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PRIVACY
Opinionopinion

Calculating the cost of chucking the baby out with the bath water

It was publicly admitted for the first time that council officers have been asked to work out the cost of cancelling the Service Birmingham IT and call centre contracts.

Stephen Hughes

There was a genuine buzz of anticipation around the corridors of the Council House this week as it became common knowledge that potential successors to chief executive Stephen Hughes were being interviewed.

The interview panel, which included council leader Sir Albert Bore and chairman of the HR committee Muhammad Afzal, was convened to grill candidates.

Rumour has it that two have been shortlisted for the £180,000-a-year role in the scaled down management structure, and both are external candidates.

Stephen Hughes is due to retire in February – or perhaps later if the search for his successor drags on – and a signature policy under his stewardship has been the Capita Service Birmingham contract.

Now it appears that all this great work to transform the council from the archaic network of shabby offices into a streamlined hi-tech 21st century organisation worthy of the largest local authority in Europe could be undone.

It was publicly admitted for the first time that council officers have been asked to work out the cost of cancelling the Service Birmingham IT and call centre contracts.

Deputy leader Ian Ward confirmed he has asked for a detailed breakdown of how much cancellation would cost and how much the council would need to spend until 2020 on an in-house IT and call centre service.

Of course there is massive complexity around this with the core IT contract, worth between £50m and £60m a year, plus extra contracts for the call centre, one off projects, deals with schools and council tax collection services bringing total annual outgoings to Capita to £120 million last year.