Barnet council to save taxpayer £165m via 2 deals for back office services

The London Borough of Barnet  has signed two key contracts to generate savings to the taxpayer of £165 million over ten years.

The signing follows a Court of Appeal ruling on Friday 2nd August which found in Barnet Council’s favour following a legal challenge brought by a resident against elements of the council’s One Barnet change programme.

The first contract for the New Support and Customer Services Organisation (NSCSO) will see Capita plc take over the running of the council’s back office services which includes customer services, human resources, finance and payroll, IT, revenues and benefits, estates, corporate procurement and commercial services.

The £320 million contract will run for ten years and generate savings to the taxpayer of £126 million over that time. Approximately 500 posts will transfer to work for Capita when the contract starts on 1 September 2013.

Capita will also make an £8 million pound investment in technology to improve council back office services.

The second contract will see Capita’s property and infrastructure business entering into a joint venture with Barnet Council to deliver development and regulatory services (DRS) in the borough.

The DRS contract is worth £39 million to the council through a combination of savings and income on a contract worth £154 million over 10 years. The business will be based in Barnet and will keep staffing at broadly the current level.  The contract will commence on 1 October 2013.

In addition to financial savings, the proposals also provide for an investment of £8.2million, largely in new technology, improving facilities and staff training.

Councillor Richard Cornelius, Leader of Barnet Council, said: “Residents’ expectations for council services are growing, even as we have to deal with tighter budgets.”

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