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Dudley Council chiefs’ £15m savings on services praised

The saving of around £15 million by council chiefs in Dudley have been welcomed by opposition leaders.

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It comes as the cash-strapped council vow to improve the way they buy and sell goods and services from the private sector.

UKIP leader Paul Brothwood said he welcomed the move, after his group campaigned for tighter procurement savings at a Full Council meeting in March.

He said: "The news is most welcome. My group have campaigned for years to see savings in procurement. The council has a vast budget and it need to manage these external contracts better. Real savings in procurement will help us safeguard our vital frontline services.

"It's disappointing the council don't already have the necessary skills or expertise to tackle our procurement issues so an interim will be needed. Although this is not ideal the council cannot afford to waste money when it comes to purchasing.

"My group will be monitoring the progress on this very carefully.

"It's great to see another UKIP policy coming into action at the Council."

Millions of pounds are spent each year on building materials, maintenance contracts, construction sub-contractors and social care packages by the authority.

It is hoped the initiative will help to make around £4 million savings that have been targeted from the council’s general fund and millions more from the separate housing and school budgets.

Bosses say that work on transforming procurement processes will also help achieve five per cent savings, which is needed for them to keep on track with their financial strategy.

The original proposal was for an external commercial company to be appointed to drive out savings but now the changes will be made in-house instead.

An Invest to Save Budget (ISB) of £200,000 will allow external interim brought in, with an interim head of procurement taken on for a short period.

Councillor Steve Clark, cabinet member for finance, added: “The first thing we must do is ensure our own processes are in place so we will take on a procurement expert who will have experience in the commercial and local government sectors."