Leicester looks to make savings of £79m in four years

Leicester County Council expects to save £79m over the next four years by efficiency savings and by buying goods and services through e-auctions.

The local authority has already saved £9.6m during the previous four-year period by giving contracts to the lowest bidders in regular e-auctions held over the Internet.

"We've achieved this by really looking at our suppliers, looking at improved contracts and taking part in things like e-auctions, where the contract is decided but then there's an e-auction between competitors as to what they can supply the contract for," Councillor David Parsons told the BBC. Money would be reinvested in services for children and vulnerable adults, he added.

Currently the council spends £350m per year on goods, works and services ranging from domiciliary care to passenger transport. "By cutting the costs of purchasing, weíre saving money that helps to protect frontline services," said its Deputy Leader and Resources spokesman, Nick Rushton.

Leicester says it has beaten its own targets on savings by trimming £2.2m on expenditure in the last 12 months: £1m more than anticipated. It is now working towards making £79m in reductions: £22m through e-auctions and the rest through efficiency savings and by dipping into its reserves.

The cash-conscious council has already lopped £7m off its budget for management and administration, £2m from communications and £1m from back office shared services with neighbours Nottingham City Council.