Purpose

To approve a two-year extension to the Banking
Services Contract, to align with the expected implementation date
of Local Government Reorganisation for Greater Essex.

Content

The
Cabinet Member for Finance, Assets and Public Transport
agrees to:-

1.      
Approve a two-year extension to the current
Banking Services and Credit Card Facilities contract with Barclays
Bank Plc to cover the period from 1 April 2026 to 31 March
2028.

Reasons for the decision

The Banking Services and Credit Card
Facilities contract enables the Council to manage and process its
day-to-day banking receipts and payments. The contract includes the
provision of merchant and corporate procurement credit card
facilities, for enabling payment acceptance by card and for
facilitating purchases by card. It also encompasses a client money
service to enable the Council to manage the finances for vulnerable
residents within Southend, either as the Deputy appointed by the
Court of Protection or as Corporate Appointee, appointed by the
Department for Work and Pensions.
 
Due to the fundamental and corporate nature of
the contract it underpins the functioning of all services across
the Council and therefore supports the delivery of all the
corporate priorities.
 
The Council’s Banking Services and
Credit Card Facilities are currently provided by Barclays Bank plc.
The current contract commenced on 1 April 2019 and was for a
duration of five years, with an option to extend for up to two
further years. That extension period is due to expire on 31 March
2026.
 

Alternative options considered

Apart from the recommended option, the
Council considered other procurement route
options including Option 2: a full re-tender process for a
seven-year contract or Option 3: the use of a Framework agreement
for a two-year contract. These alternative options are considered
in further detail in paragraphs 3.7 and 3.8 of the report.
 
Option 2 would be costly and time consuming
for both the Council and the banks submitting tenders. Also, five
years of the contract would cover the period where it is expected
that we would be part of a new combined unitary authority.
 
Option 3 could be achieved via the use of a
banking services framework to enable the procurement, which would
be less costly than the first option and the timeframe would align
with the expected implementation date of Local Government
Reorganisation for Greater Essex. However, we may not get very
favourable rates for only a two-year contract and if the successful
bank was not Barclays Bank plc, it would entail costly initial
set-up costs.