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Opinionopinion

Why proposed Capita Cuts aren't a big deal

David Bailey on why the proposed Capita Cuts aren't nearly as Big a Deal as Albert Bore's Spin suggests.

Capita

The spin given to Birmingham City Council's budget consultation highlights that 'the biggest single saving' proposed to the budget is the £20m cut from the £50m Capita Service Birmingham contract.

Er no. To suggest to the people of Birmingham that Capita Service Birmingham costs them just £50m and that 40% is being cut from that cost really takes the biscuit.

Had the consultation document stated that there would be a £20m cut from the 'core contract' with Capita Service Birmingham then it might have been an acceptable, if still very partial presentation.

The leader of the council should have been clearer with the media and the people of Birmingham on this budget: they are proposing to cut £20m from an annual current spend of over £120m, as my blogs have been stressing for some time.

It does not help an already obscure and selective conversation between the leader and the citizens of Birmingham to suggest it's a massive cut from a small budget.

In fact, this appears to be a deliberate obfuscation about the realities of one of the biggest ever private sector outsourcing contracts in municipal history, with over a billion pounds of the Citizens of Birmingham's money already having passed into the corporate hands of Capita Service Birmingham. Hundreds of millions more will follow.

And £50m for the core contract seems, in any event, something of an understatement of the core contract. I have seen no evidence to suggest that the core contract was as low a £50m. Maybe £60m or £55m, perhaps. But not £50m. Of course, that core Capita Service Birmingham contract isn't in the public domain for us to scrutinise. It should be, as it is in Barnet.

Add in the woeful call centre costs, council tax and other billing, supposed 'business transformation' (low hanging fruit stuff), payment for schools' ICT, and supposed 'one-offs' that keep popping up on an annual basis like a run of bad 'Carry On' films, and before you know it, Capita Service Birmingham raked in over £120m from the Council last year. I suspect it will do so again this year, and next. Carry on Capita, it seems.