Jamie Hailstone 28 February 2007

Capita chief slams ‘sluggish’ reforms

The chief executive of local government contractor Capita has reportedly accused the Government of dragging its heels over public sector reform.
Paul Pinder told reporters last week that there was a ‘wealth of opportunities’ to improve public sector efficiency ‘and we wish it was moving faster’.
Mr Pinder said the imminent departure of prime minister Tony Blair and questions over who would replace him was creating a great deal of uncertainty. His comments came as Capita announced its preliminary results for last year, which included a 21% rise in turnover from £1.43bn in 2005 to £1.73bn.
‘Capita has performed very strongly in 2006,’ said Mr Pinder. ‘We have secured record levels of new business, thereby strengthening our position as the UK’s market leader in providing services to the public and private sectors.
‘Our successes in 2006 and progress in early 2007 mean that the ingredients for a successful year are already in place. The board anticipates delivering strong growth in 2007.’
Capita’s local government services signed deals last year with several local authorities, including Birmingham City Council, Rossendale BC and Edinburgh City Council.
The contractor signed contracts and renewals worth £1.37bn in 2006, compared with £1.14bn in 2005. Liverpool City Council and Hackney LBC have both signed deals with Capita Children’s Services to supply integrated children’s computer systems. The system combines educational and social services information in a single child record.
‘The Government requires all local authorities to have a multi-agency system in place for managing key data on children,’ said Capita Children’s Services director, Sean Massey.
The contractor also signed a 15-year partnership deal with Swindon Council last month, worth £243m.
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