Council takes back control of highways

Liverpool City Council is to take back control of maintaining the city’s highways by ending its contract with Amey.

A report to the council’s cabinet is to recommend that the nine-year contract for the delivery of highways services be closed in the New Year as part of a drive to deliver 390 million of savings over the next three years due to government cuts.

If approved, the council and Amey will complete the exit by the end of January 2018.

The moves come as part of a council wide review which has brought parks services, street cleansing, bin collections, IT and HR and payroll services all back to the council to deliver further savings.

Following the exit, it also proposed that an interim service will be put in place for an 18 month period to allow the council to carry out a detailed review of the various options for future service delivery.

In the short term, it is proposed to separate the current service provision by transferring client-based functions and associated resources back to the council, and transferring the operational element of the service and the associated resource to Liverpool Street Scene Services Limited (LSSL).

Ann O’Byrne, Deputy Mayor of Liverpool, said: “The stark reality of these punitive government cuts is forcing the council to look at every single penny we spend to ensure not just value for money but to help protect the vulnerable as much as we possibly can.

“The highways contract with Amey LG did initially deliver savings but we believe more can be achieved by bringing the operations back in house.

“We have seen with other services such as street cleansing and refuse collections that insourcing can deliver savings which can be reinvested to make our money go further.”

“Anyone who travels by car through Liverpool knows the city has a pothole issue and the council is doing all it can. Unfortunately this issue is a double whammy because while we are investing £88 million in repairs the Government are putting in just £18 million.

“The Mayor has already written to the Minister highlighting this lack of investment and we will continue to make the point especially while London receives an inordinate amount of transport investment compared to northern cities like ourselves.”

Steve Mundy, cabinet member for highways, said: “I am confident that this proposal will deliver the best possible value for council tax payers, help us improve services and deliver savings through eliminating management fees and working with staff and the trade unions to promote innovation.”

David Ogden, Amey’s highways business director, said: “We have reached a mutual agreement with Liverpool City Council to end our highways contract early after both sides raised concerns about the sustainability of the contract.

“The financial environment has changed significantly since the signing of this contract and we both agreed that this is the best course of action for all. Working together since 2013, Amey and Liverpool City Council have maintained the highways and street lighting service across the city, and are now committed to ensuring a smooth transition to a new service delivery approach in the coming months.”