Labour Research December 2011

News

Council pursues wholesale privatisation

Conservative-run Southampton Council, one of a number of councils implementing cuts to terms and conditions has come up with a new plan — wholesale privatisation.

By 2015 the council could become just a commissioning body, appointing other organisations to run its services “without consultation”, the Unite general union has warned.

Unite regional officer Ian Woodland said: “This will mean an inferior standard of services for the public with many city council services being lost as private companies drive down costs and cut corners on services to maximise shareholder profits.” Like Unite, the UNISON public services union is angry at the lack of consultation with unions.

The council aims to reduce its budget by around £76 million by 2014-15 and says it is reshaping the whole organisation. Its Change programme will lead to a “less visible role in direct service delivery” by bringing services together with other councils and public bodies, commissioning through the private and voluntary sectors, and local communities playing a more active role.

Outsourcing and services company Capita looks set to play a central role, and has been invited to most meetings of the leadership group established to take the process forward.

Woodland warned: “The involvement of Capita does not augur well for the provision of services for the public, many of the vulnerable and the future employment conditions and pensions of council staff.”