Serco quits talks on extended deal

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Thursday, May 21, 2009
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This is Staffordshire

THE private company running Stoke-on-Trent's schools and children's services has pulled out of talks to extend its contract.

Serco took over the children and young people's services directorate in May 2007 after the Government intervened following damning reports into the city's child protection services.

The firm was awarded a £5.2 million contract to turn the troubled department around in three years.

Last month, it emerged the city council was considering extending Serco's contract for another year past its April 2010 expiry date in a bid to provide continuity.

The council's executive and members' board (EMB) agreed on April 29 to negotiate the contract extension.

But interim council manager Chris Harman told councillors yesterday that Serco was no longer interested in pursuing the extension. No reason was given.

Mr Harman, pictured, said the council was now awaiting a Government decision on whether the intervention order will be lifted or re-imposed next April. He told the transformation and resources overview and scrutiny committee: "We have had discussions with Serco following the EMB's decision, and although Serco is committed to working with the council, it has decided not to take up a one-year extension.

"As a council we now have two options for the management of children and young people's services.

"Option one is that it returns to the in-house arrangement at the end of the existing contract.

"The other option is that we go through a new tendering process, in which we would be looking for a longer-term contract.

"But whatever option the council decides to take will be subject to the Government's views. If the Government lifts the intervention order then we would have a free choice about whether it comes back in-house or we seek a new tender.

"We are also asking Serco to look at an exit strategy for bringing services back in-house, but the Government will have the final say on this."

Councillor Mohammed Pervez, political spokesman for children and young people's services, said: "Services for children and young people in Stoke-on-Trent have made significant progress through our partnership with Serco, and through the hard work of our teachers and headteachers.

"I understand Serco do not wish to enter a contract extension. That is their decision and we, as the city council, must now plan for the period beyond April 2010. We will consider the implications and draw up a series of options."

He added: "I want to reassure schools and partners that this has no implication for the council's policy direction for children and young people's services. We will continue with the policies and programmes in place and continue to drive up standards of achievement."

The city council is expected to ask the Department for Children, Schools and Families for a response on the situation later this month.

What do you think of the decision?

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  • Profile image for This is Staffordshire

    by Food forThought, Trentham

    Thursday, May 21 2009, 6:54PM

    “Could they hop in the same taxi as Meredith?
    Fantastic news. They are not solely to blame, but we are getting rid of these people who just keep messing up our City, slowly but surely.
    Bring on June 4th - anyone remember Ross Irving and his lack of support?”

  • Profile image for This is Staffordshire

    by Chris, Serco on trent

    Thursday, May 21 2009, 5:38PM

    “Serco may have done good in Social Services for Children but in Education many would find it debatable however because both services are as one them ofsted rate it all as good. Lets not forget teh comment recently made about Serco running the Ofsted system in the Midlands if this is true then they could fault everything we done after their departure.

    I would guess and i know several councillors think the same that if Serco were offered a 3+ yr contract they would jump at the chance. Some would say holding out for bigger things”

  • Profile image for This is Staffordshire

    by john, Burslem

    Thursday, May 21 2009, 2:34PM

    “J Frost - just google serco and stoke and you will find a number of recent reports including ofsted and the audit commision that state serco have significantly improved the service and provided leadership.

    Its a shame the sentinel only ever focuses on BSF, but then they are more interested in headlines than fair reporting”

  • Profile image for This is Staffordshire

    by J Frost, Trentham

    Thursday, May 21 2009, 2:07PM

    “Mohammed Pervez states 'Services for children and young people in Stoke-on-Trent have made significant progress through our partnership with Serco'. Can he produce evidence to back up this statement as, from what I can gather, any progress has been made in spite of, not because of, Serco's involvement. I would like to see factual evidence, which I suspect would be extremely difficult to provide. Good riddance, and good riddance to EMB on 5 June - the lot of them have conspired only to damage this city, and leave having achieved precisely nothing of worth.”

  • Profile image for This is Staffordshire

    by RW, Trentham

    Thursday, May 21 2009, 10:56AM

    “Good bye Mr. Rowney - Great News”

  • Profile image for This is Staffordshire

    by Steve, Trentham

    Wednesday, May 20 2009, 9:20PM

    “This leaves a further 12 months of Serco after which they will walk away with £5.2 Million of our money.
    Can anyone on the EMB tell us what Serco has achieved over the last two years? what their sucess criteria is for the next twelve months? and whether they are due to be paid in full?
    Will Ged rowney be sticking around to see BSF through to 2015? as he suggested that he would be around throughout the program all the way through consultation.
    Will Serco be held to task for their arrogance, incompetance and idleness resulting in failure to do what they were brought into Stoke on Trent to achieve?
    What of the government who appointed them? Surely failure to hold them to task is neglegent even if they've got less than 12 months to worry about it. It's a question who'll be around the longest.
    3.5% council tax rise what value for money we get.
    How can their be any faith in the proposals for BSF in Stoke on Trent;
    The elected mayor ousted under a cloud.
    six portfolio holders for chilren and young peoples services over the past 18 months, one of whom resigned his position under the same cloud as our elected mayor.
    Serco the experts employed to drive through the BSF proposals declaring that they are due to finish at the end of their contract twelve months before the contract finishes right at the start of the BSF spending program.”

  • Profile image for This is Staffordshire

    by Andi, Stoke

    Wednesday, May 20 2009, 6:12PM

    “Serco got a squeaky bum so close to being rumbled”

  • Profile image for This is Staffordshire

    by Nicky, pitsnpots.co.uk

    Wednesday, May 20 2009, 5:57PM

    “That sounds as if we get shot of them in April 2010 then - FANTASTIC!”

  • Profile image for This is Staffordshire

    by David, Fenton

    Wednesday, May 20 2009, 5:20PM

    “This sounds like sour grapes and the fact that they cant get away with manipulating the BSF programme?”

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