Is There a Better Way for Local Authorities to Manage Resources?

The financial outlook for local councils in the UK is currently quite bleak. With 1 in 10 county and unitary authorities uncertain about their ability to balance their books, and the warning from the Local Government Association that 1 in 5 local authorities may face bankruptcy within the next year, it is clear that tough economic times are exacerbating an already challenging situation.

This lack of financial clarity is further complicating matters for councils, particularly with a decade of austerity increasing pressure on budgets. This has left many councils feeling as though they are navigating blindly, only to encounter a ‘Section 114’ obstacle when it is already too late.

Ian Owen, public sector industry director at TechnologyOne, recently visited Australia to observe how councils there are utilising modern Enterprise Resource Planning (ERP) technology to reduce costs and enhance services for their communities. He suggests that the UK could benefit from the integrated enterprise solutions widely employed by Australian councils.

In Australia, councils have embraced Software as a Service (SaaS) ERP systems, resulting in substantial operational cost reductions. For instance, Wollongong City Council experienced significant improvements in their ability to efficiently deliver services to their citizens after adopting a SaaS ERP system, freeing them from the burden of constant software management and upgrades.

The use of technology has also enabled councils like Shoalhaven to implement AI-linked cloud-based systems for road maintenance and safety, seamlessly integrated with their SaaS ERP system. This has notably reduced inspection time and enhanced efficiency.

In addition to cost savings, the adoption of a unified enterprise model has also provided stronger defences against cyber-attacks for Australian councils, with no successful cyber-attacks reported in 2023.

While it is evident that digital transformation is essential to address the challenges faced by UK councils, financial constraints often hinder their ability to take the necessary steps. Nevertheless, there are examples of successful transitions to modern ERP solutions, such as the case of Blackpool Council, which implemented an integrated ERP SaaS solution in 2019.

In conclusion, it is clear that the adoption of modern, comprehensive, and cost-effective ERP alternatives could offer UK councils the efficiency gains and visibility needed to navigate the complexity of their operations. The time has come for CFOs and CIOs in councils to challenge the status quo and explore these solutions in order to effectively manage their organisations in the future.