A total of £1.6million has been saved by South Holland District Council thanks to a joint back-office operation.
Compass Point, the shared services company the council set up with East Lindsey District Council, has netted the savings since 2010-11 – when compared with the costs previously incurred.
The joint saving for the two councils is £4.3million which is shared in proportion to the relative sizes of the two authorities.
The savings have contributed to South Holland’s ability to reduce the cost of council tax to residents with reducing service levels over three years.
Compass Point Business Services (East Coast) Ltd runs the council’s IT, HR, finance, revenues, benefits and customer services.
A council spokesman said “economies of scale and a fundamental review of processes” had enabled the savings by introducing more efficient ways of operating by sharing staff and systems.
In August 2010, 298 people transferred into the company from both councils – it now has 223 people and has created 11 apprenticeship positions.
Coun Paul Przyszlak, deputy leader of South Holland District Council and chairman of the company’s board, said: “Compass Point is providing value for money at a time when there are great pressures on the public purse.”