A legal challenge to Barnet Council’s outsourcing programme will cost taxpayers at least £2.2million, according to the authority.
The One Barnet scheme, under which the council is looking to sell off almost £700million worth of services to private contractors, will be scrutinised at a High Court hearing on March 18.
In December, the authority chose Capita to take on a £320million contract to run its back office services for the next ten years.
The council claims the deal will save it in the region of £125million over the contract period but the decision was made the subject of legal proceedings earlier this year.
Maria Nash, a protestor and member of the Barnet Alliance for Public Services, instructed lawyers to request a judicial review into the decision on the grounds the public were not properly consulted.
Budget papers published this week show the council expects to lose £2.2million in savings even if the appeal is unsuccessful but will be forced to find £15million-a-year if its decision is found to be unlawful.
Council officers recognised that the legal dispute has “significant implications” on the council’s budget plans over the coming years.
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