Richmond and Wandsworth councils have confirmed they have signed a six-year joint finance agreement with Capita.

The deal, which Wandsworth said would save taxpayers around £6.8 million, will bring existing accounting processes closer together, as well as offering new transactional services.

In efforts to cut costs, the councils are forming a shared workforce to work across the boroughs, which will see them jointly employ council offers and share a single chief executive.

Related content

Wandsworth and Richmond choose Capita for finance management services
Catalyst needed for local government G-Cloud move

They will continue to have separate elections for councillors, and separate cabinets and leaders.

The councils have said this could save up to £10m a year for each council.

The deal with Capita, which could be extended by a further four years, is one of the first jointly-procured contracts they have signed. It was mooted in February, but the latest announcement confirms the deal and sets out the expected savings.

Wandsworth finance director Chris Buss described the deal as “a good early win” for the joint working arrangement.

He said that it would deliver a saving for both councils that would help them protect front line services.

Geoffrey Samuel, deputy leader of Richmond Council, agreed, adding that he was “convinced” that Capita would provide a high-quality service for councils and residents.

Capita’s Integra system aims to speed up invoice processing and offers a range of business intelligence tools that should allow better management of suppliers.

The deal also establishes a pan-London framework that other councils can use, which Wandsworth council said could lead to increased savings across the city.

Image credit: Flickr- Sebatian Wiertz