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Is Total Place Doing Enough For The Economy?

Date: Tuesday 29/09/09

IESE comment on Guy Clifton’s Times Online article on Total Place

An article in The Times Online on 25th September 2009 sought to argue that public spending needs to be recognised as a major influence on the local economy, a fact long recognised and acted upon by Improvement and Efficiency South East.

 

Guy Clifton’s piece on Total Place, the pilot scheme that will map public spending at a local level to find efficiencies, suggests that it will for the first time, “provide a realistic view of what “public sector plc” really means for those local authority areas”.

 

However, Clifton’s arguments lead one to conclude that despite a lack of obligation, Total Place initiatives must be understood not only in terms of benefits to the local tax payers or immediate savings, but also in terms of its wider impact on the labour market, local suppliers, and more long-term strategies to invert the recessional track.

 

In the favour of local government, it is the only part of the public sector that has analysed how and where it spends its money. Some government departments have to an extent but local government is the only place that has looked at its spending across the board.

 

Over half of local government spend is through businesses, voluntary and community organisations. The average spend with SMEs by local government is over 60%.

 

IESE have developed a crucial understanding of where money is spent locally and with SMEs, and therefore are able to procure in a way which will support the local economy. For instance, IESE construction projects are grouped by size to ensure that smaller companies get access to vital spend.

 

In addition, suppliers are offered training opportunities and support, all tenders and contracts are open through the South East Business Portal, and a continuous programme of work with the business community to facilitate their working with local government is underway.

 

Further to this IESE has contributed a significant portion of funds to the Gateway element of the Kent Total Place Pilot and are encouraging regional roll out. There are also a number of other projects that whilst are not official Total Place pilots are contributing to the approach.

 

These include a working relationship with OGC to build a picture of total public sector expenditure by category and the integration of the back office between County and District, District and District, and District and Parish. Furthermore, reviews are being conducted, service by service, to improve performance starting with the areas of greatest expenditure.

 

South East Total Place pilots and initiatives of a similar vein are working hard to tackle the central generational issue in local government of doing more with less. In line with Clifton’s argument, however, they are also working with the private sector, not only in contractual terms but in the manner of a relationship in which local government aims to better understand the needs of the economy. Through this understanding IESE, with local authorities, are working to tackle public service problems with economically holistic solutions.