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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Head of Service – Social Care

St Helena
£60k pa plus International Supplement
Enjoying unique lifestyle opportunities, St Helena Island is a self-governing overseas territory of the United Kingdom. Saint Helena, Ascension and Tristan da Cunha (SH)
Recuriter: St Helena

Health and Social Care Trainer - North Essex

Essex County Council
£29468.0000 - £34668.0000 per annum
Health and Social Care Trainer - North EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Recruitment Training and Support Officer (Fostering)

Essex County Council
£26284.0000 - £33256.0000 per annum
Recruitment Training and Support Officer (Fostering)Permanent, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Vocational Trainer - English

Essex County Council
Up to £34668.0000 per annum
Vocational Trainer - EnglishPermanent, Part Time£34,668 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner