Download Back Office services - British Parking Association

ESSENTIAL
STRATEGIES TO
DRIVE EFFICIENCIES
PUBLIC SERVICE
REFORM, PARKING
AND
COST REDUCTION
Lord Geoff Filkin
Parkex 2011
Public Service Reform, Parking and Cost Reduction
The fiscal crisis and the rescue plan
A different view of the state
Transformed supply side
Implications for local government
Re-thinking costs and services in parking
Make or buy – on street services
Make or buy – back office functions
The Fiscal Crisis – its causes
Entered global down-turn with growing fiscal deficit
Ever growing calls for state action and spend over recent
decades
Now state running a deficit of 12% of GDP
Aggregate debt rising and will hit 80% of GDP
Not simply a short-term problem
A bigger crisis - the costs of longer life expectancy
A coalition government with no choice but to address or
markets would punish.
The Rescue Plan
Aim to cut the deficit within 4 years
2/3rds by cuts to service spending, 1/3 by tax rises
Radical reviews of what the state does
Massive four year budget cuts to departments, local
government and police
Reductions in public service pay and pensions
Major welfare cuts – later retirement, fewer and more
conditional hand-outs
The markets and IMF have welcomed the resolve
A Different View of the State
From “Big” to “Small” government
• Reduction in size of central government
• Decision making devolved
• Fewer solutions dictated from the centre
Question state actions and whether necessary and effective
UK is over-centralised, inhibiting individual and community action
Empower individuals and communities
Transparency, not targets or regulation
Radical changes to health, schooling, local government and welfare
Changes to CG’s pay, pensions and redundancy terms
At same time as massive budget cuts!
Transform Supply Side
Devolve power and budgets to users if possible
Or give users choice – of schools, hospitals etc
Promote a much more diverse supply side
End state monopolies
Remove inhibitors to outsourcing – two-tier code
Pay for results or benefits, not inputs
Never seen such a wide and radical agenda for change
The public accept the need for action, but the pain has not yet hit!
Implications for local government
Toughest settlement for decades
A tightening ratchet and a long term challenge
Reduced central demands and controls
But controls on level of council tax rises
Requires a fundamental review of everything we do
And how we do it
Tinkering will not work
Requires strong political and managerial leadership
Re-thinking services and costs
No sacred cows –neither services nor methods
Review what gives value to the public
Parking is unusual as can be cost neutral or better
Re-think what we do, how we do it, how we buy it
Use buying power of public sector
LA’s do many things on a small scale
Economies of scale, scope, specialisation and technology
Fundamental reviews of front, middle and back office
functions
Re-thinking parking service’s costs and services
Not parking alone but congestion, vehicle and street scene
management
At worst a zero-cost service
Maximising compliance – bus lanes
Proportionate enforcement and deployment
Self service – on line or on phone parking charges
Transform through technology – ANPR monitoring
Make or buy - On street services
Many of the biggest and best authorities have outsourced:
•Process efficiency greater
•Better technology and its use
•More productive hours and lower employment costs
If put to market – aim for at least 20% cost reduction
How procure to save most – scale, term etc
County wide service with districts to be cost effective
Combined procurements –even greater savings?
Wider services – an end-to-end parking service?
Back Office services
Back Office services
They can be outsourced
But not the final decision
Who has done so to date – TfL, Westminster, Oldham and others
Next area for major savings in parking
Effects of government changes, e.g. Cabinet Office guidance
Why it might be cheaper – as for on street plus business processing
Scale of savings possible – aim for at least 25% less cost
Outsourcing options:
- On street alone
- Back office
- Both together
- Multiple authorities
Go for biggest savings - not salami slicing
ESSENTIAL
STRATEGIES TO
DRIVE
EFFICIENCIES
THANK YOU