Nockolds Resources

2 jobs...1 man? Latest budget saving initiative from local government

Is sharing a Chief Executive a good idea?

On 20th October 2011 London Borough of Hammersmith and Fulham (LBHF) and the Royal Borough of Kensington and Chelsea (RBKC) announced that they will be sharing a Chief Executive, Derek Myers. Mr Myers has been Chief Executive of RBKC since 2000 and takes on the dual role when the current Chief Executive of LBHF, Geoff Alltimes retires.

The reason for the decision to share a Chief Executive is the need to make substantial cuts and it is rumoured this decision will save £200,000pa. The decision raises a number of concerns, the major one being how Mr Myers intends to split his time, but if he manages to succeed there is no doubt other councils will give serious consideration to doing the same. A number of councils already share certain services, for example Watford Borough Council and Three Rivers District Council share a number of services. They are also seriously considering combining with Wycombe District Council to share Legal Services.

Another option is for councils to consider outsourcing more of their work. Groups of Local Authorities are likely to have significant bargaining power with the private sector if they club together rather than looking for their own suppliers. A printing Company or Office Stationer (for example) may be prepared to negotiate a substantial reduction in their prices if they are supplying in bulk to a number of councils rather than just one. The large supermarkets have already shown how this can work and although we may not approve of their methods (in dealing with suppliers) local authorities, if they wish to make substantial savings, may have to follow suit.

 Local Authorities throughout the country are being asked to find considerable savings and sharing services or even Chief Executives may be the way forward. The concern must be whether the service they provide their constituents will be affected. If the decision to share a Chief Executive by LBHF and RBKC is a success the cynical amongst us may ask what Mr Myers and Mr Alltimes have been doing with 50% of their time now the two jobs are going to be filled by only one man.

For more information on Nockolds legal services for Local Government and the public sector, please contact Ivan Moody on 01279 712532.

Ivan Moody (profile) Ivan Moody Thursday 20th October 2011
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