Barnet Council has today (Thursday, 22 November) published a report, which proposes that councillors agree a £4.12m payment from Capita to settle historical commercial issues, including delivery of IT improvements in Adult Social Care (MOSAIC) and delays in delivering housing on council land.
The report will go to Urgency Committee for consideration on Friday, 30 November.
The proposed agreement will also simplify procurement by ending gainshare. This means that from April 2018, the council will keep 100 per cent of all savings achieved through better procurement. Gainshare payments to Capita last year were around £2million.
Barnet Council is also announcing it will recommend returning Finance and Strategic HR services from Capita to the council by April 2019, to address performance issues. The recommendation will be made to Policy and Resources Committee on Tuesday, 11 December. The delivery arrangements for remaining services will be considered in due course.
Finally, the report will set out the proposed approach to consultation concerning the way forward.
The Leader of Barnet Council, Councillor 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. The proposed settlement will be put forward at committee next week for members to consider.
"The return of Finance and Strategic HR services, and the wider review, will be debated by members at Committee. Rest assured; a review of all the services is ongoing and we are making progress.”
Managing Director of Capita Local Public Services, Jonathan Prew, said: “We recognise that some aspects of our service to Barnet Council have not met the standard we and our client expect, and regrettably this detracts from the positive improvements we have made to some of the services across the Council. We are committed to getting this partnership right, so we can carry on delivering vital savings for council and for taxpayers. We will continue to work closely with the council to ensure our service best meets their needs.”