• Home
  • About
  • 151 IMPACT AWARDS
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

Impact Awards –>
  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Four virtual councils to merge services in private company

0
  • by Colin Marrs
  • in 151 News · Recent Posts · Resources
  • — 28 May, 2014

Four councils have unveiled proposals to merge all of their services into a single, jointly-owned standalone company.
Leaders at Cotswold, Forest of Dean and West Oxfordshire District Councils and Cheltenham Borough Council have set out their 2020 Vision for Joint Working, which councillors will vote on by the end of June.
The move would mean that the councils would no longer directly employ any of their own staff, although a small number of advisers may be retained for councillors.
David Neudegg, chief executive of West Oxfordshire District Council and Cotswold District Council, told Room 151: “Lots of councils, including ourselves, have done elements of this – shared services and standalone companies to deliver services – but nobody has taken the comprehensive approach we are suggesting.”
Neudegg said that initial estimates were that the councils could save £55 million over 10 years.
Savings from staff costs are estimated at between 15% and 23%, with a 2-3% estimated efficiency gain from joint procurement processes.
In addition, the document says that “substantial efficiencies could be achieved through developing an integrated plan across all of the councils by maximising space in a smaller number of buildings overall”.
The proposal outlines how the company could take the form of a holding company jointly owned by all four councils, with three sub-companies delivering the services.
Neudegg said that there would be inevitable staff reductions under the new structure, but that the process would take place on an “evolutionary basis” without large scale job losses.
An attempt would be made through any new company to provide geographical services in some service areas, such as planning, where they were considered beneficial, he said.
“It is possible that some teams might just focus on delivering services to one particular council.”
Some issues still have to be overcome, including legal restrictions on local authorities outsourcing statutory decision making functions, including the section 151 officer role.
Neudegg said: “The law seems to say that a statutory officer has to be employed by a council – it was formulated at a time when this sort of model was unimaginable.”
In addition, the councils will examine whether the establishment of a company changes the level of obligations placed on local authorities – from the publication of budget figures to freedom of information requests.
If members on all councils back the vision, with votes expected by the end of June, a detailed programme plan will be developed over the following six to nine months, with final approval expected in Spring next year.
The councils will use cash from a £500,000 transformation grant from central government in April to assist work on the new proposed arrangements.
Lynden Stowe, leader of Cotswold District Council, called the proposals “perhaps the most radical joint working approach in local government today”.
Patrick Molyneux, leader of Forest of Dean District Council, added: “By reducing the administration and running costs of the councils we can spend a bigger proportion of our budget on delivering the frontline services our communities need, while keeping the democratic decision making of local councillors intact.”
The participating councils are building on a track record of joint working, with all four already sharing finance, procurement, HR and payroll services.
Cheltenham and Cotswold councils already own a joint company, Ubico Ltd., to deliver waste, recycling and depot facility services, while Cotswold and West Oxfordshire councils were among the first authorities in the country to create a joint chief executive role in 2008.

Share

You may also like...

  • TfL rating, Liverpool/BT deal ends, Birmingham NEC sale, CIPFA apprenticeships, Capita property audit TfL rating, Liverpool/BT deal ends, Birmingham NEC sale, CIPFA apprenticeships, Capita property audit 7 Mar, 2014
  • Kingston set to push ahead with £800m regeneration JV Kingston set to push ahead with £800m regeneration JV 21 Mar, 2019
  • The two Sues of Guildford DC The two Sues of Guildford DC 1 Dec, 2011
  • Business rate group set to see first reports on devolution progress Business rate group set to see first reports on devolution progress 12 May, 2016

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 2 days ago

    Impact Awards: Liverpool’s cafe culture and Warrington’s investment in homes: The CCLA/Room151 Impact Awards showcase  finance teams with a direct impact on their local communities and the environment. This week we spotlight Liverpool City Council’s… dlvr.it/RxJsKb pic.twitter.com/dEYpaz6HP0

    Room151 2 days ago

    Doing something in #localgov #finance for housing or regeneration? Check out the 'Place Shaping' category room151.co.uk/impact-awards/… sponsored by @31tenConsulting in the CCLA/Room151 Impact Awards. #timetoenter !! pic.twitter.com/dU99vE6Wws

    Room151 3 days ago

    Doing something in #localgov #finance for Adult Social Care & Health? Check out the ASC&H category room151.co.uk/impact-awards/… sponsored by Fundamentum Social Housing REIT in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 3 days ago

    Doing something in #localgov #finance for the environment? Check out the 'carbon management' category room151.co.uk/impact-awards/… sponsored by @ACSLLP in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 3 days ago

    So what are the seven categories for the CCLA/Room151 Impact Awards? Here they are room151.co.uk/impact-awards/… #localgov #finance #outcomes

    Room151 3 days ago

    Why should LGPS be concerned about rising inflation?: The impact of the coronavirus pandemic, lockdown and wider economic uncertainty created  deflationary pressures which raise important considerations for the Local Government Pension Scheme writes… dlvr.it/RxF7Fs pic.twitter.com/JlcjROBIpz

    Room151 3 days ago

    JOB ALERT: LPFA Finance Director vacancy: London Pensions Fund Authority Finance Director and s151 Officer Competitive salary and benefits The largest Local Government Pension (LGPS) provider in London with around £6.5 billion of assets and 135[...] dlvr.it/RxBdJP

    Room151 4 days ago

    Richard Harbord: Further signs that local government finance is failing: The crisis in Liverpool and a fix for education budgets are further indication that local government finance is in need of a root and branch review. Even for those students[...] dlvr.it/Rx9PSV pic.twitter.com/sAanC2gEyu

    Room151 1 week ago

    Impact Awards: Finance helps launch school meals company and support business during lockdown: The CCLA/Room151 Impact Awards will showcase the way finance teams have a direct impact on their local communities and the environment. This week we spotlight… dlvr.it/RwnlF4 pic.twitter.com/AJhne1MVG4

    Room151 2 weeks ago

    "This work has made a vital, practical contribution to ensuring people have been supported through the pandemic." #impact #151awards #covid #s151 room151.co.uk/treasury/impac… #impactcasestudies #councilfinancemakesadifference

    Room151 2 weeks ago

    room151.co.uk/impact-awards/ #passiton #localgov #s151 #151awards pic.twitter.com/A0uO0dwBkM

    Room151 2 weeks ago

    Financial pressures loom for 2023 and beyond: Kate Ogden writes the government has addressed most of the short-term Covid-19 financial pressures facing English councils, but problems loom in 2022-23 and the years following. As we enter the[...] dlvr.it/RwfDsz pic.twitter.com/hpv2R09w75

    Room151 2 weeks ago

    Calling all #localgov finance officers and #s151s room151.co.uk/impact-awards/ It's the #151Awards Thanks to the @LGALocalism for helping us get the word out along with all the LA treasury societies. pic.twitter.com/Nkal9BrH1J

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Banks more risky for local authority depositors
  • Next story The hazy world of ethics

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.