RELOCATION
Whitehall relocation an opportunity for wider reform
Stephen Hughes, chief executive of Birmingham City Council, urges the government to fast-track Whitehall relocation in order to cut costs, help address regional economic differences in the UK and remodel the public sector along more efficient lines
T
he government faces tough decisions as it looks to streamline
public services and cut costs. Relocating parts of the civil service may be unpopular in some quarters but it is exactly the sort of step that needs to be taken if we’re to make the public sector more efficient and more equitable in the long term.
As well as delivering reduced property and staff costs, spreading public sector jobs around the country and connecting departments to the communities they serve, moving parts of Whitehall to the regions presents an opportunity to start afresh and remodel it into a more efficient form. Ideas on sharing services, facilities and becoming more customer- focused will become easier to implement as relocation breaks down important barriers and by its nature instigates change.
This change can be modelled so that the impact of public sector cuts is not as severe as many predict. Relocation could be the catalyst for a new approach to public services. An approach where every single task, from a frontline service to a back office function and every sequence of tasks in between, are designed to create as much value as possible for the customer.
By focusing on outcomes and working backwards to create a public sector that delivers them with minimum waste, you quickly realise that an entirely different model to the one we have now is preferable. One where administrative functions aren’t duplicated from department to department. One where ‘legacy tasks’ aren’t
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handed down over time to be carried out more for their own sake rather than for their intrinsic value. And one where functions aren’t focused in London where they are out-of- touch with, and making less of a contribution to, the communities that they serve.
Moving large parts of the public sector out of London gives the government a chance to rebuild it to be cheaper, fairer and more effective. The most compelling case for relocation isn’t lower property and staff costs, the more even distribution of public- sector-generated wealth or even connecting central government with the communities it serves. It’s about the chance to start afresh.
Through Birmingham City Council’s own attempt to start again and boost the efficient running of our council, we have identified £1 billion of savings that can be achieved by 2016 by being leaner and introducing more efficient ways of working.
It’s anything but the stripping down of services to their bare bones. It’s about delivering services that work as well as they can.
Quite simply, services that work cut demand and therefore free up capacity. Already, our programme has reached 56% of the total £1 billion saving and delivered an improved service through a new customer service centre. And individuals have been provided with their own online customer account where they can quickly access council services and track all of their dealings with the council. Other successes include a more
agile workforce that can work from the most appropriate location rather than being tied to one site. At the same time, this has allowed us to better use our property portfolio and sell buildings that are not required. We have also introduced a more cost effective way of purchasing goods and services, enabling the council to manage its suppliers better, while having access to more up-to-date financial information.
From Lyons to Smith to the present day
The 2004 Lyons Review recommended that a substantial number of public sector activities be relocated from London and the south east of England to other parts of the United Kingdom. While some departments moved functions to the regions, substantial relocation failed to take place. In March 2010, a report by Ian Smith also recommended significant civil service
relocation and we are eager that, this time, impetus is not lost.
The case for Birmingham
Through our experience, we understand the challenges the civil service is facing in delivering new working practices. As the largest local authority in the UK, and indeed Europe, the transformation of our services has been tough but through it we have established a well-earned reputation for leadership in the public sector on this issue.
The fact that Birmingham should be a strong contender for civil service relocation programmes based on its
Sep/Oct 10
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