Barnet Council will “set a dangerous precedent” for other authorities if it presses ahead with its controversial outsourcing scheme, according to a trade union.

Unison branch secretary John Burgess believes the council is making a “huge mistake” in handing millions of pounds worth of services to private business processes firm Capita.

The council yesterday announced the firm as the preferred bidder for the second largest of its outsourcing contracts under its One Barnet scheme.

If finalised, the deal would see Capita take over core council functions including trading standards and environmental health in an agreement worth £154million over ten years.

Mr Burgess said: “Barnet Council is making a huge mistake in handing over these critical services to the private sector.

“It is not just about the risks this brings but what it means in term of democratic accountability. Next year we have the local elections in May 2014. What options will there be for the electorate if all the council spend is tied up in complex contracts?

“As for all the remaining staff, the message is stark: no matter how loyal you are, no matter how hard you work, political dogma is dictating all services are to be outsourced.”

The contract is the second to be provisionally handed to Capita, which won a bid to take over the council’s back office services earlier this year.

Council leader Richard Cornelius says the two agreements will save the authority in the region of £164million.

But the scheme has courted controversy and one member of the public launched a judicial review of the outsourcing approach earlier this year.

Maria Nash was unsuccessful in her claim but she is intending to appeal and both contracts will be held off pending the outcome of that hearing, should it be accepted.

The Barnet Alliance for Public Services, which has strongly supported Ms Nash’s claim, also criticised the council’s announcement.

A spokesman for the organisation said: “Unlike the council, Capita can use the excuse of ‘commercial sensitivity’ to avoid being open and transparent in its dealings. Accountability to the taxpayers becomes a sham, councillors become ciphers, and democracy is eroded.

“Recent exposures of Capita’s failings reinforce the view that the council is reckless in handing over its responsibilities in these contracts.

“BAPS will continue to support Maria Nash’s legal challenge and to lead residents in fighting
against the mass outsourcing that threatens to devastate our borough, and for the retention of
services in-house.”