Post change saves council cash

A council in Staffordshire has become the first local authority in the West Midlands to bring in a second firm to deliver its post in a move that will save £50,000 a year.

TNT has been given a new contract to collect post from two Stafford sites. It means Staffordshire County Council is now working with both Royal Mail and TNT to ensure its postal service is efficient and cost- effective.

Postal arrangements across the county council have been reviewed to make sure they work efficiently and are giving value for money.

The move was prompted because, in 2006, the postal market was de-regulated which opened up the postal service to competitors.

Under European regulations organisations must go out to tender for services over of £144,000.

Royal Mail again changed the way it charged for its postal services in 2006 by introducing pricing in proportion.

The new system meant that not only would post be priced on weight but also on size, which was a change that could have seen the cost of sending post rise.

Leader of the county council, Councillor John Taylor, said: "Around a million pounds a year is spent on post at the county council.

"It is essential the postal service we use is both cost effective and efficient.

"These changes will result in considerable savings for the county council.

"And they will also make sure we are in a stronger position to gain further savings in an emerging market place.

"As a well managed authority we are continually looking for ways to save money."

As part of the overall review, employees are being asked to follow a new postal policy.

The policy sets out guidelines on how items should be enveloped as well as ensuring addresses are laid out correctly.