Impact of local government reform on service delivery and cost effectiveness
Date published:
Following an evaluation of the Local Government Reform Programme by DfC, a report examining the impact of local government reform on service delivery and cost effectiveness in Northern Ireland has been completed. The aim of this initial report is to provide an assessment of the impact of local government reform on service delivery and cost effectiveness on councils during the period 1 April 2015 – 31 March 2022.
The report concluded that whilst annual costs have increased this should be viewed in light of significant additional functions taken on by local councils as well as the investment in capital infrastructure over the timeframe. Inflationary uplifts should also be factored into the cost increases.
Most local councils have stated that it is not possible to quantify current and future efficiency savings due to lack of available information / limited timeframe. Those efficiencies that could be quantified highlighted savings of circa £21.5m as well as identifying a range of potential future savings moving forward. Feedback has suggested a range of non-quantifiable benefits have been realised – greater collaboration (COVID-19 response etc) and sharing of knowledge. Future investment opportunities of over £1bn have also been identified – feedback from councils suggest this level of leveraged funding would not have been achievable if not for enhanced scope of powers of new councils.
It is too early in the process to conclude if local government reform has been cost effective or not due to the lack of supporting data and limited scope for councils to fully realise benefits. The review period reflects only the initial seven-year period since the formation of the 11 new councils in NI.