William Eichler 09 June 2016

Shared finance system to save councils millions

Shared finance system to save councils millions image

Two London authorities have agreed to share a finance system in a move projected to save £6.8m.

Richmond and Wandsworth councils have signed a six-year contract to jointly appoint Capita Local Government to provide a new joint finance system and a range of transactional services.

The two authorities are now in the process of forming a shared workforce with a single chief executive to serve both boroughs. This is expected to deliver savings of around £10m a year for each council.

The contract also establishes a pan-London framework that will allow other councils to use the Wandsworth and Richmond managed service solution, which could lead to greater savings in the years ahead.

Cllr Geoffrey Samuel, Richmond Council deputy leader and cabinet member for finance, said: ‘I am delighted to welcome yet another example of the determination of this council to save money through back office efficiencies.

‘In controlling our finances we aim to secure for our residents the service provider who best offers a combination of quality and price. This is what we have achieved.’

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