The challenge

South Oxfordshire DC and Vale of White Horse DC agreed in July 2005 to work together to find alternative ways of service delivery and cost reduction though collaboration. The Councils are neighbouring, and while they do not have the same political control, they both share a common goal of improving efficiency and received strong commitment for the new arrangements from senior management and politicians. Following a best practice review, it was determined that joint procurement for combined services would be the most cost effective solution. With Capita’s expertise in council tax and business rate collection and benefit administration, the Councils engaged in discussion and following a rigorous procurement process, the contract was signed in May 2006. The contract is part of an innovative shared service agreement between the Councils which includes joint provision of in-house services like accountancy and benefit fraud, as well as the joint contract with Capita to provide the revenues, benefits and payment services.

The solution

The contract is in the initial stages and it includes implementing and managing new IT systems, including Capita’s Academy Council Tax and Housing Benefits applications, financial services and payroll applications. It also includes the processing of back office functions and transferring telephone enquiries to Capita’s shared service centres where cost savings will be achieved because of economies of scale. Around 38 Vale employees have been affected by the deal and have transferred to Capita with all their existing terms and conditions. The majority of staff will continue to be based in Abingdon working for Capita. South Oxfordshire had already contracted out its services to a previous supplier, Liberata, and these staff will now transfer to Capita.

The outcome

The new arrangement provides both Councils with additional resilience and flexibility. The Councils will also secure financial savings of about £3million over the length of the contract, with additional benefits of a modern IT infrastructure. For district councils in particular, this represents a significant saving. The contract is tied closely to financial incentives and penalties to recognise the link to agreed performance measures.

This move will save the council tax payers in the Vale and across the south of the county millions of pounds while at the same time providing a very high level of service. There will still be staff based here dealing with customers direct, while phone enquiries and processing will be provided elsewhere at a cheaper cost.

Cllr Mary de Vere, Executive Member with Portfolio responsibility for Benefits Vale of White Horse District Council

We have created a model that we can use again with other services to achieve economies of scale. The Vale is a natural partner for us, but our approach is already attracting attention from other councils and the Government. It is one they should embrace.

Rodney Mann, Cabinet Member for Finance, South Oxfordshire District Council