Partner Article

Middlesbrough Council opts against alternative savings delivery model

Middlesbrough Council has decided against taking forward proposals for a joint venture partnership approach for the delivery a number of services within the environment, property and commercial services department.

The Council’s Executive gave the go-ahead in January for exploration of an ‘alternative delivery model’ with the Norfolk County Council-owned Norse.

Overall the Department is required to find savings of £3.6m over the next three financial years.

An initial appraisal reduced the services covered from 27 to 18, including building maintenance, school catering, refuse, recycling and green waste collection, parks management and highways maintenance.

From the outset, the viability of any joint venture was dependent not only on its ability to deliver the required savings but to also offer added value by growing external business to create new jobs and funding streams, while generating profit to reinvest in Council services.

The views of councillors, managers and trade unions were also taken into consideration throughout the process.

However, during negotiations it became clear that under the proposed arrangements, the council would not have sufficient control over the new company and transferred services, and that potential added value could not be guaranteed.

A report to a meeting of the Executive on Tuesday (June 2) will therefore recommend that work on the development of a detailed business case for the joint venture is not taken any further.

Middlesbrough Mayor Dave Budd said: “The Council’s Environment, Property and Commercial services already have a first class reputation for the delivery of high quality services, while at the same time continuing to meet the challenging savings required of them.

“The decision was taken to explore an alternative delivery model to see if we could further develop their commercial potential, both to protect and create jobs and to bring in new income streams to support other Council services.

“After detailed discussions with a potential partner, we now believe such an arrangement would not achieve the added value originally envisaged.

“We are therefore proposing to continue to deliver these services in house with the existing dedicated and skilled team.”

The recommendation to cease exploration of the alternative delivery model will be considered at a meeting of the Council’s Executive on Tuesday, June 2.

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