London Daily

Focus on the big picture.
Thursday, Oct 22, 2026

Former Tory council votes to end mass outsourcing of services

Former Tory council votes to end mass outsourcing of services

New council chief condemns ‘failed experiment’ under which Barnet called itself the country’s first ‘easyCouncil’

A former Tory council has voted to end the mass outsourcing of frontline services, bringing most back in-house and ending one of the most controversial local government policies in recent years.

Barnet council, in north London, called itself the country’s first “easyCouncil” in 2013 when it announced it would provide only the legal minimum of services, outsourcing everything else from disabilities and highways to planning and procurement through contractors Capita.

Bringing in the private sector at a cost of £500m over 10 years would, councillors claimed, allow them to reduce the number of direct employees from 3,200 to just 322 and ensure better public services for less money.

But the council, whose Finchley constituency was famously represented by Margaret Thatcher but which turned to Labour for the first time in the May local elections, has now voted to end that policy.

Damning the years of outsourcing as a “failed experiment” and the “death knell of the council outsourcing experiment”, the leader of Barnet council, Barry Rawlings, said: “This model of governance guaranteed savings only if other councils also came onboard: Barnet was going to be a shop window. Instead, the council has paid £229m more for Capita core contract services than was originally contracted.”

Services had already begun to be brought back in-house under the previous Conservative administration after a series of disasters. In 2017, the council was forced to admit its finances were in such a state that the regulator fined Capita, while the poor state of the borough’s roads became a big issue in the local elections.

Barnet council leader Barry Rawlings with Keir Starmer after Labour won control of the Tory council in May 2022.


In 2018, a Capita employee working for Barnet was jailed for 62 instances of fraud worth a total of £2m after his crimes were spotted – although the loss was not noticed by Capita or the council itself but by the employee’s own bank. Capita was forced to underwrite the financial loss to the council.

That same year, the council admitted it would have to axe services after revealing a financial black hole of £62m: precisely the fate that its outsourcing plan had claimed to safeguard against.

Problems have continued. The resident and blogger John Dix reviewed the invoices submitted by Capita. According to Dix, a parent phoning the library to check if a Harry Potter is in stock is charged by Capita at £8 a call while training for senior officers is charged at £1,200 a session.

By next year, however, most of the services outsourced by the previous Conservative administration will be back under direct council control. Rawlings said this will save taxpayers money and return 370 staff to direct employment by the council. The remaining Capita contract will close by 2026.
The decision has been condemned by Cllr Dan Thomas, leader of the local Conservative group. “

Barnet Labour have taken an ideological decision to bring back in-house the services currently run by Capita, despite the fact that this decision will hit Barnet taxpayers’ bank accounts,” he claimed. “It is clear that this decision is simply politics.”

Rawlings disputed this, pointing to a report by Barnet council’s policy and resources committee that found little difference – and a potential benefit of £204,000 a year – financially between extending the contract for these services and returning them in-house.

A Capita spokesperson said: “We will provide further value for money for local taxpayers as we work with the council to continue to deliver top-quality services that make the borough a better place to live, work and study for all.”

Newsletter

Related Articles

0:00
0:00
Close
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
National Health Service England and Trades Union Congress Finalize Agreement on Emergency Winter Staffing and Pay Frameworks
HM Treasury and Department for Business and Trade Announce Multi-Billion-Pound Sovereign Investment Pact to Spur Regional Advanced Manufacturing
Bank of England Governor Andrew Bailey Signals Potential for Faster Interest Rate Cuts as Domestic Inflation Pressures Ease Below Forecasts
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
×