This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/uk-news/2018/jan/31/contingency-plans-being-made-for-barnets-contracts-with-capita
The article has changed 9 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Contingency plans being made for Barnet's contracts with Capita | Contingency plans being made for Barnet's contracts with Capita |
| (34 minutes later) | |
| The London borough has contracts with Capita worth almost half a billion pounds | The London borough has contracts with Capita worth almost half a billion pounds |
| Richard Partington | Richard Partington |
| Wed 31 Jan 2018 18.47 GMT | Wed 31 Jan 2018 18.47 GMT |
| Last modified on Thu 1 Feb 2018 00.55 GMT | |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| View more sharing options | View more sharing options |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Close | Close |
| The London borough dubbed the “easyCouncil” for its reputation as one of the most extreme local authorities in Britain for outsourcing public services is to examine how it would handle the fallout should Capita follow the fate of Carillion. | The London borough dubbed the “easyCouncil” for its reputation as one of the most extreme local authorities in Britain for outsourcing public services is to examine how it would handle the fallout should Capita follow the fate of Carillion. |
| Conservative-run Barnet council, where Capita has contracts worth almost half a billion pounds that run for a decade – including for services such as funerals and food inspections – voted late on Tuesday to look at contingency plans in the event that Capita ran into financial distress. | Conservative-run Barnet council, where Capita has contracts worth almost half a billion pounds that run for a decade – including for services such as funerals and food inspections – voted late on Tuesday to look at contingency plans in the event that Capita ran into financial distress. |
| The decision came less than 24 hours before the firm issued a profits warning and revealed plans to raise about £700m from investors to reduce its debts, but it underlines the concern in local government over the health of private sector firms in the wake of Carillion’s collapse. | The decision came less than 24 hours before the firm issued a profits warning and revealed plans to raise about £700m from investors to reduce its debts, but it underlines the concern in local government over the health of private sector firms in the wake of Carillion’s collapse. |
| Councillor Barry Rawlings, leader of the Labour group in Barnet, said the warning from Capita and its falling share price raised questions over how the council might respond to further troubles. Speaking to the Guardian after the profits warning, he expressed concern that the firm said it would look to exit some areas of business. | Councillor Barry Rawlings, leader of the Labour group in Barnet, said the warning from Capita and its falling share price raised questions over how the council might respond to further troubles. Speaking to the Guardian after the profits warning, he expressed concern that the firm said it would look to exit some areas of business. |
| “Somewhere like Barnet, where Capita handles all of the back office, enforcement, planning, environmental health, trading standards, estates, payroll and so on. Will that be part of their core services? We might be one of the only places they do some things. If they narrow their scope, what is going to happen to these services? | “Somewhere like Barnet, where Capita handles all of the back office, enforcement, planning, environmental health, trading standards, estates, payroll and so on. Will that be part of their core services? We might be one of the only places they do some things. If they narrow their scope, what is going to happen to these services? |
| “Carillion is a warning, not a direct parallel. But there are some similarities, in the profit warning and the way the shares are going,” he said. | “Carillion is a warning, not a direct parallel. But there are some similarities, in the profit warning and the way the shares are going,” he said. |
| The move by Barnet to consider its position underscores growing concerns over the sustainability of mass outsourcing, after decades of government and local councils picking private partners to run public services. The mood appears to be changing, as nationalisation of the railways and other utilities has gained the favour of a majority of voters according to recent polling. | The move by Barnet to consider its position underscores growing concerns over the sustainability of mass outsourcing, after decades of government and local councils picking private partners to run public services. The mood appears to be changing, as nationalisation of the railways and other utilities has gained the favour of a majority of voters according to recent polling. |
| Tony Travers, an expert in local government at the London School of Economics, said “alarm bells will be ringing all over government” following the failure of Carillion. | Tony Travers, an expert in local government at the London School of Economics, said “alarm bells will be ringing all over government” following the failure of Carillion. |
| “If there were any sense of an unravelling of companies that provide services to the public sector, then immediately it reveals to us that the government cannot in the end transfer the risk [of running public services to private firms],” he added. | “If there were any sense of an unravelling of companies that provide services to the public sector, then immediately it reveals to us that the government cannot in the end transfer the risk [of running public services to private firms],” he added. |
| The extent of the private sector’s reach into once traditionally state-run services extends from cradle to grave – from the building of hospitals by Carillion in cities such as Birmingham and Liverpool to the running of funeral and cremation services in Barnet by Capita. | The extent of the private sector’s reach into once traditionally state-run services extends from cradle to grave – from the building of hospitals by Carillion in cities such as Birmingham and Liverpool to the running of funeral and cremation services in Barnet by Capita. |
| Barnet has been seen as a testbed for mass outsourcing in recent years, with the council having handed a vast chunk of the state to Capita since August 2013. Services under its remit as part of two contracts lasting 10 years include caring for people with disabilities, IT, finance, HR, planning and regeneration, trading standards and licensing, environmental health, procurement, parking, and the highways department. | Barnet has been seen as a testbed for mass outsourcing in recent years, with the council having handed a vast chunk of the state to Capita since August 2013. Services under its remit as part of two contracts lasting 10 years include caring for people with disabilities, IT, finance, HR, planning and regeneration, trading standards and licensing, environmental health, procurement, parking, and the highways department. |
| Councils have started reassessing their options in light of the collapse of Carillion, while other local authorities are also looking into whether to run services directly once more after decades of outsourcing. | Councils have started reassessing their options in light of the collapse of Carillion, while other local authorities are also looking into whether to run services directly once more after decades of outsourcing. |
| Croydon recently terminated its eight-year contract with Carillion to run libraries and said it would take the services back in-house. Bin collections in Blackpool are set to come back under council control, which local bosses have said should also save them money. | Croydon recently terminated its eight-year contract with Carillion to run libraries and said it would take the services back in-house. Bin collections in Blackpool are set to come back under council control, which local bosses have said should also save them money. |
| A Barnet council spokesperson said: “The council regularly reviews the financial status of its major suppliers as part of its contract management and contingency planning arrangements. This is what any responsible local authority would do.” | A Barnet council spokesperson said: “The council regularly reviews the financial status of its major suppliers as part of its contract management and contingency planning arrangements. This is what any responsible local authority would do.” |
| Capita | Capita |
| Carillion | Carillion |
| London | London |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |