Latest Public Sector News

16.08.12

Local shared services save £30m for five partnerships

Shared services can save millions and improve business transformation, a report published by the LGA suggests. 

Five local shared service arrangements saved a total of £30m through integration of IT systems, renegotiation of contracts and better procurement. 

The set up and integration costs were described by the LGA as ‘modest’, with all schemes delivering payback within a period of less than two years. Investment costs ranged from 18-59% of savings in the first two years and were typically made up of redundancy payments, implementation team costs, rebranding and IT. 

The five arrangements are: Cambridgeshire and Northamptonshire county councils; Devon and Somerset fire and rescue authority; Herefordshire council, Herefordshire primary care trust and Wye Valley NHS trust; Procurement Lincolnshire; and Vale of White Horse and South Oxfordshire district council. 

Cllr Peter Fleming, chair of the LGA's improvement board, said: “Councils are the most innovative and efficient part of the public sector and this report demonstrates the kind of steps they are taking to save money and improve services. 

“Efficiency savings aren’t enough to make up the 28% cut in the money councils receive from central government, but measures like the shared service arrangements currently in operation at more than 200 local authorities do help to dampen the impact.” 

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