Stripping out costs and 'dimming the lights' is no longer enough to deal with the fiscal challenge, civil service head Sir Bob Kerslake told council chief executives last night.

Speaking at the launch of a new pan-public sector leadership training programme Sir Bob said that only through 'transformational change can we secure the outcomes we need.' He added; 'We are in for a decade of austerity which is a massive leadership challenge and can't be solved in one organisation.'