City council pledges new service agreement will deliver £43m saving
Birmingham City Council and joint service provider Capita have agreed a new and more flexible four-year partnership plan that could deliver the local authority a saving of £43m by 2020/21.
The proposal, due to go to the council’s Cabinet on Tuesday (June 27), keeps the core services contract in place until 2021 and is focused on implementing the council’s ICT & Digital strategy 2016-2021.
The council said this would meet the needs of modern public services and enable residents, businesses and other partners to be better connected across multiple channels.
The intention is to keep the core services contract in place until March 2021 and allows for the joint venture arrangement, which has some commercial restrictions, to be dissolved.
The new partnership will deliver a mix of core services currently provided under Service Birmingham as well as additional project-based work enabling additional savings to be delivered over the next four years, helping the council to meet its objectives.
Both Capita and the council said they recognised that greater flexibility was needed to implement the council’s ICT and Digital Strategy.
The proposed new scheme enables Capita to continue supporting the council in the delivery of ICT savings, whilst also allowing the joint delivery of innovative solutions that support the council’s future business models.
The savings for the current year (2017/18) are projected to be £10m, accumulating to £43m by 2020/21 – as outlined in the council’s budget in March.
Cllr Ian Ward, deputy leader of the city council, said: “As is widely known, the shape and objectives of the council are changing due a wide range of factors including reduced funding for local government, changes in population profile and an ever-altering technological landscape.
“Our ICT and Digital service needs to support and lead in achieving those objectives, whilst providing flexibility, added value and having the ability to continue delivering a ‘day-to-day’ service whilst making this transition.
“This deal will see the council gradually take more control of its ICT & Digital strategy over the next four years with Capita and the council working together. Through these negotiations we have been able to secure the savings we need to protect frontline services and start the ball rolling on the process that will enable us to meet the challenges of the future.”
