Let councils sharpen commercial edge to gain levels locally

A new report has advised that councils should have the confidence to engage in well-run commercial activity that benefits residents, improves local public services and generates much-needed revenue separate from central government.

The paper, from Human Engine and Localis, argues that whenever carried out professionally with risks properly-managed, council commercialism can unlock immense latent place potential and deliver many clear advantages to galvanise economic and social recovery.

In reframing the debate on local government commercialism, councils are encouraged to apply five common themes of business maturity around strategy and alignment; supply; demand, market intelligence and organisational culture. The report also sets out a suite of recommendation to see future commercial decisions aimed at municipality leaders, town hall scrutiny members and central government partners.

Jonathan Werran, Localis chief executive, said: “Councils have historically been involved with commercial activity in certain shape or form in creating revenue streams that improve residents’ lives and deliver better local services.  This can be a golden thread and is one worth preserving into the future. To keep this tradition of strong self-government built on local investment and employ this agenda to continue to provide innovative public services in to the future will require a shared language and understanding of how commercialism should operate in practice across local and central government.

“Renewing the agenda will also rightly need a fresh approach to local scrutiny and governance and the immense rewards of capturing greater public and social value should be measured to inspire best practice over the sector.”