Admin merger to save councils millions of pounds

Two councils in the East Midlands have decided to combine their administration services in a move intended to save them £1m each annually.

The Labour-run Nottingham City Council is combining its payroll and human resources with the Conservative-run Leicestershire County Council.

Leicestershire's county council leader David Parsons said the merger will "drive down costs".

But the move will result in the loss of 70 jobs across the two authorities.

Leicestershire County Council's Liberal Democrat leader Simon Galton said he supported the move but added it will not solve all the county's financial problems.

'Not enough'

A Leicestershire report on the collaboration said it would require "sharing of knowledge and best practice" and investment in more efficient management systems.

The changes are expected to cost the two councils a total of £7.3m to implement.

Mr Galton said the county needed to find cuts of £86m over the next four years and the move to cut costs by merging some services will not be enough.

"We are all in favour and will stand by and support him. But in the end it won't deliver.

"It won't be enough, there will still have to be more cuts," he said.

Mr Parsons said: "There are other East Midland councils that we have got to co-operate in order to drive down costs all the time and keep the council tax down."

The project is expected to start next month.