Sheffield Council is selling furniture to neighbouring Rotherham Council - who is paying £730,000 a year for the service.
Sheffield Council’s furnished accommodation service provides homes with appliances and furniture at affordable rents. It has 2,200 different properties of all sizes and aims to help people avoid high interest credit or expensive bed and breakfast.
Now Sheffield Council will provide goods for Rotherham Council’s furnished service over the next two years.
Sheffield can bulk buy, which in turn will save money for Rotherham. And it’s a new way of local authorities working together in times of austerity.
Sheffield has been supplying Rotherham on a temporary basis since June 2017 but now Rotherham will be invoiced monthly for any goods it has from Sheffield.
A report by Sheffield Council says there will be a number of benefits. “The anticipated amount we expect Rotherham to spend with us each year is £730,000.
“It generates income for Sheffield Council and also increases Sheffield Council’s buying power when negotiating prices with suppliers due to increased economies of scale. And it supports a number of small local family run businesses and creates employment.”
A Rotherham Council spokesman added: “This is money we would have been spending anyway.
“By accepting Sheffield Council as one of our preferred contractors we expect to achieve best value for money, as they can use their larger buying power to bring forward increased economies of scale and then pass those benefits on to us.
“As local authorities we need to look more at working together like this, especially in the current budget climate and as we look to being a more modern and efficient council.”
The contract includes the following:
Lounge Furniture – £136,000
Bedroom Furniture (excluding beds and mattresses) £106,000
Dining Room Furniture – £21,000
Beds and Mattresses £130,000
Domestic Appliances – £337,000