The City of Edinburgh Council has taken the next step towards exploring alternative ways of providing its services by inviting companies to express an interest in working with the Council. The aim of the programme is to secure best value for the city and improve services in a tough financial climate.

Adverts have been placed with the Official Journal of the European Union today (Friday 5 March) giving potential bidders the chance to register their interest. These companies will then be asked to complete a qualification questionnaire which will be assessed to identify those that the Council wants to progress this with. This shortlisting exercise will be reported to Council in June and only after the findings have been approved will discussions start properly. It is expected that stage will continue throughout the remainder of 2010.

The move has been prompted by the unprecedented financial challenge facing the public sector. The Council has delivered major service improvements while securing a record £68million in efficiency savings over the last three years. The Council now needs to find around a further £90million savings in the next three years. However, there is also increasing demand for services that the Council provides, especially for vulnerable people.

The discussions with companies will cover corporate and transactional services, integrated facilities management, and environmental services, as these are the areas identified as having the potential for significant savings and service improvements. All options for how these services might be delivered in the future will be considered.

In addition, all services are developing plans for internal improvement and efficiency. The Council will only consider a different model of service delivery where there is a robust business case that delivers a step change in performance compared to the current approach and demonstrates that its adoption is in the best interests of the city.

Council Leader Cllr Jenny Dawe said: "The financial situation facing the Council is unparalleled. We must, however, continue to provide maximum value for taxpayers' money while delivering the quality frontline services that residents expect. Therefore, we have to transform customer service and secure real, lasting efficiencies to free up funding for our key priorities of education, social care and economic development.

"It is still very early in the process and proposals would only be progressed if a strong business case is demonstrated. We remain committed to working constructively with the trade unions and staff to explore, evaluate and inform all options. Any final decisions will require Council approval."