Core council functions including environmental health and trading standards will be taken over by private firm Capita, it was announced today.

The business processes firm was selected as the preferred bidder for Barnet Council’s development and regulatory services contract, worth in the region of £154million over the next ten years.

The contract is one of several being outsourced by the authority under its One Barnet scheme, under which it aims to save more than £54million by 2015.

Barnet Council says the deal will provide savings of £39million over its ten-year duration and claims staffing levels will be kept “broadly the same” as the operations will remain in the borough.

Capita has agreed to invest £8.2million updating council technology, facilities and staff training as part of the deal.

Departments being outsourced include building control, land charges, planning and development management, strategic planning and regeneration, highways services, environmental health, trading standards and licensing and cemetery and crematorium services to the borough.

Critics have previously claimed that putting issues of public safety in the hands of profit-making companies puts public health at risk.

The latest announcement means Capita will take on two of Barnet Council’s biggest outsourcing contracts, having been named as the preferred bidder for its back office services earlier this year.

Anti-outsourcing campaigner Maria Nash brought a judicial review over a lack of consultation on the deal but lost her High Court case because it was brought out of time. She is seeking to appeal.

The council claims the combined savings of the two contract is £164 million over the next ten years.

Councillor leader Richard Cornelius said: “This is very good news for the Barnet taxpayer and users of these services.

“Our savings will mean there will be money available to spend on other frontline services and an investment in new technology to improve our service to residents.

“We believe that the combination of our public sector skills and the entrepreneurship of the private sector can lead to a growing Barnet based business. There won’t be many local authorities preserving, if not growing, staff levels in these services over the coming decade.

"As importantly, at a time of financial stringency, we will see an investment in new technology to improve the services we offer residents. 

“This is a very difficult time for local government but Barnet has faced up to the twin challenges of falling income and rising demand. We have taken difficult decisions and taken them early and that leaves us well placed for the coming years.”