Birmingham city council is looking to establish a private company to deliver its regeneration services in the city. A report outlining proposals for the regeneration arm will be put to the council’s cabinet members next week.
Initially, the holding company will deliver construction and property services, including urban design, facilities management, building control and building consultancy.
The report says: “The basic concept is for BCC to provide the wholly owned company with the authority and autonomy to operate in a more commercial manner, whilst still retaining the core public sector service ethos.”
The plan would allow the council to sell its services to third parties, such as charities, in the city. Rules prevent councils from directly operating on a commercial basis.
The council hopes the plan will reduce overheads and increase efficiency savings, as well as providing a long-term income stream.
If approved, the council will set up a wholly-owned holding company with a series of “special purpose vehicles” to operate individual services.
However, the report forecasts job losses, saying that “reducing, reshaping and re-skilling the staff complement prior to formal transfer into the wholly owned company is essential for success”.
lisa.pilkington@estatesgazette.com
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