City to shed services to help save £92m

Published on Wednesday 3 June 2009 10:00

BIN collections, street sweeping and school meals are among a raft of council services set to be put into the hands of private companies by city leaders as part of a bid to save the local authority millions of pounds.

Officials have today revealed a "long list" of services they have identified as suitable for being outsourced, as they feel they could be provided more effectively and cheaper if put out to tender.

Other council functions that could be affected include customer service areas such as the council's network of local offices, buildings maintenance, IT and the city's council-owned museums and galleries.

The initiative would see companies come in and manage or reorganise council departments, with them splitting the money saved with city leaders.

Other ways of reorganising services, such as setting up arm's-length operating trusts, like Edinburgh Leisure, are also under consideration.

The review has concentrated on back-office functions, rather than core council services, such as teaching and social work.

Edinburgh is following in the footsteps of other local authorities, including Glasgow, which have taken large swathes of their services out of direct control.

City leaders last month revealed they are facing a 92 million black hole in the council finances over the next four years due to tough Government efficiency targets.

It is thought a shortlist of services will be drawn up by August with the first service set to be outsourced by Spring next year.

Privatising services will be fiercely resisted by unions, who have raised fears about the money to be made by private firms.

Council chiefs today insisted the scheme was not about "cutting the quality of service or losing jobs", adding that not-for-profit trusts, and joint ventures with the voluntary sector, will be given equal consideration to ventures with private firms.

City leader Jenny Dawe, said: "We have to look at all options for delivering efficient services in this tough economic climate.

"Alternative service delivery appears to have been successful in other councils and we would be foolish not to explore these avenues further.

"I must stress though that this exercise is not about cutting the quality of service or losing jobs but at looking for alternatives, where available, to provide the standard of service the people of Edinburgh expect.

"We will keep all staff aware of all options being looked at, as I understand that this type of review may cause concern. We will also ensure that trade unions are properly engaged in the process."

As well as looking to outsource frontline services, council chiefs are also considering freezing pay levels and closing more schools as part of a bid to plug its predicted 92m budget shortfall.

The black hole equates to nearly 4 per cent of the city council's budget between 2010 and 2013 and could be met by laying off around 2,000 workers, but the local authority says it is trying to avoid this at all costs through initiatives such as outsourcing.