London Daily

Focus on the big picture.
Friday, Jul 24, 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
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
IMF Warns UK Economic Growth Will Slow to One Percent in 2026
UK Inflation Falls to Two Point Six Percent in June as Food and Energy Costs Ease
United Kingdom Joins European Union Loan Mechanism to Support Ukraine’s Defense Needs
Prime Minister Andy Burnham Introduces Two-Pound Bus Fare Cap and Energy Tax Relief Measures Across England
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
×