Austin Macauley 20 January 2016

Bournemouth reveals plan to bring outsourced services back in house

Bournemouth Council is set to bring a £14m outsourced contract to supply a range of back office functions back in house as it grapples with 'unprecedented financial challenges'.

The local authority is facing a 29.8% cut in its revenue support grant for next year and an additional 36.8% cut the year after.

The council currently has a contract with Kier for HR, finance, revenue and benefits, facilities management and IT.

Council leader John Beasley said the council had done well to deal with financial challenges to date but 'has no choice but to look further and deeper into its departmental budgets, to do all that it can to protect frontline services'.

He added: 'In this increasingly difficult financial environment, it is apparent that the council needs to control directly the annual £14m spend currently associated with the delivery of services within the Kier partnership contract, so that we can make further changes without the need for more complex contractual negotiations.

'Given the current financial position and the case for local government change in Dorset being developed, the council has chosen to fully review the provision of services within the Kier (formerly Mouchel) partnership contract. The result of this review is a recommendation to cabinet that, during 2016, the council brings all services delivered by Kier as part of the partnership, back in-house.'

Craig Apsey, Kier Business Services managing director explained: 'The partnership has been incredibly successful over the past five years, delivering over £10m in operational savings since 2010 (more than was expected or defined in the original contract), major service improvements, and helping to create over 175 new local jobs with an economic value of £13.4m. This is in addition to wider initiatives like the £4m invested in the Carbon Management Centre, reducing council emissions by 26% and the launch of a new Apprenticeship Company, which aims to support 125 apprenticeships by September 2016.

'However, the landscape for local authorities has changed substantially over the past five years, with severe and repeated government budget cuts, and radical cuts to the revenue support grant in parallel with the opportunity to form a new devolved combined authority. All of which means that the council may now need services to return to their direct control in order to navigate this change.

'The partnership was originally designed to provide this kind of flexibility to accommodate a changing landscape and client needs, and if the decision is agreed at cabinet next week we will work with the council to support our teams as they transition back to council employment, and will do all we can to maintain service levels and ensure a smooth and successful transfer of services.'

SIGN UP
For your free daily news bulletin
Highways jobs

Interim Director of Adult Social Services

Tile Hill
Negotiable day rate
We are currently supporting our local authority client in their search for an interim DASS South East England
Recuriter: Tile Hill

Communications and Engagement Officer

Royal Borough of Greenwich
£38385 - £41586 per annum
Communications and Engagement Officer - Internal Communications£38,385 to £41,586 (annual pay award pending)Permanent / full-timeWe're looking for an England, London
Recuriter: Royal Borough of Greenwich

Assistant Director (IT and Digital)

Calderdale Metropolitan Borough Council
£95,277
Our Vision 2024 is centred round Calderdale as the place. Halifax, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

Project Search Employment Coach

Sandwell Metropolitan Borough Council
£25,419-£30,095
The Project Search Employment Coach will provide daily job coaching support to interns. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Project Search Employment Coach

Sandwell Metropolitan Borough Council
£25,419-£30,095
The Project Search Employment Coach will provide daily job coaching support. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.