THE preferred model for delivering a major public service cost-cutting venture in Herefordshire has been agreed.

Herefordshire Council’s cabinet approved a joint venture company running the groundbreaking shared services initiative which will see support services merged between the council, Herefordshire Primary Care Trust (PCT) and Hereford Hospitals Trust.

More than 100 people could lose their jobs during the move, which is expected to save up to £5.4 million. Areas affected include finance, human resources and payroll.

The partnership could be in force by Christmas.

The chosen model, which will be a public services partnership between the three bodies, was selected ahead of an idea to outsource corporate functions to the private sector, and selecting one of the organisations to provide services for the other two.

The move would be the first such merger in the country and is being monitored closely elsewhere.

Between 104 and 140 fulltime posts could be lost. It is suggested most of these could be realigned to support frontline services or absorbed through natural staff turnover.

Talks over the terms of the partnership will continue, along with discussions with unions over the potential redundancies.