Surrey and East Sussex councils to join forces on procurement

Surrey and East Sussex councils have announced plans to "save millions of pounds" by working together to drive harder bargains with suppliers used by both authorites. The councils, which are both part of the SE7 group of seven major south east councils formed to drive down costs and improve services, said that the savings of millions annually through joint procurement, will be on top of the money saved by each authority from renegotiating deals with contractors. According to Surrey, in the last two financial years its procurement team has saved nearly £56m through better deals, with £34m of the sum secured in 2011-12. A target of £25m has been set for 2012-13 by the authority. Similarly, East Sussex said that it has also saved millions through its procurement activities, which includes working closely with SMEs. David Hodge, Surrey council leader, said: "The public sector should be seen as a single team co-operating to save money wherever possible while continuing to provide excellent services. "By bulk buying we will enjoy economies of scale that will allow us to do more for less and provide even greater value for money for the many millions of residents we represent." Peter Jones, leader of East Sussex county council, said that if approved, the collaboration would be a "ground-breaking partnership". He added: "By pooling our resources we will be able to drive better deals for both our communities, improving services, supporting the local economy and delivering the lowest possible council tax." The remaining SE7 members, which comprise West Sussex, Kent, Hampshire, Medway and Brighton & Hove councils, will be given the opportuninity to join the collaboration once the shared purchasing operation is live. Michael Larner, senior analyst at public sector market intelligence firm Kable, said that it would be interesting to know how the remaining SE7 authorities view the arrangement, as it will only initially involve Surrey and East Sussex. "It's an example of authorities going outside the SE7 consortium on a more bilateral basis where circumstances suit the needs of participants more precisely," he said. The plans will be considered at a meeting of East Sussex's cabinet on 24 July. This article is published by Guardian Professional . Join the Guardian Public Leaders Network free to receive regular emails on the issues at the top of the professional agenda.