It turns out that when know-how is scarce, organizations that invest in new IT or R&D derive significant benefits from the related investments of other organizations.
Unless the return on investment improves significantly, firms will remain reluctant to invest in new IT equipment and in research and development.
This might mean buying land near cross-channel ports that can be used to hold lorries awaiting customs clearance and investing in new IT solutions.
With £1bn still left to find, it warns "further savings can be achieved only by radical measures, such as outsourcing core services to the private sector, investing heavily in new IT systems, and moving to digital-only customer services".
It said councils needed to invest millions in new IT systems, hire new staff and write to more than 1 million social housing tenants to try and understand household income and approve individual tenant bills by January.
It said: "Councils need to invest millions in new IT systems, hire new staff and write to more than a million social housing tenants to try and understand household income and approve individual tenant bills by January.
