Headlines: November 29th, 2012

Staffordshire County Council is set to launch a new service delivery model in a deal with Capita.

The joint venture between the Council and Capita will deliver education support services to councils across the UK. The package of services will range from school improvement to catering, ground maintenance and performing arts.

Capita will bring over £50 million of investment, £40 million of which will be dedicated to staff and services over the next three years. The county council will receive a capital payment of nearly £32 million, which will be available to reinvest in a wide range of council projects and services including education, care for the elderly and looking after children in care.

The joint venture is an innovative solution that will combine the best of the public sector, the knowledge and expertise in delivering services to schools, with the commercial acumen of the private sector. This will allow the new company to compete in the marketplace.

The deal will bring about vital investment and commercial expertise, meaning services to schools are sustained and around 4,000 jobs are protected. These would otherwise be lost in the face of reduced funding to schools and growing competition from the private sector. Rather than being forced to keep scaling back services, the county council has formed a radical solution that will avoid a potential ‘death by a thousand cuts’ situation.

The partnership will have its headquarters in Staffordshire and 1,613 additional jobs will be created in in addition to the almost 4,000 staff transferring into the new joint venture. Capita have committed to protect jobs and transfer all existing staff under TUPE regulations, meaning that their current pay and conditions will be protected.