LGC special report: commercialisation
LGC has created a special report on commercialisation, in conjunction with DWF, assessing the challenges organisations are facing, the commercial models available and the strategies being adopted across the UK.
Many authorities have adopted corporate models when looking to trade, deliver homes, acquire assets or regenerate areas.
From hotels and shopping malls to leisure and commercial waste management, councils are adopting varying strategies in the search for income.
As councils grow their commercial approaches – whether from trading internal services or creating housing companies – having a clear strategy is crucial.
Many have noted irony in ministers latterly urging caution about commercialism in local government.
LGC’s Confidence Survey 2018 showed a sector in financial distress, with 34% of respondents expecting to issue a section 114 notice within four years.
As an adviser to many public sector bodies, DWF has seen a pronounced increase in commercial activity among local authorities in the past decade.
Our survey of senior local government officers reveals the expectations and priorities for commercial activity.