Two London councils name company as preferred bidder for finance services
A pair of London boroughs have indicated that Capita Local Government is on course to take on their finance processes in a deal that will be available to other boroughs around the capital.
Wandsworth and Richmond have named Capita as preferred bidder for a managed service contract, expected to be signed in April, that will involve handling their accounts payable and receivable processes and the implementation of the company's Integra finance system.
The contract will run for six years with an optional extension for another four.
Its value has not been disclosed, but it lays the ground for a pan-London framework under which other boroughs will be able to procure finance and print services and finance systems. The service will be jointly operated by Wandsworth and Capita.
Councillor Geoffrey Samuel, cabinet member for finance at Richmond, said: “In controlling our finances we have two key policies: to share with other councils and to secure for our residents the service provider who best offers a combination of quality and price.
“This is what we have achieved. I am convinced that as well as saving money and protecting some services, Capita will provide a high quality service for our councils and our residents.”
Mark Chapman, business director for Capita Local Government, said it will promote the model across London, emphasising the potential to reduce back office costs.
This is also a significant step towards joint working between Wandsworth and Richmond. In January their leaders announced plans for a shared staffing agreement aimed at creating savings projects at £10 million per year for each.
They are looking to merge management structure,including the appointment of a single chief executive.
Pictured: Wandsworth riverside by Mike Faherty, CC BY-SA 2.0 via Wikimedia Commons