At the latest Independent Revenues & Benefits Discussion Group, held on 14 April 2025, a broad panel of local authority leaders came together to discuss the realities of delivering frontline services in an era of deepening financial constraint. The conversation, chaired by Malcolm Gardner, focused on departmental budget reductions, the role of automation and AI, and the wider structural pressures impacting public service delivery.
Budget Cuts and Strategic Prioritisation
Laura Bessell opened the discussion with an overview of the 5% cut to Oxford’s Revenues and Benefits budget—a reduction she characterised as moderate compared to other departments. She explained that statutory services such as hers are relatively protected but emphasised the importance of long-term planning and alignment with Council priorities. “It’s about service enhancement to deliver savings over the next two to three years,” she explained, pointing to the city’s medium-term plan.
Julie Smethurst echoed these views, describing a £300,000 saving target for her own authority. Like Bessell, she stressed the importance of using automation to free up capacity for specialist roles and more targeted support for vulnerable residents. She also highlighted the need to rethink evidence requirements and simplify transactional processes.
Kirsty Brooksmith spoke of even more significant pressures, noting that her local authority had introduced “star chambers” to reassess every non-statutory service. “We’ve had £80,000 arbitrarily removed with no plan for how to meet the shortfall,” she said, also noting staffing challenges and rising pressure on employee wellbeing. “It’s a perfect storm,” she added, citing the end of targeted DWP funding streams and rising local demand.
Automation, AI and Cultural Shift
Technology was a recurring theme throughout the discussion. Bessell and others noted the potential of automation and self-service platforms, but also their limitations. “People still want to speak to someone to pay their council tax,” she observed, warning that poorly designed forms could create inefficiencies rather than resolve them.
Julie Smethurst noted that automation is most effective in high-volume, low-complexity transactions but added that services must better understand their own processes before applying technological solutions. She also raised concerns about chatbot systems that trap users in unhelpful loops, although she and Brooksmith both recognised improvements in newer systems that now adapt more flexibly to user input.
Thomas Clark built on this, distinguishing between generative AI and machine learning, the latter being more relevant to improving customer interactions. Drawing on experience from multiple councils, he argued that local authorities must first fix underlying issues like outdated IVR systems and inconsistent data before embracing more advanced solutions. “There’s a lot of transformation work to do before we even get to AI,” he said, citing practical tools like open banking payment links as immediate opportunities.
Strategic Context and Long-Term Concerns
Elizabeth Whitehead-Davies contributed a housing association perspective, noting parallel challenges in shifting to digital services while ensuring vulnerable residents are not excluded. She stressed that digital tools must be both reliable and accompanied by policy choices that encourage adoption.
Later in the session, Paul Howarth drew attention to the broader political and financial landscape. He noted that unprotected departments such as DWP and local government are facing 15% savings targets by the end of the decade. He questioned whether the current system of funding allocation adequately reflects differences in local pressures and demographic change.
This theme was picked up by Bessell, who cited local examples from Oxford, including the impact of national electric vehicle policy changes on BMW’s Cowley plant. “There’s lots going on in different pockets of government and councils,” she said. “We just can’t pick everything up.”
Looking Ahead
The meeting concluded with a call for better data, joined-up thinking, and more responsive funding mechanisms. Malcolm Gardner highlighted recent reports from the Institute for Fiscal Studies and the Resolution Foundation, which revealed large regional differences in service consumption and budget pressures—variations not currently reflected in funding formulas.
There was wide agreement that while automation and AI offer promise, the immediate need lies in understanding local data, improving processes, and protecting the specialist skills needed to support the most vulnerable. As Bessell succinctly put it: “There’s always a new problem every day. It’s just like a wave comes over you.”
The recording can be found at Recording Link
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