G4S wins race to run two prisons

SECURITY firm G4S has won the race to run two West Midlands prisons.

Justice secretary Ken Clarke MP has announced that the global company, whose UK and Ireland operation is headquartered in Surrey, would take over management of HMP Birmingham from October.

Featherstone 2, which is currently being built near Wolverhampton, will come under G4S from April next year.

The Ministry of Justice said HMP Birmingham was chosen for a market test review in 2009 after being identified by the National Offender Management Service as performing poorly.

G4S said the two contracts were for 15 years each and worth an estimated total value of around £750m.

Mr Clarke told Parliament: “I would like to thank all the bidders for contributing to what has been a challenging contest and which will secure significant improvements and savings at all the establishments involved.

“This Government is committed to delivering reform in our public services. This process shows that competition can deliver innovation, efficiency and better value for money for the taxpayer but also that it can do so without compromising standards.”

The Prison Officers Association said it would consider strike action following the announcement.