Martin Pilkington gives some advice to councils considering externalising services or seeking a partner with the private sector.

Recent announcements in the Spending Review of further cuts are beginning to accelerate moves in local government to find external ways to cut costs and consolidate services. The report last year from the Audit Commission on council responses to a challenging financial climate states 'most councils prepared well for 2011/12, but the future will be challenging for all councils. ' It shows that Government funding has fallen by 11.8% in real terms since 2010/11 and this situation has been compounded by a fall in income.