How public services can survive the recession
John Ransford
Chief executive, Local Government Association
My working life in local government goes back to before the recession caused by the oil crisis in 1973, and, in my opinion, this is by far the deepest and most challenging set of circumstances since those dark days. My view is formed not only by the economic indicators, whether caused globally or at home, but also by the way people feel - fuelled by graphic images from 24-hour immediate news access. Hostility to the public sector - pay, conditions and pensions - is just one aspect of this. We face an enormous challenge with a workforce of people who have grown up in times of economic plenty and known little else in their private and working lives. Therefore, we must harness their enthusiasm and commitment to show they can really do better for people, however low they are held in public esteem. Public services, and local councils in particular, are vital for building a better tomorrow. We must harness all the resources of communities to create sustained initiatives now, as the start of an upturn would be too late.
One lasting positive legacy from the 1970s was the training of second-career people over the age of 30 as social workers. They harnessed enthusiasm and dedication with real life experience. It gave them sustainable and rewarding jobs, too, with the ability to really communicate the benefits of life chances. At a time when children deserve better support and protection, and vulnerable older people deserve care with dignity, there is no better time to invest in this vital human capital. We did it once - we can do it again.
Roy Taylor
Director of community services, Royal borough of Kingston upon Thames
Having been around as a social worker since the creation of social services departments in 1971, I have some useful experience of planning, delivering and commissioning social services at times of recession. In a director's role at such a time, several things are important: keep the needs and experiences of those who use or receive services at the forefront of your mind; and, because you are likely to have to reduce or reshape services, aim to consider options with service user groups, as well as staff, partner agencies and councillors, as sometimes better solutions can emerge in tough times. Value your staff and set an example by showing this - most managers and staff will recognise the severity of the recession and will want to help, especially as many will also be rooted in local communities.
Even in a severe recession, some investment will be needed to produce services able to weather the storm - for example, training staff to work in new ways and investing in major benefit take-up campaigns to bring in resources to help individuals and families. And encourage your chief executive, management team and council to exercise a community leadership role. Also, a serious recession will bring to the fore some incredibly able local people who may have been made redundant or have been unable to find work, despite having good abilities and qualifications. Internships, apprenticeships and volunteering opportunities can all be useful.
Ken Jarrold
Director, Dearden Consulting
From my experience as a chief executive in the NHS for 20 years in the north-east of England before working at the national level, I know it's going to be extremely tough. But the NHS is much better placed to face cuts this time round because of the very generous allocations it has received in recent years, so it is starting from a very high base. Also, the foundation trust financial model is very robust. However, since 70% of the NHS budget is staffing costs, there is only one thing that can be done: increase productivity. The key to getting through this recession is to use people better. Managers will need to look at their models of care, their staff grades and mix, and the way they work. I'm not saying the NHS is inefficient, but there is scope to increase productivity. And an efficiently run ward and department will help patient care. Efficiency and productivity are not the enemy.
NHS managers must also remember three key principles: they are servants, not masters; they need to keep patient safety and care at the centre of what they do; and they need to look after frontline staff. If they do this in these tough times ahead, they won't go far wrong.
Sir Michael Bichard
Director, Institute for Government
The challenges faced currently by public services are unprecedented because the worst recession in our lifetime coincides with uniquely complex social and environmental challenges - think climate change, chronic disease and old age. So the traditional responses to a recession won't do. We are facing a period during which efficiency, productivity, rigorous prioritisation and effective budget control will be high on the agenda, but we need more than that. We need to build innovation to enable us to reshape policy and services to deliver better quality at less cost. We need to be more radical in the way we join up departments, authorities, agencies and sectors to offer services that are built around client needs; we need to devolve power to devise new solutions closer to the frontline; and we need to be better at influencing citizens to change their lifestyles and so reduce the pressure on public services.
The challenge for leaders - politicians and officials - is huge because much of this is about changing the traditional risk-averse, silo-based, service-centred culture of our public services at a time when resources will inevitably be reduced. If the only message we send is that we are entering a period of cuts and more cuts, people's motivation will suffer. Difficult times have always delivered new solutions, and these times should be no different.
Sir Howard Bernstein
Chief executive, Manchester city council
In the recession in the early 1990s, Manchester - birthplace of the industrial revolution - suffered disproportionately. The need to further diversify our economy was underlined. Today, the city is not manufacturing-led and, as a result, is more able and willing to meet the challenges of the 21st century. However, our focus remains the same. We will continue to invest significantly in expanding our knowledge, healthcare and science-based activities; to build upon the growth and development of our media-related sector; and to develop even further our proposition for commercial and professional services. All these help us to attract and diversify our industries and shape our city to match future growth sectors. People are also at the heart of our strategy for skills development, education and high-quality housing, which will all remain priorities. This will strengthen our resilience even further to economic change and ensure that Manchester attracts, retains and grows the people who want to live and work in our city.