Neil McInroy Chief Executive Centre for Local Economic Strategies Public sector reform and role of VCS 15 th October 2014

What i CLES? Independent charity Economic development but with social fairness and within limits of environment Publishers: Established 1986 Planners, geographers, local government, environmental scientists, economists Hybrid; research, consultancy, members Leading UK member org for research into Economic development About CLES

We are in a transition phase Public services and Welfare provision is struggling all over the world Increasing demand and how to pay and deliver it UK Welfare state and public service model is at best creaking, at worst its on its last legs! A new social contract is being built now New relationship between state, public services and citizens

Something needs to be done or it breaks!

Increases in reactive spending in Gtr Manchester Source: AGMA-

Lots of new thinking Demand management Collaborative working Cooperative councils Community budgets Co-production/co-design Whole system thinking Local powers and flexibilities to do it - Combined authorities/City deals?

On a journey? STARTING TO HAPPEN; Existing science of demand management THE FUTURE: Whole systems, whole place Small scale projects/tests within aggressive austerity Redesign of whole system which is properly funded Simple to track savingsDifficult to track change Undertaken by individual public service bodies Shared principles Re-shift relationship between citizens and state on individual projects Co-production, codesign Fundamental shift btwn citizens, VCS and state Examples: Individual service reform Examples: maybe Oldham whole place Manchester civil economy

A civil economy Bringing economic growth and a ‘civil’ and ‘good’ economy into the mix Inspired by ideas around whole place, collaborative economy. Social inclusion as an input and outcome of Economic success Essential to reducing PS demand

Public sector reform Economic development Social Progress Whole system approaches Effective public services, improve lives and reduces demand Improving economy reduces demand. Public sector as input to economic success Social progress as an OUTCOME OF, and INPUT TO, economy success.

Today’s approach Local government integrates Public SocialCommercial We are on a collaborative networked journey... Public Social Commercial Public Social Commercial

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