Greater London Authority, led by Theo Blackwell, is also leveraging AI for projects like predictive analytics for transport and safer cycling routes. The panel stressed the importance of continuous risk assessment and monitoring to maximise AI's benefits while mitigating risks.

Local Government

The Local Government Association (LGA) warns that 60% of councils will be unable to provide additional local welfare support if the Household Support Fund (HSF) ends in September. The fund, crucial for aiding those struggling with food, bills, and essentials, needs a six-month extension to prevent a support cliff-edge. Over 80% of councils expect increased demand for welfare support this winter.

An LGA survey reveals 94% of councils advocate for the fund's continuation, with 67% predicting a decrease in local welfare funding if HSF is withdrawn. Councils urge the government to extend the fund and transition to a long-term, preventative approach to reduce poverty and hardship. Immediate action is essential to maintain vital services and support vulnerable households through the winter.

Finance News

Lancashire County is considering re-entering the municipal bond market to refinance a £350 million floating-rate note maturing in March 2025. This would mark the first local authority bond deal in the UK in four years. The county aims to secure better rates than those offered by the government's Public Works Loan Board (PWLB).

The move comes amid financial pressures on local authorities due to funding cuts, high inflation, and increased demand for services. Lancashire, which has maintained strong credit ratings (AA- by S&P and A+ by Fitch), plans an investor roadshow to confirm favorable rates. The UK Municipal Bonds Agency will assist in the process, though banks have not yet been hired for the sale.