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The need to improve efficiency drives local innovation

Released  16 May 2007

Innovation rather than incremental improvement is the key for local authorities in meeting growing public expectations and financial pressures, according to a new report by the Audit Commission.

Seeing the Light: Innovation in Local Public Services finds that many councils are innovating successfully, with pressure to improve efficiency being the main driver. Outcomes of successful innovation have included improved performance, increased democratic engagement and better value for money.

But while most councils and fire authorities at all levels of assessed performance are engaged in some form of innovation, there is still scope to yield bigger gains. Evidence from the Commission's corporate assessments suggests that only one-third of single tier and county councils and a quarter of fire authorities are involved in extensive innovation.

The report recommends that authorities identify service areas in most need of innovation, such as those for which aspirations are high and performance is low, and support staff in generating and implementing innovative projects to raise standards. Users should be central to innovations in services, and community planning events can help generate innovative ideas for meeting local needs.

Often the benefits of innovation will greatly outweigh the costs, but risk is an inherent part of innovation. Authorities can minimise the chance of innovation failing by carefully managing those risks. The report highlights examples of local authorities that have improved the value for money of their services, achieved more effective service delivery and built stronger relationships with their communities through innovation.

Woking Borough Council, for example, was at the forefront of local action to address climate change before it was accepted more broadly as a serious concern. In 2002 the Council adopted a wide-ranging climate change strategy including plans to adopt a carbon-neutral approach to future services and activities. Using innovative approaches to funding, technology and partnership working, the Council has established itself as a leader in this field and has reduced CO² emissions from its own property by 82 per cent.

Michael O'Higgins, Chairman of the Audit Commission, said:

'Local authorities are seldom portrayed as hotbeds of innovation, but our report shows that many are innovating to deliver better services within tighter budgets. Innovative authorities realise that greater efficiency is not always about working harder, it's about being smarter. As the pressures grow on councils and their partners to improve performance and deliver even bigger savings, incremental approaches to improvement just won't be able to keep up. Innovation can bridge the widening gap between public expectations and limited resources. 'Our report guides local organisations through the innovation process, from the first spark of an idea to the project being shared as notable practice with their peers. It will help authorities innovate successfully in order to reap the benefits available to them and their communities.'

The Commission has identified four key stages of innovation that authorities should follow. These are: identifying opportunities; embedding creativity; taking well-managed risks; and sharing innovative practice. A set of case studies which demonstrate the successful implementation of these processes across a range of services has been published alongside the report at www.audit-commission.gov.uk to give authorities concrete examples of good innovation.

Notes to editors

  1. Evidence of innovation in fire and rescue authorities was taken from the fire and rescue comprehensive performance assessments published in 2005.
  2. The Audit Commission is an independent body responsible for ensuring that public money is spent economically, efficiently and effectively, to achieve high-quality local services for the public. Our remit covers around 11,000 bodies in England, which between them spend more than £180 billion of public money each year. Our work covers local government, health, housing, community safety and fire and rescue services.
  3. As an independent watchdog, we provide important information on the quality of public services. As a driving force for improvement in those services, we provide practical recommendations and spread best practice. As an independent auditor, we ensure that public services are good value for money and that public money is properly spent.
  4. Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk

For further information please contact: Louise Neilan, Media Relations Manager Tel: 020 7166 2132 Mob: 07766 697 801 Email: l-neilan@audit-commission.gov.uk