Mark Whitehead 04 October 2018

Former Northants leader admits ‘mistakes’ over PFI deal

The former leader of crisis-torn Northamptonshire County Council has admitted mistakes were made in a PFI deal which has meant up to £2m a year being paid for empty care beds.

The 25-year contract to provide care for the elderly was negotiated by the council in 2003 but it admitted this week that the centres had been operating below 30-50% occupancy for several years.

The problems with the contract emerged when a document was put to the council setting out a ‘stabilisation plan’ to deal with a £65m budget shortfall this financial year.

It includes cutting spending on agency staff and highways services and increasing council taxes.

Government-appointed commissioners were brought in to oversee the council which has twice banned new spending.

The PFI deal with private operator Shaw Healthcare paid for four specialist healthcare centres for vulnerable elderly people.

But the council said the centres were operating below capacity and it was spending between £1.5m and £2m a year on empty beds.

Mick Young, the Labour leader of the council when the deal was negotiated, said: ‘Obviously, mistakes were made around some of the details and, in hindsight, the 25-year term was a mistake, as it's impossible to predict the future.

‘It's all very well for people to turn it into a political tennis match now, but at the time the contract was signed, it was the view that this was the only thing that could be done, and it was unanimously accepted by the council.'

Banning urban pesticide use image

Banning urban pesticide use

RSPB and PAN are working on a letter from local councillors calling on the Government to introduce a national ban on urban pesticide use. Find out more below.
SIGN UP
For your free daily news bulletin
Highways jobs

Domestic Abuse (Perpetrator) Prevention Worker

Essex County Council
£30931 - £35362 per annum + + 26 Days Leave & Defined Benefit Pension
Domestic Abuse (Perpetrator) Prevention Worker - Multi Disciplinary TeamFixed Term, Full Time£30,931 to £35,362 per annumLocation
Recuriter: Essex County Council

Data Analyst - 6 month FTC

Essex County Council
£25081 - £29508 per annum + + 26 Days Leave & Defined Benefit Pension
Data AnalystFixed Term, Full TimeUp to £29,508 per annumLocation
Recuriter: Essex County Council

Transport Strategy Manager

North Northamptonshire Council
£55848 - £59442
We are looking for an experienced and talented professional to join North Northamptonshire Council Sheerness House, 41 Meadow Road, Kettering, United Kingdom
Recuriter: North Northamptonshire Council

Specialist Children and Family Worker - 12 month FTC

Essex County Council
£30931 - £35362 per annum + + 26 Days Leave & Defined Benefit Pension
Specialist Children and Family WorkerFixed Term, Full Time£30,931 to £35,362 per annumLocation
Recuriter: Essex County Council

Director of Children’s Services

Bedford Borough Council
Up to £136,757 per annum (pay award pending)
Bedford Borough Council is looking for a dynamic and visionary Director of Children's Services Bedford, Bedfordshire
Recuriter: Bedford Borough Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.