Barnet inks contracts with Capita for major outsourcing programme

The London Borough of Barnet has this week signed the two contracts with Capita that underpin its controversial One Barnet change programme and which were subject to a high-profile legal challenge.

The move comes just days after the Court of Appeal rejected the claim brought by local resident Maria Nash on the basis that it had been brought out of time.

The two contracts are:

  • A ten-year, £154m joint venture for the council’s Development and Regulatory Services ("DRS"). This covers a range of services including building control, land charges, planning, trading standards and licensing.
  • A ten-year, £320m+ contract for New Support and Customer Services Organisation ("NSCSO") This will see Capita take over the running of the council’s back office services, including customer services, HR, finance and IT. Some 500 posts will transfer to the outsourcing provider on 1 September.

Barnet insists that between them the two contracts will generate savings to the taxpayer of £165m over ten years.

Cllr Richard Cornelius, Leader of Barnet Council, said: “I am delighted that we are finally able to get on with delivering these savings to the Barnet taxpayer. Residents’ expectations for council services are growing, even as we have to deal with tighter budgets.

“Our strategic contracts with Capita aren’t about giving the same for less. They are based around improving and developing the services we have on offer over the next 10 years.”

Barnet was advised on the contracts by Trowers & Hamlins.

Helen Randall, Head of Public Sector Commercial at the law firm, said:  "These new contracts establish a successful new service delivery model, which is no small feat given the current economic and demographic challenges.

“The DRS and NSCSO contracts will help ensure the council can continue to provide the highest quality services for the community, while at the same time improving efficiency and securing investment into front-line services.”

Ms Nash’s legal team is reported to have applied to the Supreme Court for permission to appeal.