The Comprehensive Spending Review may alter the way councils conduct business, unless local government can more efficiently pool activities, a new report concludes.

Independent think tank the New Local Government Network (NLGN) warns in its Politics of Shared Services report that council leaders will need to learn lessons from public sector trailblazers in order to overcome parochial concerns.

And combining council functions will be intrinsic to the success of local cost-cutting measures.

“Government should avoid the temptation to mandate change and instead create a framework of incentives to encourage authorities to share services, with clarity over retained savings and stability on local government structures,” said NLGN director Chris Leslie.

“The accountability demands on local government mean a transparent citizen-focused approach must be at the heart of shared service strategies, with an explicit statement of intended savings and benefits published at the outset of new ventures and greater buy-in from the overview and scrutiny process,” he added.

Efficiency savings outlined in Sir Peter Gershon’s review can be achieved “without sacrificing cherished policies”, Mr Leslie believes.