FIVE councils – united by their vision to deliver improved, more affordable services – are on their way to a projected £40m of savings as services enter new contracts with Capita and VINCI Facilities.

And while not one of the named ‘five’, East Hampshire District Council (EHDC) looks set to benefit to the tune of £3.8m over the next nine years, due to its partnership working with Havant Borough Council.

Under the two shared contracts, Hart District Council, Havant Borough Council (with services already shared with EHDC), Mendip District Council, South Oxfordshire District Council and Vale of White Horse District Council have joined forces to provide a range of services in a move that should provide great value for money for residents.

The councils’ corporate services, including human resources, IT and finance will be provided by Capita, one of the UK’s leading business process and support companies. Facilities management, property services and parking services will be provided by VINCI Facilities, with experience across the UK and Europe. In partnership with VINCI partners, Arcadis are delivering property services and Indigo delivering parking services.

While still likely to result in job loss, according to district council deputy leader Richard Millard, the authority will see benefits only with the Capita arrangement over “human resources and payroll, procurement, IT, finance and exchequer - services currently shared with Havant Borough Council.

“Facilities management, property services and parking services for EHDC will not be affected by the contract,” he said.

Involving five districts up to 85 miles apart, the two nine-year contracts mark the first time a group of councils have looked beyond their immediate neighbours to share services in this way.

The extensive experience the two companies have across the public and private sectors will allow the councils to continue to improve services for residents while also delivering enormous financial savings at the same time.

The two contracts started in South Oxfordshire and the Vale of White Horse in August 2016 and will be phased in between now and October 2017 for the remaining councils.

Mr Millard said: “By including the services we already share with Havant Borough Council in the five councils contract, EHDC is forecast to save £3.8m over the length of the contract.

“While we will continue to seek opportunities to generate income – like our expanding property portfolio – this is an example of our ongoing commitment to finding efficiencies and savings where opportunities arise.”

The contracts are being managed by a single client team set up by the councils, including staff from across the organisations.

In a statement, it is pointed out that: “To ensure the new services are delivered as efficiently as possible, staff could be asked to relocate to centres of excellence operated by the two companies. The councils and both companies are providing staff with support, advice and training throughout the transition to the new contracts.”

It raises questions over related redundancies at EHDC, which Mr Millard addressed, saying: “East Hampshire District Council and Capita are committed to minimising redundancy wherever possible. The council, as well as the new employer, will consult fully with members regarding any changes.

“Capita’s centres of excellence are located across the UK and locations have been agreed and shared with affected staff. As we are currently consulting with our staff, it would be inappropriate to provide any further details at this time.”