Mark Conrad 17 June 2011

Pickles: councils should join forces to save £10bn

Councils could save £10bn a year if they improve the way they source and buy goods and services, a Whitehall-endorsed report has suggested.

A study by analytics experts Opera Solutions, released by the Department for Communities and Local Government on 17 June, suggests there is still a long way to go before local authorities could claim they have maximised their collective spending power.

Councils collectively procure around £50bn worth of services annually, and ministers claim the potential savings identified by Opera Solutions amount to around £452 annually for every household.

Using data recently published by councils under the CLG’s spending transparency initiative, Opera Solutions suggest that neighbouring councils could join forces to procure local goods and services more efficiently.

In one example, Opera looked at spending on energy, mobile phones and legal services across three neighbouring councils. The total bill for the three services was £13.6m.

But Opera estimated that by consolidating their spending to boost their buying power, the councils could have saved £1.4m – or 10% of their spending.

By replicating these savings across a range of administrative and procurement functions councils could save up to £10bn of their procurement bill – a 20% reduction – with little impact on frontline services.

Local government secretary Eric Pickles said: ‘Let there be no doubt whatsoever – today’s figures show that there is significant scope for councils to make taxpayers’ money work even harder.’

Ray Eitel-Porter, executive director of Opera Solutions, said the report identifies ways to deliver ‘ongoing savings’ that ‘can be redirected to critical programmes and services’.

SIGN UP
For your free daily news bulletin
Highways jobs

District Youth & Community Worker - Hospital Project

Essex County Council
£31885.0000 - £34708.0000 per annum
District Youth & Community Worker - Hospital ProjectFixed Term, Full Time£31,885 to £34,708 per annumLocation
Recuriter: Essex County Council

Educational Psychologist

North Yorkshire Council
£49,215 - £65,423
This is an exciting time within North Yorkshire Council’s Educational Psychology service. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Educational Psychologist

North Yorkshire Council
£49,215 - £65,423
This is an exciting time within North Yorkshire Council’s Educational Psychology service. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Dredger Chief Mate

North Yorkshire Council
£29,064 – £31,537 per annum
The vessel operates in the ports of Whitby and Scarborough and occasionally operates on contract to dredge other ports around the UK coast. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker Disabled Children's Team

North Yorkshire Council
£38,220 - £42,839 per annum
Do you want to be part of a service that is passionate about improving the lives of disabled children and their families? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner