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CBI calls for wider government adoption of shared services

29 June 2012

Business lobbying organisation the CBI has called on government bodies to shed their reluctance to embrace the benefits of shared service models.

During a speech at the Local Government Association annual conference, CBI director-general John Cridland urged the 134 councils that are yet to share services to "get on with it", extending the same call to many Whitehall departments.

He stated that many benefits can be unlocked by pooling budgets and back-office functions such as HR and finance, while noting the success of an ongoing shared service arrangement in the tri-borough area of Kensington & Chelsea, Westminster and Hammersmith & Fulham.

Earlier this month, three councils revealed that they are on track to save £40 million a year by 2015-16 thanks to their efforts to combine library, adult social care and children's services, as well as their management costs.

Mr Cridland said government bodies should be prepared to be bold in order to reduce needless administrative expenditure, thus freeing up money to spend on service provision.

"Rather than seeing separate NHS, police, probation and housing budgets, let's see more public funding pooled around outcomes - for reducing youth unemployment, for example, or cutting reoffending," he explained.

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Categories: Central Government, Public Sector

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