Councils 'must consider sharing services'
Tue 20 Sep 2011
Shared services have been put forward as a strategy that should be considered by local authorities.
Keith Wakefield, leader of Leeds City Council, warned of the implications of "severe" budget cuts in the next few years.
He suggested that local authorities will need to think about how they can work together to administer services in the future.
Mr Wakefield cited the "unprecedented financial challenges" currently hitting councils, as well as the "pressures" that have come about due to demographic changes.
The councillor suggested that "creative new ways" of working must be implemented to ensure "quality service delivery" and to stimulate economic growth.
Mr Wakefield called on authorities to bring "the best of all sectors" together to facilitate their effective running in the future.
Simon Randall, a consultant at Winckworth Sherwood Solicitors, commented: "Sharing local authority services is a win-win opportunity for residents and local taxpayers alike.
"There is the prospect of an improved quality of service through the adoption of the best practice from each participating authority and creating a more efficient and effective service at reduced cost.
"In addition, any spare capacity can be better utilised by the authorities concerned. There are a number of issues which will need to be considered including governance of the arrangements, cost-sharing and premises.
"However we are working with a number of authorities and where there are clear aspirations success is assured."
His comments follow a report from K2 Advisory, which indicated that there was "no rush" from public sector organisations to achieve cost savings by outsourcing to private sector companies.
For further information on any of the points raised in this article please contact Joanna Bussell in our Local Government Team.




