Serco quits talks on extended deal

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.

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