Suffolk councils sign up to £300m PPP

21 Aug 03
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22 August 2003

Two Suffolk councils are the latest to launch a joint public-private partnership to deliver services in an estimated £300m deal.

Suffolk County Council and Mid Suffolk District Council have already awarded 'preferred bidder' status to BT, and the ten-year partnership is expected to begin in spring next year.

Suffolk Coastal District Council will make a final decision on joining the PPP next month.

The scope and exact value of the partnership are still being finalised but the councils expect to deliver services as one organisation.

E-government and technology will be a key part of the project, with services available over the Internet or by text.

It is likely that BT will create one call centre to deliver a range of services in the region.

The estimated £30m-a-year deal could result in substantial savings for the councils but, as services are merged, it could also lead to major job cuts.

'A partnership with BT will enable Suffolk people to access public services when they want and in a way that is convenient,' said Kathy Pollard, county council portfolio member for access. 'We are looking forward to working with Mid Suffolk and other district councils to deliver a seamless service to the public.'

England's only other joint PPP, between Northamptonshire County Council and Milton Keynes Council, is still to be signed and is already almost a year behind schedule.

This dwarfs the Suffolk project both in cost and ambition, with an initial value of £776m and the transfer of up to 2,300 staff to Hyder Business Services. Both councils have conceded that it has been much more complex than anticipated and the final details of the scheme have still to be finalised.

A spokesman for Northamptonshire told Public Finance this week that the deal would now be signed before the end of this year. He added that they were currently determining service levels agreements with HBS.

The deal was originally due to begin in January this year.

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