Staffordshire set for £50m windfall under new education JV with Capita

STAFFORDSHIRE County Council has agreed a new deal which transfers its school support services to private company Capita.

The local authority said the independent joint venture company, which will run along similar lines to Service Birmingham – Capita’s JV with Birmingham City Council, would bring in more than £50m of investment to Staffordshire, protect existing services for schools and secure thousands of jobs.

As well as safeguarding around 4,000 existing jobs, the new company will create more than 1,600 additional posts in Staffordshire over the next 10 years.

Under the agreement Capita will invest £50m into the venture to enhance and strengthen the services.

The deal is in response to pressures on school budgets, changes in governance and increased competition from the private sector.

The council said bringing in investment would save jobs and services for the future, and meant the county council could avoid a situation where school support services were continually cut.

The JV is expected to generate revenues of around £85m a year, with the county council receiving a capital payment of nearly £32m up front from Capita for a controlling stake in the company.

All existing staff will be transferred to the joint venture under TUPE regulations, meaning their current pay and conditions will be protected.

Cllr Ian Parry, cabinet member for Education, Finance and Transformation, said the move was a ‘once in a generation’ opportunity to safeguard and improve services to schools.

“This deal will bring about vital investment and commercial expertise, protecting services to Staffordshire schools and around 4,000 jobs. These would otherwise be lost in the face of reduced funding to schools and growing competition from the private sector,” he said.

Paul Pindar, Capita chief executive said: “This JV represents a fresh new model for flexible private and public sector partnerships. It combines the complementary skills and experience of two organisations, both among the best in their fields.”

The legal work behind the new partnership was led by Jean Evans, Head of Legal Services, Staffordshire County Council, in collaboration with a team from Anthony Collins Solicitors comprising Sarah Lines, Gayle Monk, Natalie Singh, Doug Mullen and Mark Cook. Gary Delderfield of Eversheds advised the superannuation authority. Capita’s legal work was led by Hamil Stevenson. KPMG were the council’s financial advisers.
 
Anthony Collins partner Mark Cook said: “We are delighted to have worked throughout the procurement process with so many skilled officers in the council and with KPMG. Together we were able to deliver the resources and expertise needed to find and then strike the deal with an investment partner for the council.”