East Midlands councils combine services
Leicestershire County Council and Nottingham City Council have signed an ‘innovative partnership’ deal that they say will save more than £2m per year.
The two authorities have agreed to share administrative functions, including human resources, payroll and finance services, in the first step of a new East Midlands Shared Services centre.
It is believed to be the first such deal involving a county council and a city council from another area. The councils say that the move “could attract other authorities”.
Leicestershire County Council leader David Parsons said: “In these challenging times, our innovative agreement shows how authorities can achieve real savings by working together. Every pound we save is a pound that we don’t have to take away from the frontline. I would encourage other authorities in the Midlands to consider joining us and achieve benefits themselves.”
Communities and local government secretary Eric Pickles said that the move was “exactly the sort of innovation that will help councils to protect hardworking families and the most vulnerable”.
He said: “By sharing back office services, they'll be able to protect the frontline - and even improve the choice and services that are on offer to local residents.
"We're supporting these sorts of moves by giving unprecedented freedom and flexibility to councils to make their own choices, funding a council tax freeze and calling time on the bureaucratic red tape and pointless form filling that has hampered councils for so long.
"Sharing services is just one of the options open to councils to ensure they are making the most of every pound they have - alongside moves to become more transparent, improve procurement and cut out waste."
The councils said that the shared services deal is ‘scaleable’, meaning that it can be expanded to offer comparable savings if other authorities decide to join.
