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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Ebbsfleet Development Corporation
up to £165,000
Ebbsfleet is one of the UK’s most ambitious regeneration projects, a 21st-century Garden City Ebbsfleet, Kent
Recuriter: Ebbsfleet Development Corporation

Para Swim Coach

North Yorkshire Council
£15.84 - £17.29 per hour
Lead, Inspire, and Empower – Join Our Para Swim Coaching Team Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Head of Legal and Governance

Elmbridge Borough Council
£92,948-£104,310 plus £6,500 Leadership Allowance and £5,000 Statutory Officer Allowance
Elmbridge is a vibrant borough, celebrated for its green spaces, bustling high streets and welcoming villages. Elmbridge, Droitwich
Recuriter: Elmbridge Borough Council

Planning Officer

The Royal Borough of Kensington & Chelsea Council
Up to £40404 per annum
Shape the future of our borough through thoughtful, balanced planning that benefits residents, businesses and communities.As a Planning Officer in our England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Adults Team Manager - Early Help & Wellbeing

Essex County Council
£54001 - £66899 per annum
This is a 10 month fixed term contract or secondment opportunity.The RoleThe Early Help & Wellbeing Team is a welcoming, compassionate and innovative England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner