Public Services > Local Government

Capita preferred bidder for Staffordshire joint venture

Charlotte Jee Published 27 November 2012

Capita follows up Barnet success with education opportunity

 

Staffordshire County Council has chosen Capita as preferred bidder for its educational support services joint venture (JV).

Subject to approval by Staffordshire's Cabinet at a meeting on 5 December, the Council will start negotiating the details of the contract with Capita, which will be the JV's majority stakeholder with a 51% share.

The Joint Venture Company will start operating on 1 April 2013. It also will also take over delivery of relevant council services.

According to a council document, the joint venture will create 1,613 additional jobs in Staffordshire, and "all existing county council employees [approximately 4,000] in scope will transfer to the new JV."

Capita also will invest £40m in staff and services over the first three years, which will go towards a new HQ, Outdoor Education Centres, cashless catering, new course materials and multimedia and ICT products, among other items.

There will also be a £17.6m investment in a new academy and a £6.5m investment in service lines and new school growth.

Capita said the venture will "initially deliver educational support services for schools and academies in the Staffordshire region. These services are expected to generate revenues of approximately £85m per annum over 20 years."

"The JV will additionally focus on achieving significant growth through securing new local authority, school, academy and further and higher education clients across the UK."

"The new business will focus on enabling improvement in educational outcomes in Staffordshire and for future clients across the UK. Over the first 10 years, the JV is targeting total revenue of at least £2bn."

The council document adds that if the JV with Capita does not proceed 'satisfactorily to conclusion', the alternative bidder, Carillion, will be the County Council's reserve choice.

Ian Parry, Staffordshire's Cabinet Member for Education, Finance and Transformation, said, "The joint venture offers a once in a generation opportunity to both safeguard and improve services to schools, bring over £50 million of new investment into Staffordshire, and create 1,600 new jobs."

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