Joined Up Budgets
The way that services are funded has a major influence over how they are delivered. Often it can be very difficult to co-ordinate service delivery between different organisations, because of different funding arrangements.
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Funding cycles can be different and often uncertain, meaning that it is hard for some organisations to commit to longer term joint initiatives. |
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Targeted or ring fenced funding can mean that organisations have specific priorities, which they must dedicate resources to. |
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Bureaucracy can sometimes make it difficult to take part in joint activities, particularly if it takes time and effort to access even small amounts of money. |
So joining up budgets can have a major impact on the way that services are delivered. And it doesn’t need to be complicated…
How can we join up budgets?
Understanding budgets A basic first stage is to get organisations together so that they all understand the way each other’s budgets work. This could involve: | |
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Scoping how much money is available – including what has yet to be committed |
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Reviewing timescales and funding cycles |
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Identifying current priorities |
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Find out more… Structures for service delivery partnerships – Advice about the different ways you can set up partnerships and co-ordinate your finances. | |
Jointly agreeing funding priorities and spending This is often known as ‘aligning budgets’. It means that organisations agree joint priorities for funding services. Normally, this would be set out in a joint plan. Each organisation keeps its own budget, and accounts for its funding individually. But, decisions about how funds are allocated are taken jointly. This is a good approach because it doesn’t need a separate financial agreement. But, it is quite informal. Find out more… Aligned budgets: a practical guide for local authorities and NHS Scotland – Information about aligning budgets which would be useful for all organisations, not just the NHS. |
Pooling budgets This involves organisations all contributing to one single joined up budget. This would normally focus on a particular theme – for example improving services for children. The range of organisations working in this field would each contribute money to the budget. And the partners would jointly take decisions about how the money is spent. This means that funds can be used in a more flexible and streamlined way. Normally one partner would manage the funds. Another option is to set up a new organisation (often a company limited by guarantee), which gives a formal structure to a partnership between the relevant organisations. Find out more… Pooling resources across sectors: a guide for local strategic partnerships – Detailed guidance on how to pool resources, including 15 English case study examples. Pooled budgets across local authority areas – An innovative approach used by a group of local authority areas in England, to join up community safety budgets across a whole region. Pooled Childcare Budgets – Four very well written, detailed examples of joined up budgets in childcare. They include key learning points and advice for others. Adult Care Services in Hertfordshire – The NHS Trust and Council have pooled their budgets for adult care, and set up a Joint Commissioning Board. |
