Keith Wakefield: Public sector can profit from partnership in hard times

Like many northern cities, Leeds must now determine how it responds to the current social, political and economic change and how we must drive our own local economy.

Despite the challenges and change we face, Leeds remains a hugely ambitious city – and rightly so. What that means for the council is that we must change as well so that we can deliver on those ambitions.

But the financial challenges are not going to go away. In 2011/12 alone, Leeds has to meet a £90m shortfall in funding while at the same time responding to growing pressures on vital services. What is more, we know that those financial challenges will continue well into at least 2014.

We, along with other public sector partners, have had to make some really tough spending decisions. We’ve had to stop providing some services and begin charging for others. Tough decisions are being taken daily about how we protect vulnerable people and prioritise services for those most at risk.

We’ve had to work hard to manage our budget while attracting more inward investment to create more jobs and build on our ambitions.

Whatever model of local government develops, it needs to be one which has the traditional values of public service, but complements it with the best from other sectors.

For example, we have thriving voluntary and not-for profit sectors in Leeds and I have seen many of these organisations in action providing vital services to the residents of Leeds.

We need to reinvigorate local government by forming partnerships to re-inject that sector with the spirit of civic entrepreneurship as personified by Joseph Chamberlain in Birmingham and Titus Salt in Bradford.

While councils need to become more business-like, at the same time businesses need to take on more civic responsibility, to work hand-in-hand with local government with the third sector acting as the catalyst.

Local government can no longer just operate in its own world. If we are to deliver better outcomes for local people we have to change. Entrepreneurship requires us to embrace new ways of working. We are becoming more flexible and we have to work far better with others. We also need to adopt some of the behaviours of entrepreneurs and generate a sense of enterprise and excitement and be prepared to take some risks.

Entrepreneurship is not solely the domain of the private sector. We can develop, adopt and harness these skills in the public sector and create social entrepreneurs. In my view this is what will invigorate local government. By working in this way with others, the sum of the whole will be greater than our own and the outcomes all the more impressive.

Through creative partnerships and innovative ways of working, we will secure a brighter future for Leeds, particularly for our young people.

If young people are to have the chance to fulfil their potential, and achieve their ambitions, we need to make sure the opportunities are there to provide training and employment.

As council leader, I will make sure we get the message out there that Leeds is open for business.

For a council with drastically less money available, securing investment brings advantages above and beyond jobs and training. Delivering economic growth will be key to making regeneration a reality in some of our most disadvantaged communities.

New industries may also provide creative new ways to deliver public services, which the council can no longer afford to deliver on its own.

We want to work with partners to deliver a Retail Academy in Leeds and support businesses in delivering more apprenticeships. Giving young people employment and training opportunities that will ultimately lead to challenging, rewarding careers.

We are turning to growth sectors by maximising the opportunities to share in the success of new, emerging industries – low carbon and medical technologies industries, for example.

The new Enterprise Zone in the Aire Valley will provide opportunities for the growing low carbon economy. Green industries will be hugely important over the coming years, and Leeds should be attracting a slice of that investment.

Equally the medical technologies industry will soon be worth £300bn. Leeds boasts one of the country’s top five universities, will soon be the site of the new NHS National Commissioning Board and has Europe’s largest medical engineering research centre. These are strengths we can capitalise on. The council will act to enable these businesses to invest and expand in the city.

Financial services remain at the heart of much of what we do in Leeds. The bid for the Green Investment Bank can build on our city’s proven track record of success in this sector.

The future of the public sector is one of partnership working. I can’t pretend the next few years will be easy. However, that change in the way we work, and the creativity that brings, will be key to helping this city and its people achieve their aspirations.

• Coun Keith Wakefield is the Labour leader of Leeds Council.