Two Lincolnshire District Councils to save £11m following contract renewal for key support services

Posted on 24 August 2020

Media Release on behalf of East Lindsey District Council, South Holland District Council and Public Sector Partnership Service

East Lindsey and South Holland District Councils are set to save up to £11m after renewing their joint contract with Public Sector Partnership Services Ltd (PSPS) for a further ten years.

Established in 2010 as a joint venture between the two authorities, PSPS (then called Compass Point Business Services) provides savings through a shared services model, this sees the company provide a range of corporate and support services to the District Councils, including: Human Resources, Financial Services, Revenues and Benefits, Health and Safety, ICT and Customer Contact. Since their formation PSPS have delivered £19m worth of savings to both councils and over the course of the new ten-year contract it is anticipated that a further £11m of savings will be achieved, taking the total value of savings to £30m over twenty years.

Key to delivering the next raft of savings will be an ambitious £1.5m transformation and digitisation programme, which PSPS will deliver over the course of the new contract. This will help the company improve their service delivery and expand the services they offer; whilst also supporting the modernisation of both Councils and the way they serve their communities. It is also hoped that it will aid the company in attracting further local authority clients, something the company have been focusing on since re-branding as Public Sector Partnership Services Ltd in 2019.

Councillor Graham Marsh, East Lindsey District Council Deputy Leader and Portfolio Holder for Partnerships, said: "I'm very pleased to have finalised this new contract with Public Sector Partnership Services Ltd. Over the past ten years they have done a fantastic job in supporting our council, especially at a time when we have needed to be ever aware of our finances. The savings and transformation they have helped us deliver have been remarkable and I look forward to continuing to work closely with them over the coming years."

Councillor Tracey Carter, South Holland District Council's Portfolio Holder for Governance and Customer and Member responsible for PSPS, said: "Modernisation and delivering cost efficiencies for residents is something all councils work hard to deliver, therefore I'm delighted with the savings and transformation we've delivered over the past 10 years. I look forward to a further 10 years when we can hopefully deliver even more savings and efficiencies to the residents of South Holland."

Peter Coupland, the current Chair of the Board of Directors for Public Sector Partnership Services said: "The PSPS Board are delighted that the successes and achievements of the Company, through the joint partnership between East Lindsey and South Holland District Councils, has been recognised and will result in a new ten year contract. The shared arrangements have delivered significant savings since 2010 and we are committed to delivering our next programme of transformation, which will deliver an additional £11m savings plan over the next ten years. This is great news for the Company, its 235 employees, the Councils and importantly the local community who receive good value services. The Company Board are keen to maximise and extend the partnership working between SHDC and ELDC whilst also exploring opportunities for growth with other local authority partners. The Board would like to recognise and thank the PSPS staff who have delivered an amazing programme of change and improvement over the last four years."