9 November 2015

The Council is proposing to make savings to the Streets Ahead contract by re-negotiating the funding arrangement. The Council is seeking to take advantage of lower interest rates being offered in the financial markets as part of the Council’s drive to reduce costs that don’t impact directly on public finances.

These proposals are being discussed by Cabinet Members this week (11th November). If approved, negotiations with the current banks that provide funding for the contract and with other potential new funders will begin. The intention is to see if an agreement can be reached to offer more favourable interest rates than those achieved in 2012. If this is achieved then it is expected that between £7 million and £14 million could be saved over the remainder of the Streets Ahead contract (22 years).

Cllr Ben Curran, Cabinet Member for Finance and Resources, said: “It is important that we take advantage of the fact that interest rates are lower now than in 2012. Everyone knows the council is facing huge budget reductions due to government cuts. We do our best to reduce costs on back office spend to that we can direct as much resource as possible to protect front line services that the public rely on. “