Northamptonshire County Council has approved plans to outsource all services and make £68m of cuts in what it has termed “the most fundamental transformation… in a generation”.
The council will be reduced to a 150-member skeleton staff. The rest of its 4,000 staff members will be moved into four bodies set up by the council.
A Northamptonshire council spokeswoman said it was not outsourcing in the literal sense, and the council would not commission out to private companies.
Instead, it planned to set up the organisations which would take on statutory responsibility for services like child protection and elder care in a system she termed “right sourcing”.
However, drafts plans stated the council will “right source” through a federation of bodies which may include private businesses, out of direct council control.
These bodies, including one for child protection services, will be a mix of mutuals, social enterprises and community interest companies. They will be free to win business from other organisations.
Leader of the council Cllr Jim Harker said: “The traditional model for the council and local service delivery is unsustainable.
“The method of largely paying for local services through government grants no longer stacks up and in Northamptonshire our demand is far outstripping our income.”
Cllr Harker said: “This is all about setting these services free from direct council control. Free to find new income streams and new markets which will help not only protect these services from spending cuts but also by using this income to offset their cost to the council taxpayer.”