Mark Whitehead 23 November 2018

Capita to pay council more than £4m for poor performance

Capita to pay council more than £4m for poor performance image

Outsourcing company Capita has agreed to pay more than £4m compensation to Barnet Council for its poor performance - but will continue providing services until at least next year.

A report to the Tory-run authority's urgency committee says the payback will settle 'historical commercial issues, including delivery of IT improvements in adult social care and delays in delivering housing on council land.'

The council will also end the current gainshare arrangement so that it will keep all the savings achieved through better procurement – last year amounting to £2m.

It plans to take finance and strategic HR services back in house by April next year and consider the future of other outsourced functions including land and property, highways, regeneration, strategic planning and cemeteries and crematoriums.

The latest decision follows conviction for fraud of a former employee of a joint company set up by the council and Capita, 38-year-old Trishul Shah.

The joint venture was denounced by Labour as a 'textbook example of why outsourcing fails'.

The report by Grant Thornton following an investigation said the council had insufficient oversight of the joint company which 'gave the individual access to cost centres on the ledger for illegitimate purposes'.

Commenting on the latest decision, council leader Richard Cornelius, said: 'While the contracts with Capita have saved millions of pounds a year, there are some services which have not been up to scratch.

'What’s important is that we take action and taxpayers can be confident we are managing their resources effectively. Agreeing this settlement payment represents a good deal for the council.'

For your free daily news bulletin
Highways jobs

Senior Accountant x2

Islington London Borough Council
£39,462 - £45,594 per annum
There are two roles currently being advertised, one working with our Resources finance team, and one with our Housing and Public Health finance team. Islington, London (Greater)
Recuriter: Islington London Borough Council

Programme Director – Fisheries

Falkland Islands Government
£50,771 up to £56,292
The Programme Director – Fisheries will support the Director of Natural Resources Falkland Islands (FK)
Recuriter: Falkland Islands Government

Principal Engineer/Team Leader Street Works

Bath & North East Somerset Council
£39,880 - £42,821 pa
The Council’s Street Works Team is responsible for managing all aspects of road works and events that take place on our highway network. Keynsham, Bristol
Recuriter: Bath & North East Somerset Council

Social Worker / Advanced Practitioner – Children & Families Service

North Yorkshire County Council
£30,451 - £39,880 per annum pro rata + relocation support
North Yorkshire County Council have a national reputation for excellence. Skipton, North Yorkshire
Recuriter: North Yorkshire County Council

Senior Technician - Asset Management - Highways & Flood Risk

West Berkshire Council
£23,541 to £29,577 per annum (Grade G)
We are currently looking to recruit to two exciting opportunities who will join us and play a role in improving West Berkshire’s highways. Newbury, Berkshire
Recuriter: West Berkshire Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue