The economy drive’s local dilemma

Councils face conflicting demands from the government – to use cost-saving national deals and develop local businesses. David Arminas reports

The government has finally set out how it wants local authorities to meet the chancellor’s efficiency savings target of £6.45 billion by 2007-08.

Gordon Brown’s spending review in July called on each authority to save at least 2.5 per cent of its budget through more efficient delivery of services and procurement. This amounts to £6.5 billion of the total local...

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