£31m savings for Barnet through controversial contract

Barnet Council and Capita have revealed that overall savings of £31 million have been delivered three years after the council outsourced a contract to the company.

The London borough awarded Capita a 10-year contract to run its Customer and Support Group (CSG) in 2013, outsourcing HR, finance, IT and estates services in the process.

In April 2015, 87 per cent of Unison members working at Barnet Council voted in favour of two days of strike action against what they described as the council’s ‘obsession’ with outsourcing.

Despite the concerns, a council review has shown that the cost of delivering the services provided in the contract is now £6 million a year less than before the contract was signed.

Moreover, 90 per cent of the contract’s key performance indicators being met or exceeded. The overall £31 million figure includes savings from procurement and additional council tax income received.

The review also identified opportunities for further savings potentially worth over £2 million a year.

Additionally, the contract review has also highlighted increased resident satisfaction, with 76 per cent of residents being reported as satisfied with the outward-facing customer services, up from 52 per cent before the contract was established.

This increase was even more significant in respect of face to face services, as 96 per cent of residents who engaged with the council in this way said they were satisfied compared with a previous 35 per cent.

Councillor Richard Cornelius, leader of Barnet Council, said: “I am very pleased to see that, three years into the contract with Capita to supply our back office and customer services, we are seeing substantial savings as well as increased resident satisfaction. This review confirms the contract is providing tangible benefits for our residents.”

Mark Dally, Capita’s partnership director for Barnet, added: “This positive review is a huge testament to the hard work of the Customer and Support Group team, and shows that it is not just delivering better value services to the council – but that resident satisfaction with those services is increasing. By driving such significant savings while improving customer satisfaction levels we are helping Barnet Council protect crucial front line functions and make significant steps towards becoming a self-sufficient commissioning council.”