Leeds's £1 million postage bill battle

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Leeds City Council is looking for big cuts in its postage bill, which last year topped £1 million.

The council, which is heading for an overall £6.7m overspend, paid £1,011,929 for postage in 2008-09.


It now says it is on track to save £240,000 by sending 70 per cent of its mail second class.

The council serves more than 760,000 people and since April last year has sent out over two million items of mail.

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A spokesman said: "We legally have to send certain mail – such as benefit letters and enforcement notices – first class.

"We deliver larger sized letters and parcels ourselves to addresses within Leeds to reduce postage costs.

"We are looking at other areas to reduce costs – including limiting the number of franking machines we use and reducing the amount of out-sourced mail work.

"By ensuring mail is correctly addressed and labelled, we estimate around £93,000 will be reimbursed to the council by Royal Mail this financial year." The money is paid by Royal Mail for letters which can be read by their sorting machines.

In the first nine months of the last financial year the council spent £445,459 on first class mail – 54.2 per cent of all items.

For the first nine months of the current financial year first class post cost £160,617 – 24.3 per cent of all mail.

After the first six months of the 2009-10 financial year it was revealed the council was heading for a £5.5m overspend. Senior officials said actions plans were being put in place to try to bring
the budget back in line.

But senior councillors were recently told that in recent months "new pressures had arisen" and the overspend was now projected to be £6.7m at the end of March.

Reduced income from planning and building fees, commercial rents and leisure facilities have contributed to the cash problems along with £3.1m higher than expected costs for residential and nursing care placements.

The council is likely to have to dip into its reserves, which at the end of the last financial year stood at £16.1m, to plug the hole in the budget.