Leicestershire and Nottingham to share services

The deal, which the councils hope will save £2m annually, will see them sharing human resources, payroll and finance services. It is believed to be the first such arrangement involving a county and city council from different areas. Leicestershire said the agreement is also the first step towards a new East Midlands shared services centre, which also may attract other authorities. "In these challenging times, our innovative agreement shows how authorities can achieve real savings by working together," said David Parsons, leader of Leicestershire CC. "Every pound we save is a pound that we don't have to take away from the frontline. I would encourage other authorities in the Midlands to consider joining us and achieve benefits themselves." Local government secretary Eric Pickles welcomed the news and said it is "exactly the sort of innovation that will help councils to protect hardworking families and the most vulnerable". "By sharing back office services, they'll be able to protect the frontline, and even improve the choice and services that are on offer to local residents," he added. Leicestershire is already working with Leicester City Council on a shared internal audit service, and with Charnwood BC on unified HR services. The authority is also looking at working closely with other public bodies through the new community budgets scheme.