Council ‘in Serco’s hands’ over £105m contract

Peterborough City Council (PCC) is “in Serco’s hands” because of a decade-long contract signed with the private management company, a council finance chief has said.

Cecilie Booth, who joined PCC’s executive director of resources, said that it’s “unfortunate” there are no break clauses in the contract worth up to £105 ma nd signed in 2018.

Speaking at a council meeting, Ms Booth said that “there is a longer-term plan to see whether the relationship is still fit for purpose” but that“we are in S er co’ s hands when it comes to getting out of those services ”.

“Serco are making a profit on the contract with us and are probably quite reluctant to let services go,” she added.

Ms Booth’ s comments came as she presented a progress reporton the council’ s corporate services, including its partnership with Serco, at a meeting.

The report itself was more positive, saying Serco's “overall performance has remained very good across all service areas with all key performance indicators being met”.

The services Serco has provided for PCC since its initial 10-year contract came into effect in 2011 include ICT, HR, payroll, customer services, business services and business development.

The council is in the process of reviewing its outsourced services, with some such as asset management and economic development being brought back in house.

But PCC's current contract with Serco, signed in 2018 and running from 2021 to 2031, “took away quite a few of the performance indicators and also any break clauses ”, she said, meaning it will likely remain in some form. It was signed off by the then-cabinet member for resources David Seaton.