Council make more than 5.5m in efficiency savings

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Still long way from covering the 173m pension fund deficit

Figures released this week show that, by streamlining internal processes, Hammersmith & Fulham Council will make more than £5.5million worth of efficiency savings in 2005/06.

Council leader Cllr Stephen Burke said: "Money saved by greater efficiency helps us deliver what matters most to residents - improved services and lower council tax."

But Director of finance, Jane West, told the press last year that "efficiency savings" would be used to cover the £173m pension fund deficit after losing on equities during the three-year bear market.

£420,000 will be saved in children's services by preparing older children for leaving care by placing them in semi-independent hostels and by improving foster care arrangements. In corporate services reducing overheads in areas such as finance, IT, office accommodation and administration will save £1.8million. £311,000 will be saved in environmental services following a restructure and savings in the administration costs of the parking service.

Council leader Cllr Stephen Burke said, "Everyone wins when the same or even better services are delivered at a reduced cost. This is not about making cuts; it is £5.5million worth of good news for the borough's taxpayers. We have consistently invested in frontline services while our tax burden compared to other boroughs has plummeted in recent years. Money saved by greater efficiency helps us deliver what matters most to residents - improved services and lower council tax."

Stakeholders' expectations generally increase at a rate greater than the increase in resources. Budget holders are therefore generally expected to do more with less. The council is continuing to work hard to make this a reality.

Efficiency gains can be made in a number of ways for example by providing customers with self-service access to information including online payments and application forms; Sharing information electronically will reduce duplication of work, postage costs and retrieval time; Purchasing supplies online will allow the council to negotiate bulk buy discounts. The council is driving a number of these iniatives through the Customer First programme.

Cllr Burke continues, "By investing in new ways of working and delivering services we are producing long-term efficiency gains. These gains will then be released to front line services as part of our Smarter Borough and Safer Communities programmes."

The council's drive to improve efficiency is part of a national target set following the Gershon review, which was published in July 2004. Every local authority is now expected to achieve 2.5% per annum efficiency gains compared to their 2004/05 baselines.

Local authorities are required to submit their expected efficiency savings for the coming financial year, known as the forward look, and to submit their actual efficiency gains for the past financial year, which is known as the backward look. In 2004/05 the London Borough of Hammersmith & Fulham made £1.2million in efficiency savings.

 

July 16, 2005