Birmingham City Council’s cabinet member for finance has written to more than 900 council suppliers to discuss whether there are areas where savings can be made.
Councillor Randal Brew said: “Following the Government’s comprehensive spending review I decided to contact our suppliers to see if we could discuss how much the council – and therefore the taxpayer – pays for goods and services and whether there is scope for savings to be made through reducing either costs or inefficiencies.
“Local authorities are now facing reductions in expenditure of around 25 per cent. This will obviously have a major impact on the services we provide for local people.
“A major element of our cost structure is what we pay to suppliers for goods and services used in delivering services. Therefore, reviewing our procurement costs is just one of many areas we need to look at in order to see how best we can protect front-line services for the people of Birmingham.
“Whilst I realise it is a difficult request I think it is reasonable to have that discussion in the context of the level of savings required elsewhere in the public sector and would therefore welcome any ideas our suppliers may have. I believe we all need to work together to protect the present and future interests of Birmingham and its citizens.
“I have had many positive responses from suppliers keen to explore ways they can work with us.”

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