Civica reacts to plan to merge three councils in London

The London boroughs of Hammersmith and Fulham, Kensington and Chelsea and Westminster have announced plans to merge their services to save between £50 million and £100 million a year.

The plans would see each authority keep its council leaders and local ward councillors.

David Roots, managing director, Civica commented:

“It wasn’t that long ago that shared services between councils was an option adopted only by the brave – radical thinkers determined to remove the barriers defended by the parochial. The establishment of unitary authorities seemed to be the only way in which the shared services agenda would be delivered in substantial form, as opposed to the creditable but limited scope of common corporate systems. Then came the Total Place initiative, surrounded by the usual scepticism but supported in principle, if not in name, by the new Government.

“The latest announcement from Hammersmith and Fulham, Kensington and Chelsea and Westminster should, perhaps, be seen as a watershed. Three large councils determining that they will pursue a broad shared services agenda whilst retaining political autonomy for each. Targeting transformation of family and environmental services delivery, in addition to corporate functions, sends a clear message that what was previously off limits is now very much in scope.”

He continued:

“This creates a real opportunity for addressing flexible working, channel migration, re-engineering of processes and delivery of personalised services. The savings of £50-100m suggested can be delivered if private sector expertise is brought to the table in a selective manner; not through wholesale outsourcing but through developing a shared responsibilities approach with partners who can demonstrate expertise in the targeted areas – and who are prepared to put their money where their mouths are to deliver agreed outcomes.

“The focus on ‘fairness’ in the public debate taking place in the immediate aftermath of the CSR is very understandable; however, the fact is that the sooner local authorities initiate and implement real transformational change, the sooner savings can be made and the greater the opportunity to protect the quality of services and the citizens they serve.”