Meanwhile, a massive £422 million (US$661 million) were saved through consolidating purchases for the whole of the government when possible.
A report from the Local Government Association (LGA) says that five local shared services arrangements have saved a total of £30m through a range of measures, including integrating IT systems and better procurement.
Read more: GB: LGA: local shared services shave £30m off costs
The study, commissioned by public sector lobby group the Local Government Association, and produced by consultancy Drummond MacFarlane, found that five separate shared service arrangements had total savings of nearly £31m over a five-year period.
The local authorities included Cambridgeshire and Northamptonshire county councils; Devon and Somerset fire and rescue authority; Herefordshire council, Herefordshire primary care trust and Wye Valley NHS trust; Procurement Lincolnshire; and Vale of White Horse and South Oxfordshire district council.
The report, entitled Services shared: costs spared? was carried out by strategic advisers Drummond MacFarlane and looked at shared service agreements between Cambridgeshire and Northamptonshire county councils, Devon and Somerset Fire and Rescue Authority, Herefordshire Council, Herefordshire Primary Care Trust and Wye Valley NHS Trust, Procurement Lincolnshire, and Vale of White House and South Oxfordshire District Council.
Read more: GB: Shared services agreements have saved a total of £30m, says LGA
According to the 'Services Shared: Cost Spared?' report, local councils, fire brigades and the NHS could benefit from shared service arrangements to help reduce their overall procurement costs.
In once case Cambridgeshire and Northamptonshire councils delivered savings of £1.8m by renegotiating a contract with their IT supplier, expecting to save a further £3m between 2012-2013.