One Source to keep legal and governance teams but other services to return to boroughs

The London boroughs of Newham and Havering are to keep their shared legal and governance services despite dissolving a number of other shared services in the One Source partnership.

A report to Newham’s cabinet by Zulfiqar Ali, cabinet member finance and corporate services, said a “complete disentanglement” of the two borough services - including legal and governance - was not considered viable.

Splitting up most of One Source means human resources and organisational development, procurement, ICT, asset management, finance: pensions accountancy and treasury will return to each council.

One Source will continue to provide services for legal, governance, exchequer and transactional, print and the corporate business systems team. 

Cllr Ali’s report said One Source was set up in 2014 to manage a number of central and back office functions and seek efficiencies and economies of scale.

It said: “Whilst the One Source model was effective in demonstrating some joint strengths and expertise, there has not been the much needed consistency, cultural absorption, integration and flexibility, which is critical in delivering corporate priorities and manifesto commitments of the administration that has been leading Newham Council since May 2018.

“Over the past five years, it has become evident that each partner council has needed more bespoke and tailored support and solutions across key areas that a shared service cannot provide.”

A similar report agreed last week by Havering’s cabinet noted: “The rationale behind the changes is that many policies and procedures do not align between the two boroughs and therefore do not generate cost savings through economies of scale.”

Staff affected will transfer back to their original council unless they prefer not to.

Mark Smulian