Councils set to save £85 million with framework deal

13 December 2011

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13 December 2011 | Angeline Albert   

141 councils in England are expecting to save a total of £85 million after signing up to a waste management framework deal.

From April 2012, the local authorities will be able to access a household management framework agreement set up by iESE – a social enterprise launched this week formed from the defunct government agency Improvement and Efficiency SouthEast.

The councils will make savings by paying less for services such as recycling, street cleaning and ground maintenance. The total potential contract value of these authorities’ services is £1.7 billion.

Earlier this year, a policy review conducted by the Department for Food, Environment and Rural Affairs stated local authorities needed to work together to take advantage of economies of scale and bargaining power by working together to improve waste management.

Councillor Neil Blake from Aylesbury Vale District Council, which has signed up to work with iESE, said: “Councils can no longer rely on existing ways to meet their tough savings targets. Only by exploring new avenues like those offered by iESE will they achieve the scale of savings required.”

iESE aims to help councils in England find savings, share best practice and set up framework agreements. Established by the government in 2008, it has made £160 million savings for councils in the South East. The majority of the mutual’s income will be generated from fees charged to authorities based on the efficiencies created from deals.


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