Barnet Council leader Barry Rawlings has said Labour is “taking back control” of the north London borough’s services after the last of its long-running Capita contracts came to an end, with IT and website provision returning to direct council delivery from 1 October.
The switch completes the unwinding of the outsourcing model adopted under the Conservatives, when Barnet handed a wide range of functions, from planning to highways, to Capita under contracts first signed in 2013.
Barnet Labour says more than half a billion pounds was ultimately spent through the arrangements, with the bill for council taxpayers running £200 million higher than originally expected.
Rawlings: ‘Labour has taken back control’
“Under the Conservatives, Barnet Council let go of control of a long-term strategic vision for the council, and lost the opportunity to prepare for the severe financial challenges of today,” Rawlings said.
“Labour has taken back control and will ensure that we can find our way through these difficult conditions, with a council that is truly responsive to residents.”
The IT service had been due to move to a new outside supplier on 1 October, but the council abandoned that procurement in September after a review found that running it in-house offered better value. Capita staff working on the service have transferred to the council.
Rawlings said returning IT in-house allows the council to retain ownership of its technology operations, priorities and decision-making, with clearer accountability and greater control over cyber security.
A test for insourcing
The change comes as Labour runs Barnet as a minority administration after May’s elections left it and the Conservatives with 31 seats each, with Conservative group leader Peter Zinkin attending cabinet as a non-voting observer.
Residents are likely to judge the move less on arguments about who signed the original contracts and more on whether services run directly by the council perform better and offer value for money.
Other Labour councils will be watching Barnet closely as a test of whether rebuilding in-house capacity can offer a lasting alternative to large-scale outsourcing.
