THE RULING Thurrock Labour cabinet have set in motion a bid to end the council’s contract with Serco.
In 2005, the Tory-run Thurrock Council outsourced a number of its "back office functions" to Vertex who in turn were acquired by Serco.
The contract was set to run for fifteen years, ending in 2020.
But since Labour took over in 2010, there has been a great deal of disquiet over the contract and specifically, the perceived commitment to efficiency savings.
In July, a cabinet agenda stated: "Cabinet will note that the only overspend within 2013/14 refers to Serco.
"The Council agreed a target saving of £1m in 2012/13 and, for the second year in a row, a lack of acceptable savings has been brought forward for officers to be able to agree.
A few years ago, Thurrock Council laid down the gauntlet to housing contractor, Morrison to "Shape up or ship out". Many commentators thought it was grandstanding but sure enough, the contract ended.
On Wednesday night, exactly the same rhetoric was used as the Labour run cabinet put forward a recommendation.
Here is the debate in full.
The Serco debate begins at the 8 minute mark.
Angry Thurrock councillors have demanded that officers look closely at the contract with strategic partner Serco to offer options “up to, and including termination”.
Members of the council’s cabinet were discussing the latest financial situation on Wednesday (11 February) evening and were disappointed the partner organisation had said it would deliver savings and then failed to do so.
A report stated: “Cabinet reports over recent years have identified a number of savings requests that have been agreed with the contracted strategic services provider, but which have not been delivered.”
Cllr Richard Speight said: “We have talked before about the non-delivery of savings that Serco offered and here we are again – another high-risk saving that needs to be achieved in the coming year.
“We have talked many times at cabinet over this and the difficult decisions portfolio holders and officers have made regarding very vulnerable people and services that really need the spend – and certainly Serco have failed on many occasions to make the kind of savings they’ve agreed to do.”
Council Leader, Cllr John Kent agreed, saying: “I think we have pussy footed around long enough with Serco quite frankly.
“Officers and members have worked incredibly hard once again to deliver a balanced budget for next year, a budget that protects, as far as possible, the front line – we are making people redundant here, we are doing things that we really don’t want to do.
“Year in and year out we have challenged Serco to deliver their savings and year in year out they have failed.
“We do have experience, with Morrison, of exiting failing contracts and I think I would move an additional recommendation that cabinet instructs officers to bring back a paper to us in March which explores all possible options regarding the future of the Serco contract up to and including termination, frankly I think it may well be time to say cheerio to Serco.”
Other members also complained of Serco’s lack of support and understanding of the council’s position.
Cllr Lynn Worrall said: “I agree it is about time they go,” and Cllr Phil Smith added: “I think it is about time we did something about this.”
Cllr Victoria Holloway said: “I am delighted you have put in the points about Serco – we are trying to make really tough decisions, Serco make things difficult all of the time in regards to savings,” and Cllr Oliver Gerrish said: “I agree on the point made on Serco – everyone is making savings and they have to be seen to doing their part.”
