A senior Cabinet minister today called on councils across London to merge to save taxpayers hundreds of millions of pounds.
Eric Pickles wants others to follow the example of Hammersmith and Fulham, Kensington & Chelsea and Westminster councils, which have formed a “tri-borough” agreement, saving tens of millions every year.
Mr Pickles said that if every borough in London followed their example, taxpayers would be £400 million better off. The Secretary of State for Communities and Local Government added that as much as £2 billion could be saved if the scheme were to be rolled out nationally.
Under the tri-borough agreement, the three councils are sharing £300 million of services, cutting management costs by shedding 175 senior posts.
Kensington & Chelsea and Hammersmith and Fulham also share a chief executive. The councils today said they are on track to save £40 million thanks to the partnership, which started last year.
Mr Pickles today said that “no council should even contemplate cutting services before they have considered following this example”.
He added: “The success of the tri-borough approach is testament to the innovation and forward thinking of Westminster, Hammersmith and Fulham and Kensington & Chelsea.
“Its councillors and officers are my London 2012 heroes for making such creative savings to protect frontline services, all while keeping council tax bills down, helping families and pensioners with their cost of living.”
Mr Pickles said: “No council should even contemplate cutting services before they have considered following this example of how to join forces with neighbours to share back-office services, procure better, slash in-house management and cut overhead costs.
"Potentially £400 million of taxpayers’ money could be saved in London if other councils were able to copy such sensible savings.”
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Nicholas Botterill, the new leader of Hammersmith and Fulham council, said: “A year ago our plans were seen as radical, now they are seen as commonsense. Sharing costs, overheads and expertise is not only bringing down the cost of delivering services it is leading to better and more effective services.”
And Philippa Roe, leader of Westminster City Council, said: “Sharing services is not just about reducing cost, important as that is in this age of austerity, it is about improving lives and innovation.”
Merrick Cockell, the leader of Kensington & Chelsea, said: “It is up to other councils to decide whether sharing services makes sense.
“Many have already gone down this route. We are anxious to share our learning and experiences to help them in their future thinking.”
