Councils look to save £3 million through new purchasing plans

23 March 2015

Two councils in Derbyshire and Staffordshire that have joined forces in a Strategic Alliance are planning to save £3 million between them on their purchasing arrangements, following a partnership with Northgate Public Services (“NPS”) to modernise their procurement activities.

Staffordshire Moorlands District Council (SMDC) and High Peak Borough Council (HPBC), have already saved a total of £620,000 a year and with NPS help, expect to save £3m over the next 30 months in procurement alone. The Alliance is also looking at potential savings, as identified by NPS, which could add up to further substantial savings and efficiencies.

The Strategic Alliance has embarked on a corporate-wide Transformation Programme, including a series of Service Reviews across most areas of the Councils. This follows a ‘high level’ review of service areas by NPS and a period of significant restructuring.

This included a successful programme of improvement with High Peak's housing service which saw substantial improvements in repairs, lettings and rent collection, leading to a 100% improvement in productivity.

NPS has since recommended further improvements across the Alliance’s wider services, which will benefit most of the councils’ service areas.

Andrew Stokes, Executive Director and Chief Finance Officer at the two councils, said:  “Northgate Public Services’ considerable experience in providing transformational programmes for local authorities made the company first choice for The Alliance to help us deliver this programme. NPS is very confident that our residents will benefit from the significant service improvements we make and, in line with their commercial model, the company has committed to put its fees at risk if efficiencies are not achieved. It’s a win, win for both of us.”

Sue Holloway, Northgate Public Services Director, Services Strategy, added: “We are delighted to expand our work with The Alliance. Our Transformation Team has been able to provide expert practical guidance and direct support to the organisation. With our knowledge and expertise, our transformation specialists can deliver financial, quality and organisational improvements quickly. Our model also ensures that the improvements we make are sustainable. Taken as a whole, our Transformation Team has already delivered savings in excess of £220 million across the UK.”