City council hit by legal action over procurement of bus shelters

Local Government Reorganisation 2026

Read our exclusive guide providing insight into the challenges that senior legal professionals are facing, alongside a step-by-step look at the work they will need to complete to ensure a smooth transition.

March 16, 2026

Local Government Reorganisation 2026

Details: 02.May.2019

Leicester City Council is facing a £2m legal claim from street furniture contractor JC Decaux over a contract to provide bus shelters.

JC Decaux has provided shelters in which it sells advertising panels since 2002 but has said that the council has now awarded the contract to another, unnamed, bidder in a procurement process in which it argues unlawful amendments were made.

The council disputes that this has happened. A city council spokesperson said: “We can confirm that legal proceedings have been issued against the city council by JC Decaux in relation to an ongoing procurement process. They are challenging the award of a bus shelter contract to another party.

“However this process has not concluded and no contract has yet been awarded. The council is responding to the claim.”

The French company had held a 15-year contract covering 500 advertising panels, which it in 2002 forecast would generate advertising revenue of €28m (£24m).

Mark Smulian

Related Articles

London Mayor blocks £50m Metropolitan police deal with US tech company Palantir, claiming Met “only engaged with one potential supplier”

22-05-2026

Post-award contract management leaves much to be desired at many authorities, research finds

05-09-2025

City council ordered to pay £100k costs in early stages of procurement dispute about e-bike concession contract

01-08-2025

Council removes firm from blacklist of building products suppliers after judicial review challenge

23-07-2025

Government pauses debarment investigations into firms named in Grenfell Tower Inquiry

15-07-2025

Must read

Cyber Security and Resilience Bill: Why Local Authorities Cannot Afford to Wait

The UK Government’s proposed Cyber Security and Resilience Bill is likely to mark a significant shift in regulatory expectations. Jonathan Askin, Partner at Hugh James, explores the reasons why.

Practical impact of the Procurement Act 2023 – the challenges, the benefits and the legal lacunas

In the second of three articles for Local Government Lawyer on the Procurement Act 2023 one year after it went live, Katherine Calder and Victoria Fletcher from DAC Beachcroft consider some of its practical impact and implications, including how to choose the right regime, how authorities are tackling the notice requirements, considerations when making modifications, and setting and monitoring…

Automatic suspensions under the Procurement Act 2023: the first case

The test for lifting the automatic suspension under Section 102 of the Procurement Act 2023 (“PA23”) has been considered by the Courts for the first time, resulting in confirmation that the new test is significantly different to the American Cyanamid test and the suspension being maintained pending trial. Ed Williams looks at why.

Procurement Act 2023 – One Year On - When it starts to get contentious

In the third and final article of this series, Jo Dumphy and Katherine Calder from DAC Beachcroft consider some of the challenges facing suppliers and contracting authorities in bringing and defending potential claims following the introduction of the Procurement Act 2023, and highlight the practical considerations when authorities come across them.