Contractor Amey has been granted a £150 million contract that will allow them to offer their catering services for three local authorities in London: Westminster City Council, the Royal Borough of Kensington and Chelsea, and the London Borough of Hammersmith and Fulham.
The contract, which will last ten years, will see the firm offer its catering services, as well as building security, repair, cleaning and management of the wider environment. It is hoped that the contract will secure the creation of new hospitality jobs for the capital city, whilst service mobilisation may start as soon as later this month. The contract will fully begin from October later this year.
Other boroughs and schools in the capital city will be able to buy into the service through a partnership, considering that this contract hopes to save each of the three councils £2 million each year.
Nicholas Paget-Brown, the Royal Borough of Kensington and Chelsea's leader, said: “By sharing facilities management across the three councils we will be able to save money, protect frontline services and keep taxes low during a time of unprecedented pressure on local government finances. Through our tri-borough working we are proving to residents and other local authorities that this approach works and provides even better services.”
Under the deal, over 150 current employees will be transferred under Amey. This sharing between councils has been a trend since the councils' shared services partnership was announced back in 2011, allowing children's services, adult social care and libraries all to be shared among local authorities.
Mel Ewell, chief executive of Amey added: “Working collaboratively with the councils will bring together service delivery expertise from the public and private sector, helping us to achieve their vision of enhanced services and greater efficiencies."
It is estimated that all the local authorities in London are facing a 28 per cent cut in their budgets for the financial years leading up to 2015.
Berkeley Scott is a specialist recruitment agency in the catering industry.