New research suggests that local authorities expect to increase their outsourcing levels by 70 per cent between 2011 and 2014, potentially creating greater opportunities for voluntary organisations to deliver public services.

A survey of 101 local authority CEOs and other senior managers commissioned by support services group Interserve and conducted by YouGovStone showed that nearly three out of five councils consider outsourcing critical to helping them achieve their savings targets.

They expect to move from 20 per cent average outsourcing levels in 2011 to 34 per cent by 2014.

However, the research also revealed that 25 per cent of councils do not expect to meet their savings targets by 2014, and two out of five have still not decided how they are going to make the cuts required, more than two months into the new Comprehensive Spending Review period. 

This finding is borne out by research just conducted by Charity Finance amongst large and medium-sized charities that derive at least 70 per cent of their income from statutory sources. 

Most report that many local authorities are still in disarray and have not yet agreed fees for the current financial year.  They are still trying to make cuts internally and are in the midst of staff consultations and other cost-cutting exercises, so for the time being fees are being assumed to continue at the same level as last year.

The full analysis of this research will be published in Charity Finance and on civilsociety.co.uk next month.