Is Bigger Better?

West Yorkshire council may start sharing services in a bid to cut costs.  Councillor Andrew Carter who is the Conservative deputy leader of Leeds City council has suggested that the councils of Leeds, Calderdale, Bradford, Kirklees and Wakefield could share services such as HR and payroll.

There may be efficiencies to be had, but I wonder what these departments are doing now and how well they are doing it.  Perhaps they could fix the issues they have or carry out some process improvement rather than lumping the lot together and creating some more.  Why does making it bigger make it cheaper, where are the economies of scale?

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