Force local authorities to use shared services, says Deloitte

Local government should be obligated to roll out shared services for back-office functions to save money, a report from Deloitte has recommended.

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Local government should be obligated to roll out shared services for back-office functions to save money, a report from Deloitte has recommended.

In the Shared service delivery in local government report Deloitte said, "Given the threat to existing levels of public funding, there is now a strong case for making the adoption of shared services for certain back-office functions mandatory.

However, Deloitte noted that local authorities value their independence, which makes it hard to roll out shared services. "The urge to protect local authority autonomy is strong. Reallocating staff outside a political boundary is hard to agree."

Deloitte recommended local authorities consider using shared services for transactional processing such as revenue and benefits, plus professional support services such as legal and human resources.

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