The Vale of White Horse district council is investigating if expanding one of their service delivery contracts could save the councils millions of pounds whist ensuring good quality services are delivered to residents.
Continuing major long-term reductions in government funding mean many local councils across the country may very soon face financial crises.
Thanks to their innovative shared-working approach, Vale of White Horse District Council together with South Oxfordshire are both in a much better financial position than most councils right now. This gives the two councils more time than many others to address the funding shortfall all will eventually be facing – but rather than waiting to see what might happen in the future and having to react suddenly, they’re addressing the issue carefully now.
They are shortly about to start testing the market to see if any external providers will be willing and able to provide a range of back office and administrative functions more efficiently, more cheaply and/or at higher quality standards.
They’re also investigating the option of expanding the contract to include other councils, meaning even greater economies of scale and savings.
The other councils currently involved are Hart, Havant and Mendip, all of whom are assessing the merits of joining South and Vale in a single contract process.
The Vale already has an excellent track record of using external providers for some of their services, including customer-facing ones. Their shared Revenues and Benefits department, which collects council tax payments and administers the housing and council tax benefits service, has been provided externally for over 8 years. Over that time, the performance levels of the department have increased significantly, yet the contract has already saved the taxpayer £4.36 million. It is this contract that the councils are looking to expand when it expires in July 2016.
The councils have appointed an experienced consultant to question their approach at every step, and to help them make sure the procurement process for the new contract secures the very best deal possible.
In modest estimates, the council expects to make additional savings of at least £2.5 million over a ten year period.
Cllr Matthew Barber, leader of the Vale of White Horse District Council, said: “Over the past few years, our shared working with South Oxfordshire has significantly improved the financial stability of the Vale. We can’t undo that good work by resting on our laurels – some authorities have their heads in the sand over their financial situations – we’d rather face up to future challenges and deal with them properly.”