Council pulls out of "cash-saving" scheme (From Bucks Free Press)

Council pulls out of "cash-saving" scheme

1:35pm Friday 3rd October 2008

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A COUNCIL has pulled out of a much-vaunted scheme aimed at slashing council tax by sharing back office staff between authorities.

Chiltern District Council withdrew from part of the Pathfinder project at the 11th hour with a warning that the risks involved were too high.

Four district councils, Buckinghamshire County Council and a fire authority have joined forces to share some services to try and save about £20m.

But Chiltern District Council will not be part of the “shared services” plan, one of five schemes aimed avoiding “duplication, confusion and cost”.

The shared services element would see departments such as property, finance, HR and IT merge to serve all six authorities.

It comes as the county council – which gets the lions share of the council tax – warns of a “black hole” in its finances which must be plugged by Pathfinder.

County boss David Shakespeare said the plan was vital “to find those savings that our council tax payers need if they are going to keep all of the services they have got now”.

But Chiltern District Council leader Councillor John Warder said: “The risks involved are very much greater than the rewards that seem likely.”

He said: “We don’t know what the total cost is going to be, we don’t know what the benefit will be. We are asked to take this on trust.”

The small size of the council meant it was one of the “most efficient” of the groups he said.

Cllr Warder said: “The evidence we have is that many of the financial benefits are over-rated, particularly in the long run.”

The withdrawal was “unfortunate but not crucial” said county council leader Cllr David Shakespeare, as Chiltern made up just three per cent of the work.

Yet he urged other authorities to push ahead with the plan. The county faced a £7m “black hole” he warned – and this could rise to £27m by 2012.

Pathfinder was looking at “how we can drive down those costs from the council tax payer” he said.

He said: “Every single year the costs of running our services go up by more than the increase in income we get.

“It is absolutely vital that we find new ways of financing and doing our business.”

The county gets £1,018 from the average band D council tax service as it manages costly and complex services such as schools, social services and roads.

Cllr Shakespeare added: “There is no way trying to find savings on the paperclips is going to find £27m.”

He said of CDC: “They could not see any savings in the project for them and it was their decision they wouldn’t become a partner.”

He added: “It is a good thing that Chiltern were very honest and open for that.”

Pathfinder had already taken up a “fair bit of money” he said. This is thought to be about £400,000.

The councils which are pressing ahead with the shared services plan agreed to form a private company which see about 600 staff transfer into it and be “sold” back to the authorities.

It is hoped Pathfinder will save between 10 and 20 per cent of all authorities’ budgets of about £400m.

Other authorities signed up include Buckinghamshire Fire and Rescue Service and Wycombe District, South Bucks and Aylesbury Vale district councils.

Other Pathfinder schemes include waste management, how authorities buy outside services and customer services.

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