UK Rating after Scottish independence, Lloyds Bank reprivatised, Shared service savings, Scottish procurement, Civica wins ICT deal
0Scottish independence “unlikely to affect UK rating”
Scottish independence is unlikely to have rating implications for the UK sovereign, given Scotland’s small size relative to the UK’s economy and an independent Scotland’s likely investment-grade credit profile, according to a series of reports from ratings agency Moody’s. But it said that its conclusions depended on the UK’s debt obligations and the continued uncertainties around currency arrangements post-independence.
Lloyds reclassified as private entity
Lloyds Banking Group and its subsidiaries have been reclassified as private corporations following the latest sale of shares held by the government. In March, the government divested itself of shares equal to 7.8 per cent of the group, taking its shareholding to 24.9 per cent. In light of the move, the Office for National Statistics this week said that the government is no longer in a position to determine significant parts of corporate policy. Previously, the ONS had listed the bank as a public corporation.
Shared services reap £357 million of savings
Councils have saved £357 million through shared services initiatives, according to the Local Government Association. The figures claim to show that 337 councils are engaged in 383 shared service arrangements, and that savings increased by £83 million during the past year. Of the total historical savings, around £75 million have been made from back office shared services, such as legal, audit, HR and finance, according to the association.
Scottish councils increase use of collaborative procurement
Councils in Scotland are spending £503 million using pooled procurement contracts, according the country’s Accounts Commission. In a report, the commission said that progress had been slow in some councils but overall use of collaborative procurement had risen by 80 per cent over the past three years. But it called for further progress, saying that moving from paper to electronic payment systems, for example, could yield a further £9 million of efficiencies.
Councils sign ICT services contract
Business process supplier Civica has signed a £1.5 million shared services contract with South Hams District Council and West Devon Borough Council. The deal will see the company provide ICT services covering electronic document management, telephony, workflow, payment, CRM and mobile working solutions. The two councils have worked together for eight years, and the contract is the latest in a series of joint procurements.
Call for five-year settlements to help improve transport
Councils should be given five-year funding settlements from government to give greater certainty and to improve transport, according to a new report. Think tank Centre for Cities said that the current yearly settlement system is holding back improvements in bus and rail services. The report said that up to 40 per cent of capital project costs are in the planning stage, which presents huge risk for local government schemes.
