Nottingham City Council is dealing with rising security costs because of a big increase in demand for security services at different council properties.
A recent report, presented to the Commissioning and Procurement Executive Committee on 15th October 2024, shows that the council plans to increase spending on security from the original budget of £950,000 to £1.3 million to keep assets, properties, and residents safe.
The report talks about the council’s efforts to meet both old and new security needs.
Security is important to protect assets, employees, and residents, and sometimes to meet insurance requirements.
Sites like the Guildhall and the old Broadmarsh intu building, which are waiting to be sold or redeveloped, need constant guarding because of problems like anti-social behaviour, vandalism, and theft. The old Broadmarsh centre also has some shops still in operation that need access to service areas and emergency exits, which makes security even more important.
In the past, Nottingham City Council (NCC) used its own staff for these services. However, the current team can only cover about 3,500 hours per month, while the demand is now around 8,000 hours per month. Of this total, 4,500 hours are considered “ad-hoc” needs, like for the Guildhall. Because of this shortfall, the council has had to hire third-party companies to help meet security needs.
To meet the growing demand for security without increasing costs too much, NCC has been using a mix of in-house staff and third-party contractors. Hiring third-party companies is cheaper because it avoids extra costs, like holiday pay, sick leave, and night-time shift pay, which adds about 33% to employee costs. This mix of using both types of staff helps the council provide the needed coverage while keeping expenses lower.
Outsourcing has been a more economical and flexible way to meet changes in demand, which can vary week to week or month to month depending on council activities. To do this, NCC made one-year contracts in 2023/24 with three top-ranked security providers from the NCC Corporate Security Services Framework. This allows the council to bring in security services when needed.
The move to use outsourcing also helps manage costs because most of the extra expenses for ad-hoc requests are paid for by the departments that ask for them, like Corporate Landlord and Car Parking. This means that the security department itself does not bear the full cost of these extra hours.
The report highlights the financial challenges the council is facing, with security costs expected to reach £1.3 million this year, up from the planned £950,000. Last year, the council spent £1.058 million on agency staff for security, while the budget for 2024-25 is set at £784,000. The rising costs are partly due to inflation and partly due to increased security demands across council properties. The council expects to keep using agency staff because of the unpredictable nature of security needs and the flexibility that agencies provide.
The council is trying to manage these costs while finding ways to reduce the impact of inflation. This approach is part of the council’s commitment to getting the best value for money while keeping public spaces safe. The NCC Corporate Security Services Framework, created in 2023, is regularly reviewed to ensure it remains cost-effective and supports social goals like creating local jobs.
Having visible security guards has proven to be effective in reducing anti-social behaviour, vandalism, and theft at council properties. Security guards also help reassure the public and contribute to the safety of council assets. They provide customer support, which has helped the council’s car parks earn Purple Flag status. The council has also tried using other security measures, like reactive CCTV, alarms, and electronic access controls.
However, in many cases, having security guards on-site is still necessary.
This current approach helps Nottingham City Council respond quickly to security problems. According to the report, removing or reducing security services would have serious consequences, like lower income from car parks and events, as well as increased risks for staff, citizens, and public assets. The idea of hiring more in-house staff was found to be less practical since there would still be a need for outsourcing to cover absences or high-demand periods.
The council is also thinking about fully outsourcing all of its security services as part of the Star Chamber efficiency programme. This could provide better value for money, improved efficiency, and more local jobs, which would have a positive effect on the community. The council is already tracking the social value of the security framework, which includes creating jobs and providing work experience for local people.
The council is working closely with the Section 151 Officer and other budget managers to make sure security spending stays under control. Both the Commissioners’ Office and finance team have reviewed and approved the increased spending.
• Agency worker spend at Nottingham City Council could reach almost £700,000