Study claims shared service will bring savings

06 December 2006

Two councils in Northumberland are likely to set up an integrated streetscene service, in order to deliver savings of up to £500,000 a year.
Blyth Valley and Wansbeck councils will decide on Thursday whether to merge their existing streetscene departments to create a single organisation to cater for both districts. A feasibility study by KPMG, commissioned by the two councils, estimates the partnership could save Blyth and Wansbeck £302,000 and £198,000 a year respectively.
Savings and improved productivity levels could be achieved through a reduction in management posts, joint procurement, rationalisation of depots and workshops capacity, and better use of equipment.
The move could also add ‘further credibility’ for the creation of South East Northumberland, with more efficient services key to rural authorities gaining unitary status (Surveyor, 30 November 2006).
Without the creation of a unified service, the two councils will come under increasing pressure to market test their services against the private sector, the report argues. It identifies a non-profit distributing organisation as the preferred option to deliver the joint service.

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