City council and Serco agree to end business support and customer services contract after 12 years

January 17, 2024

Peterborough City Council and Serco have agreed to end a contract under which the company provided business support, customer services and shared transactional services such as revenue and benefits.

The local authority said it had been reviewing its contracts and partnerships over the past two years “to ensure the arrangements continue to meet its needs and are providing best value for residents.

“This was a key part of the council’s Improvement Plan and as it strives to achieve financial sustainability.”

As part of this work, in the past year staff working in Property, Procurement and for Opportunity Peterborough transferred to the council.

The local authority said that in recent months the council had also been in discussion with Serco about the services it provides on the council’s behalf.

After a period of negotiation, agreement has been reached and the current contract will end in April, the two organisations said.

Approximately 275 staff will transfer to the council.

Cllr John Howard, Peterborough’s Deputy Leader and Cabinet Member for Corporate Governance and Finance, said: “I would like to thank Serco for the services they have provided for the council and residents in the past 13 years.

“We are very much looking forward to welcoming these staff to the council and we hope that the impact on them will be minimal. The main driver for this is not about reducing headcount, but to ensure all aspects of our services can be incorporated in our transformation journey which is a key part of our council achieving financial sustainability.”

Currently the council and Serco are working towards a transfer date in early April.

Mark Sandhu, Serco Operations Director, said: “Serco is proud to have supported Peterborough City Council to deliver a range of front and back-office services since 2011. We would like to thank our team for all their hard work and will now work closely with the council to ensure a smooth transition of these services.”