Councils across the south and east of Scotland are to follow the lead of their west coast counterparts with radical proposals to pool a raft of services in an attempt to save tens of millions of pounds.

The plans, involving Edinburgh, Lothians, Borders and Fife, would see roads maintenance provided across local borders with one authority taking the lead, staff employed by one council working from the buildings of other councils, and one payroll system and human resources service used by all six partners.

Detailed proposals about what can be pulled under together under the “shared services” umbrella will be laid on the table in early 2010, with officers from each of the authorities already in detailed discussions.

The plans emerge ahead of the publication of the report by former NHS chief Sir John Arbuthnott into how the eight authorities in the Clyde Valley, which cover 34% of Scotland’s population, can transform how they deliver services by pooling resources.

A report to the leaders and officials from the south and east of Scotland authorities states that road maintenance would be led by Borders, with councils sharing equipment and staff to cover shortages in other areas.

The Edinburgh, Lothians, Borders and Fife Forum believes “mobile working” would also yield significant benefits by saving on property and increasing productivity by having staff travel less, while Fife taking the lead on payroll would lead to savings.

Edinburgh and Fife are already in partnership over joint procurement and believe there is scope to extend this to all members of the forum.

The Arbuthnott report, due for publication towards the end of the month, is expected not just to focus on the shared services agenda but also on how some frontline services can be delivered across council boundaries.

Jenny Dawe, leader of the City of Edinburgh Council, said: “Councillors have shown that they are united in recognising we all face an unprecedented challenge caused by the global recession.

“We are all already committed to finding ways to improve services and reduce the costs to taxpayers, but the financial pressures on us in the next few years mean that this work has to be stepped up.”

Peter Grant, leader of Fife Council, said: “We have been planning for some time ways to improve services and reduce the costs to residents, but the financial pressures on us in the next few years mean that this work has to be brought forward more quickly.

“Taking the next step by looking at what we could share with other councils makes sense.”