Cross-county outsource deal agreed

Deal being finalised

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Two East Midland districts are close to setting up what they claim is the first cross-county shared services outsourcing.

Charnwood BC, in Leicestershire, has agreed to the deal with its Nottinghamshire neighbour Rushcliffe BC and outsourcing contractor Liberata. Rushcliffe's cabinet is expected to approve the agreement early next month.

The partnership is set to include benefits and revenues, information technology, finance and human resources.

Liberata beat off competition from Capita in the final shortlist, having earlier also been up against HBS and Vertex.

The company is due within two years to house the services in a new business centre at a 'neutral' location between the councils' bases at Loughborough and West Bridgford.

It must maintain access to front-line services in the two towns and a "mutually beneficial and agreeable travel to work area for all staff".

The two councils said earlier this year that this building would become "a centre of excellence which will offer councils and other organisations well-trained staff in skills shortage areas in local government".

Staff will be covered by Transfer of Undertakings Protection of Employment Regulations, and Liberata will "enhance the development of our employees within an environment of best employment practices", the councils said.

Liberata must also ensure that all services are in the upper quartile of performance within three years of the contract's start.

Both councils remained tight-lipped about the deal's finances, though an earlier Charnwood report anticipated savings of £740,000 in the contract's second and third years, and a concordat signed earlier this year committed them to achieve a minimum 10% annual saving.

Charnwood leader Richard Shepherd (Con) said the deal would save "millions of pounds" for taxpayers.

Rushcliffe's deputy chief executive Colin Bullet expected other councils would eventually join.

When Rushcliffe advertised for a contractor in 2006 it also had as partners Gedling BC, Mansfield, Derbyshire Dales and South Derbyshire DCs and the Peak District National Park Authority.

"I understand they all still maintain a watching brief, and certainly our intention is that others can join," Mr Bullet said.