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Recent events in Northamptonshire have hammered home the message that local government has reached a tipping point in terms of its finances. Anyone who thinks that the problems faced at the County Council are unique is in for a rude awakening. In this context is it time for a new municipalism?

With policy pressures piling up and budgets diminishing rapidly for many services it is time for local authorities to take back control of their areas by reclaiming entrepreneurship, rather than the outdated thinking that someone else should do this for them. This is not about acting commercially in the blind pursuit of income generation but to identify the major policy puzzles facing communities and thinking creatively and innovatively about how to solve these policy conundrums. Where markets have failed to deliver the outcomes that local communities need then it’s time for local councils to step up to the plate.

Commercialisation strategy 1.0 was very much about trading and charging, using some surplus capacity or getting additional benefits from assets during the 1980’s. Fast forward to today and version 10.0.3 of that strategy is hugely different in scope and range.

Of course local authorities have suffered heavily as a result of austerity and still face further huge financial challenges, not least an intention by Government to almost completely remove RSG by 2020, however impractical and unfeasible this may appear for many areas of the country.

There are some who criticise local government as being bureaucratic and lacking in creativity. In reality, local councils are being highly innovative in plugging the income gaps left by ongoing austerity and there is something of a renaissance in municipal investments.

APSE and CIPFA property services set out to identity the scale, scope and advantages of municipal investments and the results of our research have found councils taking a measured approach to investments designed to balance risk and rewards. In many ways asset investments allow councils to convert capital investment into revenue - helping them to sustain local services.

With the spending review completed and the annual financial settlements for local government across the UK done and dusted, we now know where budgets broadly stand, between now and 2020 and it’s taking local government expenditure to its lowest percentage of GDP since 1948.

The move to four year budgets in England will see significant further pain, on top of that already experienced, over the next couple of years, before a stabilisation in the latter years of that settlement. This of course optimistically assumes that there will not be a further recession during this period, high levels of house building will be achieved and the move to localise business rates will run smoothly and fairly.

Looking to the future, one theory that increasingly catches my attention is that of ‘collaborative innovation'. It's part of the move away from the outdated concepts around new public management towards ideas around new public governance.

So what’s it all about? Whilst new public management focused on markets, competition and customers and obviously delivered benefits for some, it failed to deliver innovation for the public themselves. New public governance is more about actors across the public, private and third sectors coming together with service users, through partnerships and networks, to learn and contest each other’s thinking and generate new solutions to the challenges society faces.

Now that we are over halfway through the financial year, more and more councils are revisiting plans they have made to generate efficiency savings to see if they will stack up and achieve their desired outcome for this year and beyond.

At APSE, we have noticed an upsurge in enquiries about how you make remaining services more commercially viable by either reducing costs or generating additional revenue to offset budget cuts. This suggests that councils are concerned they may fail to meet existing targets and are attempting a ‘take two’.

Took part in Guardian online debate today on managing parks and green spaces despite the budget cuts and with over 100 posts in two hours it was a lively debate.

I pushed the APSE line about whilst we disagree with the cuts we recognise that they are happening and therefore we need to find ways to stop services from imploding. The only response is to seek efficiency, generate additional income and innovate.