Local authority agrees major outsourcing deal

OUTSOURCING group Capita has agreed a major contract with a North West local authority, designed to support economic growth, while also delivering cost savings.

Capita has been named as preferred bidder by Blackburn with Darwen Council to become its technical services partner. The partnership is expected to be worth at least £60m over the next five years, and could be extended for another five years.

Capita, which has a long-standing relationship with the council, said this deal would create the north’s first “place-based partnership” unlocking opportunities around the development of land, local assets and skills that generate income.

It claims the “flexible partnership” would deliver savings, income and growth for the borough.

The core of the new contract includes technical services such as highways and property.

Capita said: “The council will also access a range of expertise from across Capita to enable it to deliver a strategic transformation over the next five years. Beyond generating savings through reducing costs and increasing efficiencies across the council, Capita will also work with the council to generate new income through the commercialisation of existing services and assets.

“The contract includes a wider £2bn framework, which allows a number of other public organisations to directly procure Capita’s services for a wide range of infrastructure and development projects. This includes organisations within Blackburn with Darwen, across Lancashire, including all 14 other councils within Lancashire, and the wider neighbouring region.”

Cllr Andy Kay, executive member for resources for Blackburn with Darwen Council, said: “This flexible contract represents the next generation of partnerships between local government and the private sector. Our council must now find a sustainable model for funding and growth that can support us for the future.

“The services provided by our partner, Capita, and access to its wider capabilities and expertise will potentially help us to grow our revenues, reduce our expenditure and transform the borough to meet the needs of our residents over the next five years and maybe beyond.”

Andy Parker, Capita’s chief executive, said: “We have been working with the council for 15 years, and this contract builds on that long-standing relationship.

“This partnership model will transform Blackburn with Darwen and drive further investment and funding into the area – as well as allowing the council to draw upon the complete breadth of expertise across Capita. The wider framework also means we can enable Blackburn with Darwen to maximise the opportunities as regional devolution in Lancashire begins to develop.

“This model is gaining a high level of interest across local government as it focusses on delivering valuable local outcomes in a flexible manner meeting the council’s individual needs and challenges.”