Old Joe’s Almanac: Capita
What’s not to like when you are reportedly making £58,000 profit a day?
Unfortunately, the stellar performance of Service Birmingham, Capita’s ICT joint venture with the city council, isn’t to the liking of many Labour councillors. To say they are concerned about the council shelling out £120 million a year to Capita at a time when essential public services are being cut to the bone is putting it mildly.
Council leader Sir Albert Bore is trying to renegotiate the Service Birmingham contract to save £20 million a year. But that’s not likely to placate his revolting backbenchers, who recently took exception to Capita charging the council 37,000 for a single computer. They want blood. Or failing that, they want to bring ICT services back in house, or even contract them out to small local firms.
Will Capita’s ‘special relationship’ with Birmingham council come to an end in 2014? Don’t bet on it.
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