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

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Saffron Centre for Young Musicians Support Assistant

Essex County Council
Up to £25081.00 per annum
Saffron Centre for Young Musicians Support AssistantPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Content Designer

Barnet London Borough Council
Grade J £48,003 - £53,172
This is an exciting time to join Barnet as we grow our Digital, Data and Technology (DDaT) capabilities London (Greater)
Recuriter: Barnet London Borough Council
Linkedin Banner