Procurement transformation to become:- 'Best In Class'

A 2 year plan to transform the way Liverpool City Council buys services in order to deliver better value for money for residents, is set to be implemented. Earlier this year, the Council commissioned specialist external consultancy 4C Associates to carry out a review of the existing systems and processes across the organisation. This was in response to the Best Value Inspection in 2021, and subsequent appointment of Commissioners.

The review covered £550 million of spend and all aspects of procurement activity across the organisation, from the initial stages of commissioning, through to tendering, contract management and payment together with governance, decision-making and general internal processes.

The review identified a wide ranging number of improvement opportunities to tackle challenges caused by the current operating model, which is described as:- "fragmented, overly complex and poorly understood."

It will see an enhanced focus on the delivery of overall value, including:- financial, social and environmental impact and return on investment, along with aligning the procurement strategy and contract management with the priorities of the Council and the City Plan.

The International Association for Contract and Commercial Management estimates that poor procurement and contract management costs companies between 4% and 9% in lost revenue; meaning the changes have the potential to deliver significant financial benefits.

As part of Mayor Joanne Anderson's commitment to delivering social value for residents and communities, suppliers will be monitored and held to account on their social value commitments through the inclusion of specific measures of success within contracts.

A number of short term actions will start to be implemented immediately to deliver rapid and tangible improvement. Longer-term opportunities including a new target operating model will be presented to Cabinet. in Q1 23/24, following the development of a change programme.

The changes form part of an overall Finance Improvement Plan, which is already under way. The findings will be considered by the Finance and Resources Select Committee, ahead of a Cabinet meeting, on Friday, 21 October 2022, and further scrutiny at Audit Committee, due to take place, on Wednesday, 26 October 2022.

Assistant Mayor with responsibility for procurement, Cllr Frazer Lake, said:- "This is a key part of our improvement journey to tackling the issues raised in the Best Value Inspection. At a time when we face significant financial challenges, it is more important than ever that we are making the most of every pound that we spend. Liverpool City Council is 1 of the biggest organisations in the City, spending large amounts of money on contracts and services. We have the power to shape that spending in a way that delivers huge benefit for local residents and communities. It is a key part of the Mayor's triple lock to make sure every decision we make is seen through the prism of the impact it has on people, planet and equality."

£50 million to tackle health inequalities through research

PEOPLE set to benefit from a £50 million research boost to tackle health inequalities in local areas and improve health outcomes across the country. The significant investment, overseen by the National Institute of Health and Care Research (NIHR), will enable 13 local Authorities to set up pioneering Health Determinants Research Collaborations (HDRCs) between with experts and academics to address knowledge gaps in local areas. This will enable new high quality research into the local challenges affecting people's health; such as facilitating research to better understand and introduce interventions to help with childhood obesity, Covid recovery, mental wellbeing and drug use. Local Authorities up and down the UK are being awarded funding; from Plymouth and London to Newcastle and Aberdeen; to ensure health disparities are being addressed across the board. This forms a key part of the Government's Plan for Patients by supporting people to stay well and within the community, easing pressure on health and care services and enabling people to access the care they need, when they need it. 

Minister of State for Health, Robert Jenrick, said:- "The Pandemic shone a light on the stark health inequalities that exist across the country; we are committed to levelling up the health of the nation. This funding will drive progress to address health challenges locally, particularly in the places and communities most affected by ill health such as high levels of obesity, drug use and poor mental health. Everyone should be able to live long, healthy lives regardless of their background and where they live, and this new research will help us deliver on our ambition."

This is the 1st time funding for research into health disparities has been given to local Authorities for them to lead on innovative new projects within their communities, signalling the Government's commitment to levelling up. Every collaboration will be set up in partnership between Universities and local Government, capitalising on the world leading experience and skills of the academic community. This will support the development of better data and evidence to inform local decisions to improve people's health and reduce variations in healthy life expectance between rich and poor. The funding will also help to stimulate economic growth across the country; particularly in some of the most deprived areas; by creating new jobs within research, as well as identifying local solutions to address some of the key challenges facing our society such as obesity and poor mental wellbeing.

Professor Lucy Chappell, NIHR Chief Executive Officer, said:- "Millions of people living in Britain's Towns, Cities and Regions face a huge range of public health challenges, made even more acute during the Covid Pandemic. Thanks to NIHR this vitally needed research funding will provide a foundation to galvanise local Authorities' capacity and capability to conduct high quality research. I'm always personally struck by how people working in local Government have the added advantage of knowing their local areas and communities. This investment will equip them to embed a lasting legacy of research culture to help local populations take huge steps forward in tackling health inequalities."

Professor Brian Ferguson, Director of the NIHR Public Health Research Programme, said:- "Many people living in communities across the country are facing major challenges that are impacting on their health. Our newly launched HDRCs will serve as nationally recognised centres of excellence, boosting local Government's ability to tackle these challenges by enabling breathing space to become more research active. This is a hugely important step forward in 1 of NIHR's key aims to help local Government develop research that improves health and wellbeing. By focusing on the wider determinants of health such as employment, housing, education and the physical environment, the areas we are supporting have a tremendous opportunity to make a lasting impact on health inequalities and wider deprivation."

Professor Jim McManus, President of the UK Association of Directors of Public Health, said:- "We know that health inequalities are 1 of the major barriers facing communities the length and breadth of the country, especially for disadvantaged groups and areas. HDRCs will help drive the research culture within local Government, building on the local knowledge that Authorities already have and enable what is being done to be more readily researched and evaluated to make a difference to local people."

In addition to the research funding, staff working across the health and social care sector will be better equipped to tackle health inequalities, following the publication of a new e-learning resource developed by the Office of Health Improvement and Disparities (OHID) and Health Education England (HEE). The free to access module brings together bite-size learning on what health inequalities are, as well as the actions and interventions that frontline staff, leaders, and commissioners can take to address them in their day to day work. It has already been proven to give users a deep understanding of health inequalities and how they can be tackled, helping to improve quality of life while reducing costs to the NHS and benefitting the wider economy.