Payroll Outsourcing News

Payroll outsourcing proposals announced by Cornwall Council

Posted by Editorial Team

Cornwall Council has put forward proposals that would see its payroll services outsourced as part of scheme to privatise some services.

Libraries, benefit payments and payrolls could be run by outside companies if the plans are given the green light.

Councillors have already given their backing to the initiative, which is expected to result in contracts worth up to £300 million a year.

Senior members of the Conservative-Independent led council have expressed their support for the move and firms have been invited to compete for tender.

Up to 1,000 staff could be affected by the outsourcing plans, while a significant saving on taxpayers' money would be made, according to supporters.

Critics have called for a full debate on the issue and believe the future of employees needs to be further discussed before part-privatisation is approved.

The Liberal Democrats have claimed the move could be "catastrophic" if it does not go according to plan.

"It might all work out and be a wonderful step, but the risks are there and they can't afford to gamble with services of this importance," country part deputy leader councillor Alex Folkes remarked.

Mr Folkes added that some councillors may call for checks to be made to ensure the cabinet "understands all the implications and has made a valid decision".

Meanwhile, cabinet member for shared services councillor Steve Double claimed the outsourcing proposal did have enough detail for an informed conclusion to be made.

He claimed the authority understands there are "certainly risks" with moving payroll control over to a third party, but this is still deemed the best way forward.

According to Mr Double, handing control of services such as libraries and one-stop shops over to an outsourcing company may ensure their protection.

The councillor explained how these services could have their future threatened by forthcoming budget cuts, so moving them away from council control could be the best idea.

Independent councillor and cabinet portfolio holder for housing and planning Mark Maczmarek voted against the move, claiming there is not enough information at this time for a decision to be made.

According to the Western Morning News, he said: "These companies are about profit – they have no loyalty to the people of Cornwall or those working for the council.

"I feel this is something we could have done in-house because we have the skills."

Independent Cornwall councillor Andrew Wallis also argued against the outsourcing plans, claiming the cabinet is "taking a massive risk with taxpayers' money".

He said there are too many "unknowns" and claimed the "whole process has been rushed", with not enough thought put into such a "huge and complex issue".

"Worst-case scenario is, we end up with companies not doing the job properly, similar to the PFI fiasco with half-built schools," Mr Wallis remarked. 

Final approval for the company with the successful tender bid will be given by the council's chief executive, who will liaise with the council leader and various cabinet members.

These will include those working in the environment, shared services, human resources and waste management sectors.

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