Savings of more than £36million were achieved by Birmingham City Council last year thanks to the negotiation of contracts offering better value for taxpayer money.
The figure is almost eight times as much as the saving gained from improved deals during 2008/09 (£4.555million) and comes at a time when public finances are tightening across the board.
The bulk of this year’s total came through a new contract for housing repair, maintenance and gas servicing – £30.9million cheaper than the previous deal.
Other deals that were struck in 2009/10 included a three-year contract for the supply of stationary, paper and electrical equipment, developed in collaboration with other local authorities, which will save Birmingham £1.5million alone.
A contract for the provision of groceries and catering equipment was also signed that will achieve savings of £1million over its three-year duration.
Cllr Paul Tilsley, Deputy Leader of Birmingham City Council, said: “It is vital that all public bodies use the funds that they receive from taxpayers as effectively as possible – and this is of particular significance when times are tough such as they are now.
“As a council, we have made a concerted effort to refine our procurement processes to extract the maximum value from any contracts we sign, not only in terms of our bottom line but the benefit the deal will gain for the wider community and economy.
“The savings and benefits that can be gained are huge – in the last year we have proven that. Through our Corporate Procurements Services team, we will continue to leave no stone unturned to ensure that this continues to be the case in years to come.”
ENDS
For further information contact Kris Kowalewski on 0121 303 3621
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Christine,
Thanks for the feedback – we must point out that headcount at the council was reduced by approximately 1,000 funded posts last year.
This isn’t the same as redundancy because it includes voluntary/early retirement and the deletion of posts that were already vacant.
It also has to be put in the context of a workforce of more than 50,000 people – which clearly isn’t “50 per cent of the workforce” as stated.
not such a great saving when 50% of the workforce is now redundant.
shame on you