Council tenders services to private firms

The City of Edinburgh Council is exploring alternative ways of providing its services, by inviting companies to express an interest in working with the council, in a bid to cut costs.

The move has been prompted by the unprecedented financial challenge facing the public sector.

Council leader Jenny Dawe  said: "The financial situation facing the Council is unparalleled. We must, however, continue to provide maximum value for taxpayers' money while delivering the quality frontline services that residents expect.

“Therefore, we have to transform customer service and secure real, lasting efficiencies to free up funding for our key priorities of education, social care and economic development.”

Despite making £68 million in efficiency savings over the last three years, a further £90 million needs to be found, in the face of increasing demand for services that the Council provides, especially for vulnerable people.

The controversial tendering process has already attracted attention in the attempted tendering of social care to private companies at the end of last year.

In November, the council infuriated disabled service users when it suspended direct payments whilst retendering for the contracts. However, the Liberal Democrat council was defeated and the retendering process was eventually overturned, after criticism in an independent report.

Councillor Lesley Hinds of the Scottish Labour Party, wrote on her blog: “Over the past year, Labour Councillors have consistently questioned the need for this contract to go out to tender. We have questioned both the process and the outcome.

“We have listened to the users' groups and worked with them to ensure their voice has been heard in the Council. But I have to question what the Liberal Democratic and SNP Councillors have been doing.”

These current discussions with private companies cover corporate and transactional services, integrated facilities management and environmental services.

These are the areas identified as having the potential for savings and service improvements. All options for how these services might be delivered in the future will be considered.

According to a council spokesperson, alternate models of service delivery will only be considered if they will deliver a change in performance, compared to the current approach, and are in the best interests of the city.

Cllr Dawe noted: "It is still very early in the process and proposals would only be progressed if a strong business case is demonstrated. We remain committed to working constructively with the trade unions and staff to explore, evaluate and inform all options. Any final decisions will require Council approval."