London Daily

Focus on the big picture.
Monday, Aug 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
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
First Bus Bars Unaccompanied Under-Sixteens From Evening Services in Stoke-on-Trent
Lithium-Ion Battery Fires Cost UK Waste Sector About One Billion Pounds a Year
Reform UK Proposes Lower Social Housing Priority for Foreign-Born Naturalised Citizens
UK Government Deploys AI Drones in Crackdown on Illegal Waste Dumping
EU Biometric Border Checks Cause Disruption for British Travellers and Freight Operators
UK Expands Voluntary Drug Treatment Programme for Sex Offenders to Twenty Prisons
CrossCountry Cancels Most Services After Major Power Failure at Control Centre
Met Office Warns El Niño Could Bring Severe Autumn Storms and Higher Food Prices
Resolution Foundation Says UK Productivity Growth May Be Stronger Than Official Data Suggest
Andy Burnham Proposes Giving Regional Mayors Greater Planning Powers
UK Government Overhauls Planning Rules to Accelerate Housing Near Transport Links
Russia Withdraws Ambassador to Britain and Warns of Retaliation Over UK Drone Supplies to Ukraine
Iran-Linked Hackers Blamed for Cyberattack That Shut Down UK Power Plant
Andy Burnham Pledges UK Support for Long-Range Missile Production in Ukraine
Australia Combines Indigenous Fire Knowledge With Satellite Tech to Combat Catastrophic Wildfires
Father and Son Jailed in Scotland Over £900,000 Airport Cannabis Smuggling Operation
UK Fraud Reports Surge Sevenfold as Criminals Exploit QR Codes in Parking Meters and Phishing Emails
Brighton Thrash Aston Villa in Four-Goal Opening Half as Manchester City Trail Bournemouth
Erin Patterson Appeals Triple Murder Convictions After Hotel Mixed Sequestered Jury With Prosecution
Bank of England Maintains Close Watch on Banks Amid Global Economic Uncertainty
Warm Weather and Tourism Support UK High Street Spending During Summer
Westminster Faces Continuing Political and Administrative Fallout From Epstein Files Release
UK Invests in Domestic Defence Drone Manufacturing to Strengthen Military Supply Chains
Around Five Million UK Households Face Higher Mortgage Payments by 2028
Bluetongue Virus Cases Rise Across England, Wales and Scotland
UK Government Holds First National Day for Victims and Survivors of Terrorism
Historic Summer Droughts Threaten UK Harvests and Put Further Pressure on Food Prices
UK Economy Holds Up in Second Quarter Despite Global Energy and Geopolitical Pressures
UK Opens National Artificial Intelligence Safety Testing Facility
UK Government Finalizes Plans to Bring Remaining Regional Rail Services Into Public Ownership
Environment Agency Imposes Record Penalties on Water Companies Over Illegal Sewage Discharges
Great British Energy Announces Offshore Wind Partnership in North Sea
UK Government Tightens Planning Rules to Accelerate Housing Development
NHS Launches Digital Overhaul to Cut Elective Care Waiting Lists
Bank of England Signals Interest Rates May Stay Higher for Longer as Inflation Pressures Persist
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
×