The Treasury should explore further devolution of spending to local authorities to drive efficiencies, according to a report from a leading government think tank.
The Institute for Government, in a report on the forthcoming spending review, said that the government should work with selected councils to see what savings can be made from decentralisation.
It quoted a former minister who said: “The only way to drive further value out of public services is to push responsibility down to local level and let local leaders innovate within a tough financial envelope.”
The report also said that the Treasury needs to make sure that the spending review settlement “matches a set of clear decisions on what local government should be delivering”.