Localis report suggests using the South East’s potential to drive national renewal and avoid crisis.

Localis, a leading think-tank, has released a report urging the government to use the next Comprehensive Spending Review (CSR) to support and revive local authorities in the South East of England. The report, titled “Restoration and Resilience: building capacity and capability to deliver local services in the South East”, highlights the challenges faced by councils in the region and offers recommendations for addressing them.

Despite its reputation for prosperity, the report reveals that councils serving the 9.2 million people living in the South East are experiencing significant financial strain. This has resulted in a decline in their capacity to deliver essential local services.

The report recommends that the government grant councils in the South East more powers over local public sector recruitment policies and to set more competitive pay scales. This would help attract and retain talent in the region, especially in roles such as care workers and green skills.

Additionally, the report suggests that councils in the South East would benefit from devolved control of immigration policy for key roles and in green skills, which have been affected by workforce shortages since Brexit.

The report highlights key findings such as financial strain, capacity crisis due to a shortage of skilled staff and outdated workforce practices, and fragmented governance hindering effective collaboration and strategic planning in the region.

To address these challenges, the report recommends measures such as strengthening financial governance and strategic leadership, diversifying revenue streams, investing in workforce development and capacity building, promoting collaboration and partnership working, and reforming the funding system. It also advocates for empowering local authorities through devolution.

Jonathan Werran, chief executive of Localis, emphasizes the urgency of the situation, stating that “The South East is a vital economic engine for the UK, but its local government system is under severe strain.” He calls for immediate action in the forthcoming finance settlement and Comprehensive Spending Review to ensure that councils in the region have the resources and tools to deliver essential services and drive economic growth.

Sean McKee, director of South East Councils, highlights the importance of addressing the workforce crisis in local government, which is crucial for delivering national missions for economic growth and social benefit. He stresses the need to address existing gaps and limits in service delivery before granting any new responsibilities to councils.

Ruth Adams, chief executive of South East Councils, also expresses support for the report, stating that “As the regional employers’ organization for the South East, we are pleased to support this report and to shine a light on these crucial issues.”

The report also includes recommendations for both local and central government, including the need for a long-term funding stream for social care, a renewed Fair Funding Review, and a comprehensive reset of business rates. It also calls for the government to empower the new MHCLG Workforce Development group to provide support measures for the staffing crisis in local government.

The report calls for collaboration between councils in the South East to manage public service contracts, engage in strategic workforce planning, and work towards revitalizing apprenticeships and training. It also recommends collaboration on infrastructure and housing delivery, with a focus on aligning investments with climate resilience goals.

The report is being launched at an evening reception on Wednesday 4th December at One Great George Street, Westminster. It is available for download on the Localis website.