Weekly Newsletter - 09.05.2024

UK's £1bn homeless housing bill and rural pharmacy "deserts" crisis looms.

Local Government Updates

Technology

Ealing Council's GenAI trial, using Microsoft Copilot, aimed to explore the future of work in local government. The 4-month trial involved 250 staff and focused on enhancing productivity, collaboration, and wellbeing. Key findings include:

  • Productivity Gains: 86% of staff saved at least 30 minutes daily, with 25% saving over 90 minutes.

  • Indirect Benefits: Improved content access, communication, and potential long-term wellbeing.

  • Challenges: Need for better integration and consistency across tools.

Moving forward, Ealing Council plans to expand the trial, targeting high-impact use cases and enhancing digital literacy. The Centre of Excellence will also explore other emerging technologies to prepare for the future of work. For more details, contact Maria Ellis, Programme Manager.

Public Procurement

The UK government's AI plans could potentially increase procurement opportunities for private businesses, particularly in the technology sector. Despite a steady 20% share of public procurement for SMEs, the central government only allocates 11% of its budget to them. The Tony Blair Institute for Global Change suggests AI integration could save up to £40 billion annually and create fiscal space by reducing benefit fraud and simplifying tax procedures.

Deloitte has secured a £42 million contract to enhance the Gov.uk ID Check mobile app, which verifies user identities for government services. This contract, effective until July 2026, includes developing a new strategic app for the Digital Identity program. The Government Digital Service aims to integrate 145 services with the One Login system by the end of the fiscal year 2024-2025.

Finance & Policy

Local authorities in England spent a record £1 billion on temporary accommodation for homeless households last year, marking a 50% increase from the previous year. This expenditure includes £417 million on hostel and bed & breakfast accommodations, a 63% rise. Polly Neate, chief executive of Shelter, attributes this surge to decades of insufficient social housing construction, escalating rents, and rising evictions.

Key Issues:

  • Record £1 billion spent on temporary accommodation.

  • 50% increase from the previous year.

  • £417 million spent on hostels and B&Bs, a 63% rise.

  • Urgent need for investment in affordable social housing.

Neate emphasises the need for government investment in affordable social homes to address the root causes of homelessness, rather than relying on costly temporary solutions.

Digital Connectivity

The North Wales Economic Ambition Board has approved a plan to develop a low power wide area network (LPWAN) by 2027. This initiative aims to enhance public services through IoT sensors and devices, fostering business innovation. The LPWAN is part of the broader Connected Campuses Project under the North Wales Growth Deal, aligning with the Welsh Government's Digital Strategy.

Mark Pritchard, leader of Wrexham County Borough Council, emphasised the project's role in transforming the region into a digital innovation hub. The benefits of LPWAN have been demonstrated in projects like SMART Gwynedd a Môn, aiding high street regeneration. Ken Skates, Welsh Government's cabinet secretary, highlighted the project's potential to build on existing digital strengths in Conwy, Gwynedd, and Wrexham.

Local Council News

Peter Oakford, responsible for Kent County Council's (KCC) budget, warns that most local authorities could disappear due to funding issues. He suggests that councils might be replaced by a single mayor and a few larger councils if the current funding model persists. KCC needs to find over £87 million in savings by early 2025.

Oakford proposes a Metro mayor and three unitary authorities for Kent and Medway to ensure local government survival. KCC, the largest local authority in the country, has seen significant staffing cuts, from 19,000 to just over 7,000 full-time posts. The council is consulting on various service cuts and recently increased council tax by 4.9%, the maximum allowed without a referendum.

Health Regulation

Prosecutions of health and care providers in England have surged by 700% since the Care Quality Commission (CQC) was established 15 years ago. From 2009-2013, there were 11 cases, which increased to 88 between 2019-2023. Fines also rose dramatically, from £650,973 to over £10.6 million in the same periods.

The Covid-19 pandemic significantly impacted CQC's regulatory actions. Prosecutions increased by 63 during the pandemic years (2020-2021) compared to pre-pandemic years (2018-2019), with fines escalating from £922,115 to £4.9 million. Post-pandemic, prosecutions rose by an additional 22, with fines reaching £5.1 million.

Health & Policy

Nearly 90% of council areas in England have experienced pharmacy closures over the past two years, with rural areas being the most affected. The National Pharmacy Association (NPA) reports that 17 out of the 20 lowest-ranked areas for pharmacies per 100,000 people are rural councils.

Paul Rees, NPA's chief executive, warns that these closures could turn rural areas into "pharmacy deserts," forcing residents to travel long distances for medication. The NPA urges the government to reverse the 40% real-term cuts to community pharmacy budgets over the last decade, which have led to over 1,500 closures and reduced operating hours for many others.