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Chief and leader resign from Capita joint venture board

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The leader and chief executive of Barnet LBC have resigned from the board of a joint venture company with Capita due to the council’s ongoing review of its partnership with the outsourcing company.

A report to be considered by Barnet’s constitution and general purposes committee on 24 July says Richard Cornelius (Con) and John Hooton both stepped down as directors of Regional Enterprise Ltd on 28 June to prevent a conflict of interest.

The council’s policy and resources committee will on Thursday decide whether to prepare a business case for reviewing the council’s strategic partnership with Capita.

Barnet has had two contracts with Capita to deliver back office services and development and regulatory services. The council says these have delivered “significant financial savings”, but now the performance of other services needs to improve.

The proposals set out the services being considered for in-house delivery. These include finance, human resources, regeneration and highways.

Under the proposals, seventeen services awould stay with Capita, including revenue & benefits, planning, IT and customer services.

Cllr Cornelius, said: “Our priority is to deliver good quality, value for money services to our residents. Many things are working well and it’s right that we build on them. Where this is not the case, changes are needed.”

Barnet voted in January to review its contingency plans if Capita experienced financial difficulties. The review followed Carillion’s compulsory liquidation and a subsequent profits warning from Capita.

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