In June 2006 North Tyneside Council published an edited version of a Business Transformation Plan prepared by management consultants KPMG in conjunction with Council officers. Local government trade unions in North Tyneside (including teacher unions) commissioned this report from the European Services Strategy Unit to assess the Council’s transformation plan and to provide an evidence base to support their opposition to this plan.
The Council has a target of £50m efficiencies from the transformation plan over the next four years. However, the KPMG report identified a potential list of £84.5m efficiencies. The Council is also negotiating with the Department of Education and Skills to become the first local authority to transfer all its schools to a £100m Trust with local education services. The 85 page report covers the proposed efficiency savings, a Transformation Plan or Blueprint for Business, the consequences of the Council’s plan, outsourcing and privatising Council services, the impact on jobs, assessing the impact of transformation, the Trust model, insourcing trends, why in-house bids are essential and the advantages of in-house provision and the Alternative Plan.