locality.org.uk 1 Better Services, Stronger Economy

Transcription

1 Better Services, Stronger Economy A Keep it Local guide for councillors 1 Better Services, Stronger Economy

2 Locality believes that we can harness the power of community to create a strong local economy and a fair society through commissioning public services locally. This is one of three guides for councillors, commissioners and community organisations with practical advice on how to keep services with local providers. It applies the successful approach described in 'Powerful Communities, Strong Economies', the final report of Locality's 'Keep it Local for Economic Resilience' action research project, supported by Friends Provident Foundation. 2 Better Services, Stronger Economy A guide for councillors

3 We know that councils are under huge pressure. Budgets are getting ever tighter, all the while demand on services is rising. Increasingly, local authorities have been attempting to square this circle by outsourcing services at scale: bundling up services into big contracts that go to large providers at the lowest price possible. We often hear from councillors how their officers will tell them this is the only way. The rules, set by the EU and national government, mean local authorities hands are tied when it comes to procurement. The drive towards open competition and rigorous cost cutting means outsourcing huge swathes of our public services to big multinational companies or large national charities is presented as an inevitability. This guide is to show councillors a different way is possible: to Keep it Local. At Locality, we believe that by commissioning local community organisations to provide local services, councils can simultaneously create better, more responsive services and build a fairer, more resilient local economy. Instead of ending up with tick box services delivered by providers with no local presence, it invests in local organisations who will deliver with conviction, drive down long term demand, and create local jobs. It means that precious public sector resources stay in the local community and create maximum social value for your area, rather than ending up in the pockets of international shareholders or diverted to the head offices of famous national charities. Locality has previously published a five step guide for how councillors and commissioners can work together to create a better commissioning environment that supports local communities, maximises the value of limited resources and inspires excellence in public service provision. 1 Since then, we have been working with six local authorities Bradford, Bristol, Calderdale, Dorset, Hackney and Shropshire to put these principles into practice and overcome the barriers that legal departments and procurement officers often put in the way. We know that councillors, above all, want to use the resources they have at their disposal to create the best places possible for local residents. This guide shows how you can do it, by Keeping it Local. 1 See 'How to Keep it Local: 5 step guide for councillors and commissioners'. Available at 3

4 Keep it Local for better services Community organisations provide high quality services that will save money in the long-term. 4 Better Services, Stronger Economy A guide for councillors

5 Community organisations are locally rooted and trusted, with strong local relationships - especially with people who face complex needs and whom services traditionally find hard to reach. They are multi-purpose organisations that can respond flexibly and provide services that are closely tailored to individual need. It is precisely these kind of 'personcentred' services that will reduce pressure on services in the long-term and help drive down costs. Indeed, Locality s groundbreaking report Saving Money by Doing the Right Thing showed that the big challenge facing our public services is failure demand : problems which have mounted up over time, having not been properly addressed when they were first reported, with people re-presenting at multiple services for the same problem. Our action research has found that councils recognise this, valuing the reach of their local organisations and the unique role they play in service delivery. Here are some of the things local authority officers told us: We know that our partner community anchor organisations play a wider role in our deprived communities It is the VCS who can be best placed to help us promote social inclusion and community cohesion VCSE organisations are better positioned to meet the needs of those who are sometimes defined as hard to reach They are here for the long term, and will deliver with passion and moral conviction 5

6 Keep it Local for a stronger economy Community organisations play a crucial role in the local economy. 6 Better Services, Stronger Economy A guide for councillors

7 Community organisations act as local economic multipliers. They ensure the wealth they generate is redistributed in their neighbourhoods, by employing local people in good quality jobs, using local supply chains, and providing training opportunities so local people can become economically active. Locality has studied the economic impact of community organisations using a method called Local Multiplier 3 (LM3). This measures how the money an organisation spends impacts on the local area, following a source of income as it works its way through the supply chain. We discovered clear and consistent evidence of a local economic multiplier effect: that every pound invested in community organisations flows around the local area, creating additional economic value, due to the fact our members employ local people and use local suppliers. In Bristol, every 1 generated by Southmead Development Trust creates 2.55; and Windmill Hill City Farm creates We also calculated the enabled contribution that community organisations make to the local economy through their tenant organisations. A study of 10 Locality members by NEF Consulting found they collectively enabled approximately 1,400 jobs and approximately 120m of gross value added to the local economy. Every 1 of income generated by Halifax Opportunities Trust at Jubilee Children s Centre creates 2.43 for the local economy Every 1 of income generated by Bradford Trident creates 2.52 for the local economy. This demonstrates the huge potential that local authority commissioning has to generate additional social value in some of our poorest communities by supporting community organisations to deliver services. 7

8 Our research has identified a clear desire for change among local authorities in how they commission services. This is driven both by an understanding of the benefits of commissioning local community organisations to provide services, a recognition of the advantages to the local economy of doing so, and a pressing need to reshape service delivery to achieve savings. However, we are still a long way off achieving this in practice. Commissioning has become an increasingly frustrating experience for local organisations, and some organisations are walking away and finding other ways to serve their local community. This is ultimately in no one s interest: the local authority ends up with a shallower pool of local providers; money flows out the local economy; local organisations lose out on potential sources of income; local people suffer from poorer services. 8 Better Services, Stronger Economy A guide for councillors

9 Four things councillors can do to Keep it Local 1. Show leadership. Commit to being a Keep it Local Council and make maximising the local impact of your services spend a key part of your council s political identity. With strong leadership from you in place, Keep it Local practice can then flow downwards through the system, be realised in commissioning frameworks, and be properly monitored and scrutinised. 3. Be ambitious about social value. Social value legislation has not been a game changer so far but has potential to go much further. Make the most of the opportunity that social value provides to harness the contribution local organisations make to the local economy. You can do this by using Locality s Keep it Local: Economic Resilience Framework. 2. Join up the system. Our research has identified that commissioning remains fractured and disconnected, in particular the relationship between innovative commissioners and risk averse procurement officers. Councillors need to show leadership and provide political cover for officers to try new approaches, so we can join up the system and embed a consistent place-based approach. 4. Help community organisations show they can step up. We know that local authorities can be sceptical about the capacity of local organisations to take on commissioning opportunities. If you believe in your local providers, support them to tell their stories about the local impact they bring and evidence the extra bang for buck they provide. 9

10 The Keep it Local: Economic Resilience Framework We ve worked in partnership with our six pilot local authorities to co-produce a Keep it Local: Economic Resilience Framework so councils can commission for economic resilience and community organisations can evidence their local economic impact. 2 The framework is intended to build a shared commitment between the council and community to place-based commissioning, that creates a resilient local economy and maximises the local benefit of public sector procurement spend. It maps out seven characteristics that work together in a dynamic fashion to create a local economy that meets our definition of economic resilience: An economic system that adapts to both short-term shocks and long-term change, while supporting the community to thrive. You can use this as a strategic framework to support your council to commission locally to build economic resilience, and help you to be clear about the social value you want to see achieved through service delivery in your area. It can also be used by community organisations as a framework for thinking about their own economic impact and how they can evidence it most effectively. The framework is guided by four key principles which define its context: It is citizen-centric a resilient economy is created by local people, for local people It is dynamic a resilient economy adapts and changes It is place-based a resilient economy maximises the value of local assets It is collaborative a resilient economy depends on strong relationships and sharing of power between sectors 2 Our economic resilience framework is based on previous work conducted for Friends Provident Foundation by NEF, CLES and IPPR North 10 Better Services, Stronger Economy A guide for councillors

11 07 Clean and sustainable environment 06 Active and connected citizens 05 Good quality services Public sector Private sector 01 Citizen-centric Place-based Dynamic Collaborative Positive and productive use of local assets Positive flow of money and resources Social sector Network of diverse, responsible businesses and enterprises Inclusive finance system with stable financial institutions 03 Visit for more information about our framework and to read the full findings from our action research in Powerful Communities, Strong Economies. You can also join our Keep it Local Network to share, learn and be inspired with local councillors and commissioners. 11

12 About Locality Locality supports local community organisations to unlock the power in their community to build a fairer society. Our member network of over 550 community organisations creates the services their community needs most in spaces where everyone belongs. Locality provides specialist advice, peer-learning, resources, and campaigns to create better operating conditions for our members. Locality central office, 33 Corsham Street, London N1 6DR info@ Locality is the trading name of Locality (UK) a company limited by guarantee, registered in England no and a registered charity no Locality March 2018 Unlock the power of community Find out more about the Keep it Local for Economic Resilience project and join the Keep it Local Network at Locality is grateful to the Friends Provident Foundation for supporting this work. Friends Provident Foundation is an independent grantmaking charity working to support greater economic resilience through building knowledge and taking action at the strategic and local levels