Evening Standard

Councils are the new entreprene­urs

Commercial­ly minded and at the vanguard of innovation — few would describe local boroughs as such exciting places to work. But if authoritie­s are to meet growing demand, they are going to have to attract bright brains, writes Niki Chesworth

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FEW associate the public sector with entreprene­urialism and innovation. However, dedicated public servants who think they can deliver services better or more efficientl­y can be both entreprene­urial and innovative by running their own enterprise — a public service mutual.

These organisati­ons, that have left the public sector but continue to deliver the service, are just one of the options for those who want to combine their passion for helping others with an interestin­g career.

Public sector mutuals are part of a new wave of entreprene­urialism in local authoritie­s with six in 10 now owning trading companies and most now operating a joint venture with the private sector.

Without entreprene­urial activities, eight in 10 say they would have to cut services and raise taxes, according to a new report from Localis, Commercial Councils: The Rise of Entreprene­urialism in Local Government, which forecasts that the entreprene­urial councils agenda could account for at least £27.4 billion of additional revenue for local councils by 2020. This could subsidise the constructi­on of 80,000 homes across England or pay the annual salaries of more than 58,000 teachers.

However, entreprene­urialism takes a different mindset, which is why councils and the appropriat­e profession­al bodies are being told they need to increase the focus on commercial and financial skills as part of profession­al developmen­t. They also h ave to attrac t the right talent, including bright graduates who could have their pick of any career path. So why, when local authoritie­s are struggling in challengin­g times, would anyone want to work for a borough?

It certainly will not be for the pay. Recent research by Emolument.com reveals there is little difference in pay for a graduate with less than five years’ experience who works in local government, accounting, marketing or media. However, as the years add up the career difference is vast.

After 15 years into a career, those in the media can expect to earn as much as 87 per cent more — or about £63,000 — if they work as a media executive rather than in local government.

The gap is even larger when compared with finance. A senior profession­al in local government with 15-plus years’ experience can expect to earn £72,000 compared to £304,000 in the financial sector.

So you would think that authoritie­s would really struggle to attract talent. Howeve r, the Local Government Associatio­n’s National Graduate Developmen­t Programme (NGDP), which is currently selecting its next cohort, has thousands of applicants.

Alex Thomson, chief executive of Local is, says this is because local authoritie­s are now an exciting place to work. “Councils have borne the br unt of austerity, but they have responded with striking innovation to minimise the impact of cuts on their residents. In particular, our research shows councils becoming ever more commercial­ly savvy, bringing money to support vital local services. There is

Alex Thomson, Localis chief executive

also a growing movement towards localism and all authoritie­s are becoming more innovative and entreprene­urial,” says Thomson.

“If they continue in this vein, council income from trading will treble in value by 2020, bringing in 18 per cent of budgets, up from six per cent today. However, the challenge is that the skills are not necessaril­y there and commercial skills now need to be at the heart of developmen­t of all public sector officials. But we also know that there are already highly skilled people within local government.

“Councils attract people who want to do something for their community as they feel their work will be more worthwhile and often more interestin­g.

“Although they may not believe in working in a profit- orientated environmen­t, they are getting better at it, particular­ly as more and more profession­als are working in shared services for two or even three authoritie­s. That allows them to be better paid and makes the jobs more interestin­g. Local authoritie­s do attract some high quality people from central government and even the pr ivate sector.”

Every year between 1,500 and 2,000 graduates apply for a place on the programme run by the Local Government Associatio­n, with only 100 to 120 places per cohort.

“Graduates who apply are often motivated by the tangible, positive outcomes provided by a career in local government,” says a spokespers­on for the NGDP.

“Passionate about making local communitie­s better, they want to help councils innovate and transform to continue improving service provision. The variety of work, from policy to frontline delivery, and the broad range of issues including housing, economic regenerati­on, public health, education and green initiative­s to name a few, offer unlimited opportunit­ies.”

Local authoritie­s also offer a wide variet y of other roles — not just in management but also finance, procuremen­t and HR.

Mark Hynes, who has worked in both the private and public sector as a solicitor, says:“I continue to be impressed at the talent and dedication of the lawyers we are able to attract into local government.

“If you are entering local government as a trainee solicitor, one of the unique advantages you enjoy over your counterpar­ts in the private sector is the rights of audience that are conferred on officers with a local authority before a magistrate­s’ court, where local authoritie­s will often be bringing various prosecutio­ns, such as trading standards and planning enforcemen­t matters.

“Also, a trainee solicitor can expect to be spoilt for choice in terms of the wide range of areas that in-house local authority lawyers get involved in. In fact, I would be struggling to think of a more varied work environmen­t for a trainee solicitor to gain valuable legal experience.”

Finance profession­als also find the public sector can offer benefits not available within the private sector, with the Chartered Institute of Public Finance & Accountanc­y saying that two years after qualifying, earnings range between £32,000 and £65,000 with senior level post holders earning upwards of £80,000.

‘Although councils may not believe in working in a profit-driven environmen­t, they are getting better at it

 ??  ?? Wings of change: Chicken Town is serving healthy food and creating new jobs for local young people in Tottenham
Wings of change: Chicken Town is serving healthy food and creating new jobs for local young people in Tottenham

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