Cheshire East and Cheshire West Councils have launched a new company with the aim of saving millions of pounds for Cheshire's council taxpayers.
CoSocius Ltd will deliver essential business services to both local authorities and market services to outside organisations.
The contracts of over 300 members of council staff will be transferred from East and West – formerly working in Cheshire Shared Services providing payroll, payments and IT functions – from May 1st.
This will allow the company to sell services and solutions to other local authorities to reduce the running costs for both Cheshire West and Cheshire East.
Sharing services over the past five years has already saved council taxpayers in East and West Cheshire in the region of £18m and once established the company is expected to generate savings in excess of £5m after the first five years, rising to £1.6m annually.
Board Member Councillor David Brown, Deputy Leader of Cheshire East Council said: "The purpose of forming these companies is to ensure that productivity is increased and will attract further customers and/or partners to provide the best service for our local residents and businesses."
Fellow Board Member Councillor Les Ford, Deputy Leader of Cheshire West and Chester Council, said: "CoSocius will need to deliver value to both councils, as its shareholders and ultimately, of course, to the public.
"We are seeking to create an innovative, sustainable and highly competitive business able to trade profitably with other organisations, in addition to providing council services."
Councillor Ford added "CoSocius will play its part in an ongoing process designed to cut costs by eliminating waste and improving efficiency – a process which has enabled this authority to save £133m in five years."
Both Deputy Leaders, together with Mike Suarez, Chief Executive of Cheshire East and Julie Gill, CWAC Director of Resources, will serve on a transitional board to oversee the crucial opening stage of the company's operations. An independent chairman will be appointed at a later stage.
Cheshire East Council has also launched arm's length companies to run key Council services. Waste and streetscene services will in future be operated by a company called Ansa, while bereavement services will be managed by Orbitas. Both are wholly-owned by Cheshire East, but will be run on a day-to-day basis by their own boards and managements.
Council Leader Michael Jones explained: "We're taking the financial challenge head-on. We're working with trade unions and staff to provide a new way of running a council, unleashing innovation and entrepreneurialism, managing costs and improving our offer to customers and service users.
"In future, no two councils will look exactly the same and seeking out new, innovative ways of providing services is now an essential feature of local government."
He added: "Rather than moan and complain about budgets going down, councils need to innovate.
"This is certainly our view as we embark on our Cheshire East revolution – putting residents' first", he said.
Last year, Cheshire East Council also established a development company, East Cheshire Engine of the North, to maximise value from the council's land and property estate.
Next month, the Council's leisure services will relaunch as an independent trust called 'Everybody Sport and Recreation Ltd'. Then in July the Council is planning to launch a new ASDV covering its public transport responsibilities.
Comments
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I find it incredible that a large apartment in Chelsea, London will only pay £1400 a year council tax whilst we in a two bedroomed apartment in Alderley pay £1800 a year.
How can that be? Perhaps somebody from the council can explain such costs.
I think reason why Chelsea is cheaper for Council Tax payers is that there are less "Non payers" for the region, therefore our higher cost are there to subsidise households that doesn't pay council tax in Cheshire East.
Britain seems to be more communists than Russia and China these day!
If this is all as wonderful as they say, would they like to explain it properly now before it turns into a Lyme Green affair and we all have to fight for the right to see the whole picture - which will, of course, be refused to the many in order to protect the few.