has been broadly welcomed by the Society of IT Management (SOCITM) but
some of the proposals could result in higher costs for services SOCITM
Councils that excel will be given powers to provide services to other
councils. This will allow the public authorities to compete with the
private sector and deliver 'best value' services. However the history of
this type of authority to authority working has not been good. Legal,
operational and financial wrangles have dogged such schemes in the past.
The proposal to legislate to outlaw situations where private firms pay new
staff lower rates than those transferred under TUPE is likely to be more
controversial. Areas of work such as social care, school cleaning and
waste collection could become more expensive. This will mean that less
money will be available for other priorities. Private companies will argue
that they pay the market rate for the job.
In some of the professional areas such as IT, finance and law the pay
differential is the other way. Will the legislation outlaw this too, if it
does then the cost of professional services could rise. This may also have
a knock on effect in all councils.
* for full details see LGCnet.