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MARKET REPORT - CAPITA CONTRACT HANGS IN BALANCE

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Capita is expected to be asked to provide more evidence of the progress it is making in its partnership with Cumbri...
Capita is expected to be asked to provide more evidence of the progress it is making in its partnership with Cumbria CC before a decision is taken on extending its seven-year contract.

A deal signed in February last year established Capitadbs, a business unit which runs a host of departments within the council including architecture, personnel and payroll.

But the partnership has run into difficulty. Highways management and the creation of employment has forced councillors to put forward a proposal asking for more information before they agree to the extension of the contract. The proposal will be discussed at a cabinet meeting on Tuesday.

Capita wants to extend the contract to January 2009 as part of an agreement arranged when the original deal was signed.

Adopting a conciliatory tone, deputy leader Mike Ash (Lib Dem) said last month's meeting was an important step to improving services. He added that he was looking to 'work much more closely' with Capita to resolve the problems.
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