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

Caretaker

Durham County Council
£24,796 (Pro Rata)
Permanent Contract – Part Time - 32 Hours per week (6am – 9.15am 3pm – 5.45pm) Mon-Fri. Whole Time. Required to start 20th October 2026.   The Governo Consett
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 – Pre-Progression (£35,412-£39,152 per annum) / Grade 11 – Post Progression (£40,777-£45,091 per annum). Pay award pending.
We are seeking to recruit two temporary (six month) full-time (37 hours per week) Social Workers, to join our Adult Social Work Team at Derwentside Lo Durham
Recuriter: Durham County Council

Head of Finance - Children & Young People’s Service

Rotherham Metropolitan Borough Council
£75,585 - £80,726 (pay award pending)
This is a great place to work for people who want to make a real difference. Riverside House, Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

Head of Finance and Accountancy (Deputy S151 Officer)

Chesterfield Borough Council
£72,000 (inclusive of Market Supplement)
In this role, you will provide visible leadership and management across the Finance Service Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council

Director of Digital, HR & Customer Services

Chesterfield Borough Council
£97,017
Reporting directly to the Deputy Chief Executive, you will lead a diverse directorate, with responsibility for Human Resources Chesterfield, Derbyshire
Recuriter: Chesterfield Borough Council
Linkedin Banner