URL: https://democracy.southend.gov.uk/ieDecisionDetails.aspx?ID=1536

Decision Maker: Cabinet Member for Finance, Assets and Public Transport

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

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: 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. 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. 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.   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.  

Date of Decision: December 17, 2025