The councils’ cabinets have approved the preparation of a business case for sharing back-office services, but will not bring in a private sector partner. The arrangement will cover internal audit and payroll, as well as exchequer services for the counties’ pension funds.
The two councils have a target of£1.6m of cashable savings annually, according to papers presented to Leicestershire’s cabinet.
Chris Tambini, Leicestershire’s deputy head of strategic finance, said the councils would be able to share his authority’s Oracle IT system.
A report presented to Leicestershire’s cabinet said that outsourcing finance and HR carried “a high level of risk” because fluctuating demand for such services would be hard to pin down within a contract.