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Local Government

Some of the most comprehensive involvement of the private sector in public service delivery has taken place in local government, where companies are involved across the full spectrum of services, from back office business processes to support services, to frontline education reforms across an entire local education authority. 

Historically, local government is also the arena where the controversial policy of lowest cost contracting under compulsory competitive tendering (CCT), was introduced in the 1980s. A wealth of literature exists that analyses and debates CCT. At the same time, some useful analysis begins to emerge from the CCT period forward, in areas such as cost and quality comparison under different service providers, policies and contracting models.

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The Bottom Line: A vision for local government (PDF)
Localis/KPMG, 2009

This report examines how local government can successfully meet the challenges of financial restraint and public demand for change. In particular it examines productivity, efficiency and the mixed economy; accountability and performance management; the local economy; cross-boundary working; and financial innovation.

UK


Capital Contingencies: Local capital finance in an era of high public debt (Web Page)
Symons, Tom and Leslie, Chris, 2009
New Local Government Network
This report outlines how local councils could raise infrastructure investment if, amidst a sever public sector downturn, UK central government reduces support for typical capital expenditure.
ISBN: 978 1 903 447 84 0
UK


Improving Strategic Commissioning of Public Services (PDF)
Local Government Association and CBI, 2008

A report which argues that a more citizen-centric and joined-up approach to commissioning based on trust between the client and supplier is required to promote sustainable improvement in local services.

UK


Making and Managing Markets: Contestability, Competition and Improvement in Local Government (PDF)
Grace, Clive; Fletcher, Keith; Martin, Steve and Bottril, Ian, 2007
Audit Commission and Centre for Local and Regional Government, Cardiff University
A research report based on a review of theory and a number of case studies, which informed the Audit Commission's 'Healthy Competition' report, below. It suggests that in mature public service markets more sophisticated forms of market mechansim must be employed to maintain service improvements. 

UK


Healthy Competition: How Councils Can Use Competition and Contestability to Improve Services (PDF)
Audit Commission, 2007

This report suggests that competition and contestability can be used to generate benefits for taxpayers and service users although councils must be pragmatic in using these market mechanisms and the right expertise in procurement and contract management are required coupled with the accurate information on delivery costs, management costs and service performance. 

UK


Transforming Local Services: Working Together to Deliver Local Government Place-Shaping (PDF)
CBI, 2007

A briefing on how partnership working between business and local government is the key to delivering the place-shaping agenda and how this might be achieved through the creation of a national forum to promote dialogue between the commissioners and suppliers of services. 
ISBN 978 0 085302 663 3
UK


Place Shaping: A Shared Ambition for the Future of Local Government (Web Page)
Lyons Inquiry into Local Government: Final Report, 2007
The Stationery Office
The final report submitted by Michael Lyons into Local Government whose remit was expanded to consider the strategic role of local government, devolution, decentralisation and how pressures on local authorities can be better managed as well as options for local taxation.
ISBN 978-0-11-989855-2
UK


Devolution and Divergence: Comparing English and Welsh Approaches to Citizen-Centred Public Service Delivery (PDF)
Brand, Anthony, 2007
New Local Government Network (NLGN)
A comparison of public service delivery in Welsh and English local government following devolution which contrasts the Welsh community approach which promotes citizen voice, compared with the English competitive approach which focuses on efficiency and choice.

UK


Pacing Lyons (Web Page)
New Local Government Network, 2006

This report is written in response to the development of the Lyons Inquiry on local government.  In four episodes, the report examines local political accountability, the challenges to the local political state, strategic leadership and funding reform.  

UK


Developing the Local Government Services Market to Support a Long-Term Strategy for Local Government (PDF)
Department for Communities and Local Government and PricewaterhouseCoopers LLP, 2006
The Stationery Office

A companion report to DCLG's White Paper, Strong and Prosperous Communities, which considers what affects competition within local government service markets and how they can be made more effective to achieve strategic objectives.  



UK


A Guide to Contract Management for PFI and PPP Projects (PDF)
4Ps, 2007

A guide for local authorities, their partners and stakeholders which identifies key aspects of putting together a good contract management team and building a successful long term relationship with the service provider.

UK


Strong and Prosperous Communities: The Local Government White Paper (Vol.1) (PDF)
Department for Communities and Local Government, 2006
The Stationery Office
A White Paper which puts forward support for more responsive services through the greater participation of communities, greater accountability through a new performance framework and more efficient services through the use of fair and open competition.
CM6939-I
UK


Strong and Prosperous Communities: The Local Government White Paper (Vol.2) (PDF)
Department for Communities and Local Government, 2006
The Stationery Office
The second part of the White Paper which shows how its proposals will apply to local services and cross-cutting issues.
CM6939-II
UK


Review of Operational PFI and PPP Projects (PDF)
4Ps, 2005

A review of local authority PFI and PPP programmes as part of an assessment on their ability to deliver public services.

UK


Making London Work Better (PDF)
Commission on London Governance, 2005

A report on the efficiency, accountability and funding of public services in London.

UK


Delivering for Local Government: The Impact of Public-Private Partnerships (PDF)
Confederation of British Industry (CBI), 2004

A report which shows how the private sector plays a role in improving local government service delivery.

UK


Corporate Governance: Improvement and Trust in Local Public Services (PDF)
Audit Commission, 2003

This report seeks to investigate the relationship between the quality of corporate governance arrangements in public sector organisations and the quality of the services that they provide. The study illustrates some of the main strengths in existing arrangments and identifies some areas that are in need of attention.
ISBN 1 86240 462 3
UK


Starting to Modernise: Managing Strategic Service Delivery Partnerships - From Governance to Delivery
Allen, Enid, 2002
New Local Government Network
A report that examines the innovative strategic service delivery partnerships between the public, private and voluntary sector.
ISBN 1 9034 472 0 8 9
UK


Starting to Modernise: Strategic Partnering for Local Service Delivery -A Pactical Guide
Filkin, Geoffrey; Allen, Enid and Williams, John, 2002
New Local Government Network
A report which followed a research and development programme to help UK councils look at new ways to improving local services.
ISBN 1 9034 472 0 8 9
UK


A Picture of Performance: Early Lessons from Comprehensive Performance Assessment (PDF)
Audit Commission, 2002

A report which surveys the impact of the Comprehensive Performance Assessment (CPA) on local government.

UK


The Next Phase: New Localism, Refashioning the Centre-Local Relationship
Corry, Dan and Stoker, Gerry Prof., 2002
New Local Government Network
A paper examining the need for establishing a new culture of local and regional democracy to allow recognition of weaknesses of authority-based systems of control.

UK


Changing Gear: Best Value Annual Statement 2001 (PDF)
Audit Commission , 2001

A report which examines the implementation of  Best Value in the 410 councils in England and Wales.
ISBN 1 86240 307 4
UK


Strong Local Leadership: Quality Public Services (PDF)
Office of the Deputy Prime Minister, 2001
The Stationery Office
A white paper which sets out a vision for local government to deliver high quality public services to local people.
ISBN 0 10 153272 5
UK


Towards a New Localism: A Discussion Paper (Web Page)
Filkin, Geoffrey; Stoker, Prof. Gerry; Wilkinson, Cllr Greg and Williams, John, 2000
New Local Government Network
A report exploring a new role for local government and the delivery of local services in England.
ISBN: 1 903447 02 X
UK


Starting to Modernise: Achieving Best Value (PDF)
Filkin, Geoffrey, 1999
New Local Government Network
A report into how Local Authorities  can improve their services by applying methodology bsed on inteligent strategic procurement an applying the Best Value policy. 
ISBN 0 9534 903 5 1
UK


The Local Right: Enabling Not Providing
Ridley, Nicholas, 1988
Centre for Policy Studies
A paper by the then Conservative Environment Secretary published shortly before the start of the first round of CCT which discusses the scope and role of local government and how services can be improved through strengthening accountability and extending competition.
ISBN 1 870265 25 4
UK


Compulsory Competitive Tendering (CCT)

 List of Resources:

Contracting Out of Local Government Services in the UK: A Case Study in Transaction Costs
Kavanagh, Ian and Parker, David, 2000
Research Paper no.9, Aston Business School, Aston University
A study on the externalisation of the London Borough of Ealing's Technical Services Group for engineering, environmental and property services (highways and grounds maintenance, refuse collection, street cleansing, architecture and design services) in 1994-99
ISBN 1 85449 394 9
UK


Competitive tendering and Best Value in Local Government
Boyne, George; Gould-Williams, Julian; Law, Jennifer and Walker, Richard, 1999
Public Money and Management, pp.23-29
A paper on the transition from CCT to Best Value in local government.

UK


Accounting and Competitive Tendering in UK Local Government: An Institutionalist Interpretation of the New Public Management
Seal, Willie, 1999
Financial Accountability & Management, 15(3) & (4), pp.309-327
A study of the impact of CCT  based on a case study of a northern metropolitan authority.

UK


From CCT to Best Value: Some Evidence and Observations
Wilson, John, 1999
'Managing Local Services: From CCT to Best Value'; Boyne George (ed); Frank Cass; pp.38-52
A survey of the attitudes of 296 accountants employed by 17 local authoritites in the north west of England on the implementation and impact of CCT .

UK


The Dynamics of Public Service Contracting: The British Experience
Choi, Young-Chool, 1999
Bristol: The Policy Press
A study of the inputs, outputs and outcomes of Compulsory Competitive Tendering as well as its longer-term impact.
ISBN 1-86134-139-3
UK


Modern Local Government: In Touch with the People (PDF)
Department of the Environment, Transport and the Regions, 1998
The Stationery Office
A white paper which sets out a strategy for the reform and modernisation of local government in England.
ISBN 010 140 1426
UK


Lambeth Case Study: A Guide to Joint Venture Procurement under the EU negotiated Procedure
Public Private Partnerships Programme (4Ps), 1998

A case study which provides guidance to those authorities who are considering using joint venture arrangements, in connection with the Private Finance Initiative.
ISBN 1 84049 069 1
UK


Competitive Tendering in Local Government: A Review of Theory and Evidence
Boyne, George, 1998
Public Administration, Vol. 76, No. 4 (Winter 1998), pp. 695-712
This paper reviews the theory regarding contracting and competition - this stems from traditional public choice theory and extensions of this model, and imply the need for the impact to be established empirically. There follows a literature review examining the impact of competition on the cost and quality of local government services.

UK


Service Delivery and Competition Information Service - Survey Report No.16
Local Government Management Board, 1998

A survey which examined the state of the CCT market at the time of writing, with details on building cleaning, refuse collection, other cleaning, vehicle maintenance, catering, ground maintenance, sport and leisure management, professional and IT services.

UK


CCT and Local Authority Blue Collar Services [Link to Executive Summary] (Web Page)
Austin Mayhead & Co. Ltd, 1997
Department of the Environment
A report prepared for the UK Government which examined the impact of the second round of Compulsory Competitive Tendering, from 1993 to 1996, which was applied to building cleaning, refuse collection, catering, school/welfare catering, grounds maintenance, street cleaning, vehicle maintenance and leisure management.  This report followed on from Walsh (1991) and Walsh and Davis (1993), below. It looked at financial, quality and staffing effects and the development of competitive tendering.  
ISBN 0 85112 0335
UK


Trust-Based Relationships in Local Government Contracting
Davis, Howard and Walker, Bruce , 1997
Public Money & Management, pp.47-54
A theoretical article on the nature of trust under a CCT environment. The authors conclude that full relational contracting is not a feature of CCT legislation and argue that it might even be an undesirable characteristic due to government policy objectives. However, they state that for contracts to effectively become an efficient way of managing public services more extensive trust based relationships must be fostered.

UK


Hybrid Organization, Contractual Governance, and Compulsory Competitive Tendering in the Provision of Local Authority Services
and Vincent-Jones, Peter, 1997
Deakin, Simon; Michie, Jonathan (eds), 'Contracts, Co-operation, and Competition', Oxford University Press, pp.143-174
An assessment of the contractual processes involved in compulsory competitive tendering and the future role of contract if the element of compulsion were relaxed.

UK


CCT: The Private Sector View [Summary] (Web Page)
British Market Research Bureau International Ltd (BMRB), 1995

A survey of companies on their experience of bidding for and operating contracts under CCT.

UK


Renewal or Rigor Mortis? Union Responses to Contracting in Local Government
Colling, Trevor, 1995
Industrial Relations Journal, 26(2), pp.134-145
A report on the impact of competition and contracting on unions during the period of Compulsory Competitive Tendering in UK local government.

UK


Compulsory Competitive Tendering in Northern Ireland Local Government: The End of Round One
Knox, Colin and Young, William, 1995
Local Government Studies, 21(4), pp.591-606
A study on the roll-out of Compulsory Competitive Tendering (CCT) to Northern Ireland for refuse collection and street cleaning in 1994-95.

UK


Competitive Tendering in UK Health and Local Authorities: What Happens to the Quality of Services?
McMaster, Robert, 1995
Scottish Journal of Political Economy, 42, 4, pp.409-427
A study which tested the impact of compulsory competitive tendering on service quality in 21 UK health and local authorities between 1989-90.

UK


Why Compulsory Competitive Tendering for Local Government Services is not as Good as Privatisation? (PDF)
Frederick, Danny, 1994
Libertarian Alliance
This article argues that despite the benefits of compulsory competitive tendering (CCT), there are certain negative aspects to it.  It asserts that the biggest problem with CCT is that the values that should be produced by the services are defined by local authorities rather than the taxpayer.  This difficultly of CCT, the author argues can be remedied through privatisation.  
ISBN 1-85637-184-0
UK


Guidance on the Assessment of Quality in the Application of CCT to White Collar and Professional Services
LGMB, AMA, ADC, ACC, COSLA, 1994

Guidance prepared by local authority associations in conjunction with the Joint Professions Working Party, the Institute of Housing and the Institute of Personnel Management as a companion to government advice on avoidance of anti-competitive behaviour.

UK


Competition and Service: The Impact of the Local Government Act 1988
Walsh, Kieron and Davis, Howard , 1993
Department of the Environment
A report on the impact of the first round of Compulsory Competitive Tendering from 1989-92 continuing the work begun by Walsh (1991), below. It looked at building cleaning, refuse collection, catering, school/welfare catering, grounds maintenance, street cleaning, vehicle maintenance and leisure management in local government. It also investigated the preparation for competition, client/contractor relations, workforce issues, quality and standards and  the financial effects.
ISBN 0 11 752808 0
UK


CCT Information Service - Survey Report No.6
Local Government Management Board, 1992

A survey of the state of the CCT market at the time of writing, with details on building cleaning, refuse collection, other cleaning, vehicle maintenance, catering (education and welfare), catering (other), ground maintenance, sport & leisure management, professional and IT services.

UK


Competitive Tendering for Local Authority Services: Initial Experiences
Walsh, Kieron, 1991
Department of the Environment
A government-commissioned study which reported on the results of the first year of the first round of Compulsory Competitive Tendering. It also investigated the preparation for competition, client/contractor relations, workforce issues, quality/standards and financial effects.
ISBN 0 11 752378 X
UK


Privatization, Contracting-Out and Public Sector Industrial Relations in the Thatcher Years in Britain
Beaumont, P.B. , 1991
Journal of Collective Negotiations, 20(2), pp.89-100
An article on the effects of privatisation and CCT on industrial relations .

UK


Compulsory Competitive Tendering in Local Government: The First Round
Painter, Joe, 1991
Public Administration, 69, pp.191-2000
A survey of the impact of CCT in 229 local authorities, including the impact on jobs.

UK


CCT Information Service - Survey Report No.1
Local Government Training Board, 1990

A survey on the state of the CCT market at the time of writing, with details on building cleaning, refuse collection, other cleaning, vehicle maintenance, catering (education and welfare), catering (other), ground maintenance, sport & leisure management, professional and IT services.

UK


The 1988 Local Government Act and Compulsory Competitive Tendering
David Parker, 1990
Urban Studies, Vol. 27, No. 5 (October 1990), pp. 653-667
This article reviews the Conservative's 1988 Local Government Act which extended compulsory tendering, assesses the evidence on efficiency savings, the services affected and considers the consequences for local government.

UK


The Competitive Advantage: Report of the CBI Public Expenditure Task Force
Confederation of British Industry (CBI), 1989

A report on the financial benefits of contracting in local government and the NHS, illustrated with case studies.

UK


Competitiveness and Contracting Out of Local Authorities
Audit Commission, Occasional Papers No.3, 1987
The Stationery Office
A forecast of potential cost savings that could be made by local authorities in refuse collection, vehicle maintenance and housing maintenance services by increasing the use of competition.

UK


The Politics of Privatisation: Contracting Out Public Services
Asher, K. , 1987
MacMillan Education
An analysis of the implementation of the Conservative government's competitive tendering policy in its early years in the health and local government sectors.
ISBN 0 333 40392 4
UK


Contracting-Out in Health and Local Authorities: Prospects, Progress and Pitfalls
Hartley, Keith and Huby, Meg, 1985
Public Money, September Issue pp.23-26
This paper, based on a survey of 75 local authorities and 10 health authorities, looks at the impact of UK goverment's policy of promoting competitive tendering for local and health services.  Average savings of 26% were found following the introduction of competition for delivery of the same level of service.  

UK


Last Updated: 05 May 2010