Weekly Newsletter - 28.06.2024

Unlocking Council Budgets and Tech Innovations for a Brighter Future

Local Government Updates

Local Government Challenges

Local governments face severe challenges, from social care to homelessness, exacerbated by deep cuts in public spending. English councils, particularly, have seen a 55% reduction in central government funding between 2010-11 and 2019-20. Despite a 26% budget increase in the current spending review period, the growing demand for local services has left finances strained. Discretionary services like youth programs and libraries have been significantly impacted. The election campaign lacks clear commitments from major parties on future council funding, leaving voters uninformed about the fate of essential services. Reforming council tax and redistributing resources are crucial, but comprehensive plans are missing. Transparency on budget plans is essential for informed voter decisions and effective local governance.

Budget Strain 

Staffordshire County Council overspent its budget by nearly £4 million in 2023/24, driven primarily by high demand for children's services. The council's total expenditure was £700.4 million, with children's services alone exceeding the budget by £9.7 million due to care placement costs. Education services also saw a £2.3 million overspend, largely from increased spending on transport for pupils with special educational needs and disabilities (SEND). Despite these challenges, the council is managing a balanced budget for the current year and plans to do so for the next five years. Measures to reduce expenditure include monitoring thresholds for children entering care and reviewing SEND transport to increase efficiency. Underspends were recorded in care commissioning, adult social care, and transport.

Election Tech Insights  

The UK election manifestos reveal varied approaches to digital transformation. The Conservatives aim to double digital and AI expertise in the civil service, enhance the NHS App, and invest in digital infrastructure. Labour focuses on improving data sharing with a unique identifier and creating a National Data Library. The Liberal Democrats plan to boost productivity by encouraging digital technology adoption and ensuring NHS IT interoperability. These policies reflect a commitment to leveraging technology for improved public services and efficiency. Additionally, upcoming events and webinars will further explore these themes, featuring insights from government officials and experts. The emphasis on digital innovation underscores the importance of technology in shaping future government services and addressing current challenges.

Tech-Driven Transformation 

The Socitm Presidents Conference showcased how local authorities and NHS bodies are leveraging technology to enhance services. Blackpool's Silicon Sands project aims to create a low-carbon data centre, utilising a transatlantic fibre optic cable and offshore wind farms. North Yorkshire focuses on performance and outcomes, while Oxfordshire adopts a cloud-appropriate strategy, saving significant costs. Coventry explores AI in social work, improving case note writing and decision-making. Sandwell and West Birmingham NHS Trust boasts an efficient IT helpdesk, and Brentwood and Rochford councils save £1 million by sharing a domain. These initiatives reflect the public sector's commitment to innovation and efficiency. 

Digital Transformation 

The Local Government Association (LGA) has proposed the establishment of a Local Government Centre for Digital Technology to foster innovation and support local authorities. This initiative, outlined in a recent white paper, aims to reset the relationship between central and local government, promoting inclusive economic growth and tailored technological solutions. The centre would collaborate with councils to share knowledge, co-create solutions, and develop standards, while also representing local government in national policy discussions. Governance would be overseen by a board, with funding from various grants and service fees. The proposal is part of broader recommendations to enhance efficiency, reduce bureaucratic reporting, and improve public sector spending transparency.

AI in Governance  

Integrating AI into the public sector presents both opportunities and challenges, as highlighted by Christina Montgomery, IBM's Chief Privacy and Trust Officer, at the DX Summit 2023. Key issues include the need for trust, robust governance, and ethical considerations. AI can enhance public services by improving information retrieval and data integration, but its success depends on transparency and responsible implementation. Practical applications, such as AI-powered virtual assistants, demonstrate AI's potential to increase productivity. However, challenges like AI bias, privacy concerns, and fiscal constraints must be addressed. Collaboration between government and private sector experts is crucial for creating effective regulations and ensuring AI technologies are used responsibly, benefiting society while maintaining public trust.