COUNCILS across Worcestershire have saved £1.7 million by sorting out insurance policies together.

They are now celebrating receiving an award presented by the Society of Procurement Officers (SOPO) for achieving best value on insurance through a joint tender. The insurance contracts for all seven councils across Worcestershire were awarded in April.

Worcester City Council, which needs to make £4.5 million savings, alone saved £40,000. Grahame Lucas, head of financial services at Worcester City Council, said: “We are delighted to have been awarded such a prestigious award.

“Like many organisations, we have faced unprecedented financial challenges so the significant saving on our annual insurance bill of £40,000 is excellent news. Congratulations to our procurement team who worked hard to deliver such an amazing result.”

Darrell Pulver, the city council’s procurement manager, said the insurance contract covered all the councils’ insurance needs, including premises, employers’ liability, public liability, vehicles, and specialist areas such as museum pieces.

He said this project was just one way councils are working together to save money. “Savings made from these collaborative procurement projects contribute towards Worcester City Council being able to maintain high quality services for the residents of Worcester during these difficult economic times,” he said.

Wayne Welsby, project manager for smarter procurement at Improvement and Efficiency West Midlands, which helped to fund the project, said: “This is fantastic news for both ourselves and the seven councils across Worcestershire and a clear example to others that innovative collaborative working can deliver real results and save enormous amounts of money for residents.”

Following the success of this insurance collaboration, many councils throughout the country are now looking at similar collaborative working using the same model. The project has also acted as a catalyst for the development of a national co-ordinated approach and the development of a framework for future insurance requirements.