A ‘MARRIAGE of convenience’ could see a merger of back-office services at Tory-controlled Cheshire West and Chester Council and Labour-led Wirral Council to deliver cash savings.
CWaC is considering sharing the delivery of around £69m worth of services with neighbouring Wirral Council in a move that would inevitably lead to more job losses.
And the two authorities will discuss plans to merge delivery of all corporate functions ranging from finance and human resources to information technology and legal services.
CWaC leader Cllr Mike Jones said: “In this respect, the political leadership of the two councils is irrelevant. If this way forward is agreed, we will be working together to deliver services which are in the best interests of all our residents.
“A strong, efficient, value-for-money ‘back office’ will obviously benefit the provision of front-line services for our tax-payers in Wirral and West Cheshire at a time when all local authorities are under pressures to finance that provision.”
Both councils will consider recommendations to explore proposals with the medium term objective of establishing a fully merged shared corporate service over the next two to three years, serving 700,000 people.
It is felt that reducing duplication, bureaucracy and waste and making the most of economies of scale and increased efficiency, will create ‘considerable’ cash savings for both authorities.
CWaC and Wirral have already begun to share management of procurement services and are scheduled to discuss plans for a collaborative procurement unit.
If the corporate services merger is agreed, it is suggested the local authorities could extend their partnership to further areas like community budgets, public health and economic development and prosperity.
CWaC Labour opposition leader Cllr Justin Madders said: “We are set for another 10% cut in local government funding so we have to look at all these arrangements to save money. It is preferable to save money in this way rather than take it from the front line.”
However, he wonders why an outline business case to work more closely with the neighbouring Cheshire East Council was not pursued and how much was spent investigating that option.
He also has concerns about where the headquarters building would be based if corporate functions merge.
“Presumably savings would have to be made through shared accommodation. We would have to think carefully about where the headquarters building was located for the maximum regeneration benefit,” he added.
Cllr Madders would also be concerned to ensure clear lines of democratic accountability were maintained over the enlarged corporate entity covering two geographical areas.
Formed in 2009 as a result of local government reorganisation, CWaC already shares services with Cheshire East, Halton and Warrington Borough Councils and Shropshire Council.
The proposed shared service would be covered by legal agreement, eventually operate under company or mutual structures and have the potential to provide services for other councils.
It is proposed that governance of the new organisation would be by a joint committee of members with full delegated executive/cabinet powers supported by a joint board of officers.
If members back the proposal, the two councils will submit a joint bid for funding under the government’s Transformation Challenge Award which will provide cash to local authorities radically overhauling how they do business.
Cheshire West’s executive will discuss the proposal on July 10 and Wirral Council’s cabinet, a day later. If both agree a detailed plan and timetable for saving, delivery will be ready by October.
