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Edinburgh Council rejects plans to outsource FM services

Plans to outsource the City of Edinburgh Council’s facilities management services have been rejected as it seeks to provide a framework to address a £126 million shortfall over the next four years.

The decision was taken at a recent meeting of the Finance and Resource Committee. Councillors have instead requested for new proposals to be developed for delivering FM services in-house with specialised support.

Deputy chief executive Alastair Maclean warned more jobs would be under threat if councillors voted against privatisation of its key services. It is estimated that some 2,000 jobs will be lost.

The four-year budget framework that was agreed will now form the basis of the Council’s annual public engagement exercise which starts today.

Councillor Alasdair Rankin, finance convener, commented:

“This is the start of a long process. There were some important decisions made today and we have agreed the framework for achieving the savings needed over the next four years.

“With greater demand for our services and our overall budget remaining the same we need to take action to ensure we safeguard frontline services for the people of Edinburgh.

“We are very clear about the scale of the financial challenge that the Council is facing we will work tirelessly to ensure that the services we provide are the ones which people need and want. The decisions taken are the next step to achieving this.”

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