Council to take back control
of City's highways
LIVERPOOL City Council is to take back
control of looking after the City's highways by ending its contract with Amey,
by mutual agreement. A report to the Liverpool City Council's cabinet next Friday, 24 November
2017, is to recommend that the 9 year contract for the delivery of highways services
(established in July 2013) be closed in the New Year, as part of a drive to
deliver £90m of savings over the next 3 years, due to Government cuts. If
approved, the Council and Amey will complete the mutually agreed exit by the end
of January 2018.
The moves comes as part of a Council wide review which has brought parks
services, street cleansing, bin collections, IT and HR and Payroll services all
back "in house" to deliver further savings. Although cost savings were
initially made under the contract, the Council considers that further savings
could be achieved in looking at alternative smarter and more flexible delivery
methods, as shown with its new pothole repair contracts with the private sector.
Following the negotiated exit, it is also proposed that an interim service be
put in place for an 18 month period to allow the Council to carry out a detailed
review of the various options for future service delivery.
The highways services which are currently delivered by Amey are:-
► Highway Maintenance.
► Highway Inspections.
► Highway Enforcement.
► Condition Surveys.
► Street Lighting Inspection and Maintenance.
► Winter Maintenance.
► Gully/Highway Drainage Maintenance.
► Highway Structures Maintenance and Management.
► Street Works Co-ordination.
► Alleygate Maintenance.
► Highway Professional Services.
In the short term, it is proposed to separate
the current service provision, as follows:-
► Client based functions and associated resource be transferred back to the
Council. This will include, for example, the highway inspections, street works
inspections, project management and work scheduling, and professional services (eg:- design).
► The operational element of the service and the associated resource, be
transferred to Liverpool Street Scene Services Limited (or LSSL). This will
include, for example, the gully cleansing operatives, the street lighting
operatives, and the white works operatives (eg:- flagging works).
The negotiated exit from the contract will result in eligible staff either
transferring back to the Council or Liverpool Street Scene Limited (LSSL). The
detail of those with TUPE rights will be confirmed 28 days prior to
Councillor Ann O'Byrne, Deputy Mayor of Liverpool, said:- "The stark
reality of these punitive Government cuts is forcing the Council, to look at
every single penny we spend to ensure, not just value for money, but to help
protect the vulnerable as much as we possibly can.
The highways contract with Amey LG did initially deliver savings but we believe
more can be achieved by bringing the operations back in house. We have seen with
other services such as street cleansing and refuse collections that insourcing
can deliver savings which can be reinvested to make our money go further.
Anyone who travels by car through Liverpool knows the City has a pothole issue
and the Council is doing all it can. Unfortunately this issue is a double whammy
because while we are investing £88m in repairs the Government are putting in
just £18m. The Mayor has already written to the Minister highlighting this lack
of investment and we will continue to make the point especially while London
receives an inordinate amount of transport investment compared to Northern
cities like ourselves."
Councillor Steve Munby, Cabinet Member for Highways, added:- "I am
confident that this proposal will deliver the best possible value for Council
Tax payers, help us improve services and deliver savings through eliminating
management fees and working with staff and the trade unions to promote
A further report will be submitted to Cabinet considering future delivery
arrangements within 12 months of the exit from the contract.
Amey's Highways Business Director David Ogden said:- "We have reached a
mutual agreement with Liverpool City Council to end our highways contract early
after both sides raised concerns about the sustainability of the contract. The
financial environment has changed significantly since the signing of this
contract and we both agreed that this is the best course of action for all.
Working together since 2013, Amey and Liverpool City Council have maintained the
highways and street lighting service across the City, and are now committed to
ensuring a smooth transition to a new service delivery approach in the coming