The digitalisation of local UK councils has become an increasingly vital strategy as the trend towards value maximisation, cost reduction and latterly devolution continues to gain momentum. At McKinney Haarcourt, we understand that as councils take on greater responsibilities and face mounting fiscal pressures, leveraging an effective digital strategy and implementing robust, secure and adaptable solutions offers a pathway to enhance service delivery, improve efficiency, and facilitate better outcomes for local constituents.
One of the primary outcomes of an aggressive and intentional digitalisation strategy is of course the potential for value maximisation, the lowering of repetitive processing costs and the leveraging of council-wide and system-wide data, transformed into knowledge.
Through effective and client-focused (where the client is the constituent NOT the internal user) outcome targeting, by streamlining processes and automating routine tasks, councils can greatly reduce administrative overheads and be best positioned to reallocate resources more effectively. For instance, according to a study by Deloitte, the implementation of cloud-based solutions has enabled 88% of UK councils to improve data management and cut operational costs. These savings are crucial as local authorities grapple with reduced funding and the need to maintain service quality despite budget constraints.
Notwithstanding the evident benefits of digital transformation, fiscal constraints present a formidable challenge. The austerity measures implemented following the 2008 global financial crisis have resulted in substantial reductions in local council budgets. Between 2010 and 2020, funding allocations for local authorities experienced a near 50% decrease, necessitating a comprehensive reassessment of expenditure strategies.
Thus, the imperative to maximise efficiency has become paramount. Local authorities face mounting pressure to sustain, and ideally enhance, service quality whilst operating within increasingly constrained financial parameters. This scenario has catalysed the adoption of digital technologies as councils endeavour to optimise resource utilisation. A case in point is the London Borough of Hackney, which implemented a comprehensive digital strategy, including the digitisation of its housing services. This initiative yielded a 25% reduction in administrative expenditure and markedly improved service delivery timelines.
From a client perspective, digitalisation can if done right pave the way for a more responsive, holistic and accessible service across the board. By adopting digital platforms (particularly document management, process control, project management, and bespoke data-spine centric solutions etc), councils can (per Deloitte report) process tasks up to 90% faster than traditional methods, leading to substantial improvements in service delivery speed and accuracy.
This enhanced efficiency not only benefits residents but also allows council staff to focus on more complex issues that require human intervention. Moreover, the use of narrow artificial intelligence in customer service, such as chatbots, has improved citizen engagement by providing instant responses to queries and reducing the workload on council staff.
The shift towards digital services helps promote greater transparency and accountability in local governance. By leveraging data analytics, councils can make more informed decisions, identify patterns, and allocate resources more effectively as well as share democratic information, demographic data and business critical knowledge, enabling commercial and economic growth through a process of “Active Insight Initiatives”. For example, the Greater Manchester Combined Authority has improved its public health initiatives through the use of in-house and automated narrow data analytics, resulting in better-targeted interventions and improved health outcomes for residents and, this approach not only enhances service delivery but also helps (re)build trust between councils and their constituents.
Of course, digitalisation plays a crucial role in fostering local economic growth and as leaders of “place”, digitalised councils are well-positioned to assist in unlocking knowledge of the local, regional and national economies and driving locally global growth in their respective economies.
An effective strategy for digitalisation, aligned with goals around NetZero and de-carbonisation together with fostering and growing local businesses will mean that forward-thinking and innovative local councils can support the government’s ambition to make the UK a science and technology superpower (link). This focus on digital transformation can unlock new job opportunities, attract inward investment, and boost the local economy.
Finally, as devolution continues to reshape the landscape of local governance, digitalisation offers councils the tools to meet these new challenges head-on. Through effective digitalisation local authorities can not only improve service delivery and efficiency but also play a pivotal role in shaping the future of their communities. The journey towards full digitalisation may be challenging, but the potential benefits for councils and residents alike make it an essential strategy for the future of local government in the UK.
Reach out and let us explore the possibilities, together.
