SEVEN FACE THREAT OF RETENDERING

Seven councils will be forced to retender work awarded to their DSOs if they fail to meet government financial targets for 1998-99.

They were served with statutory notices last December for failing to break even on work done in 1997-98, having first allowed for a 6% capital financing charge.

If they do not meet the target for this financial year, they will be obliged to retender the work by 13 December 1999 and seek government permission if they wish to award contracts in-house.

The councils are Coventry City Council (vehicle maintenance), Croydon LBC (building maintenance), Redbridge LBC (building maintenance), Richmond upon Thames LBC (refuse collection, other cleaning, other catering), South Tyneside MBC (grounds maintenance), Tower Hamlets LBC (construction and maintenance of sewers) and West Wiltshire DC (refuse collection).

Local government minister Hilary Armstrong said: 'In the run-up to best value, the government remains committed to ensuring that local authorities' accounts for the delivery of goods and services remain in good financial health.'

But Ms Armstrong said the government had decided to take no further statutory action in the cases of Colchester BC (grounds maintenance), Hackney LBC (supervision of parking, legal services), Harborough DC (building and grounds maintenance), Hillingdon LBC (finance), Merton LBC (refuse collection), North Somerset Council (grounds maintenance), Northumberland CC (vehicle maintenance), Oadby and Wigston DC (management of sport and leisure facilities, grounds maintenance), Redbridge LBC (building cleaning), Richmond upon Thames LBC (building maintenance), Stafford BC (highway maintenance), and Waltham Forest LBC (building maintenance).