All council outsourced services to be reviewed amid claims they fail to provide value for money

Newham Council is reviewing all of its outsourced services after claiming private companies have not been providing value for money.

Newham mayor Rokhsana Fiaz said the borough’s previous administration had signed up to a number of private finance initiative (PFI) contracts that had “delivered far less than was promised”.

She told this week’s full council meeting: “The last administration become overly and ideologically wedded to outsourcing with something that was known as ‘the council services to small businesses programme’.

“They signed up to a number of PFI contracts that have delivered far less than was promised.

“I want to develop a new approach to delivering council services, an approach that prioritises the needs of the people, local businesses and does not put maximising profits above all else.”

Ms Fiaz stopped all new outsourcing at the council when she came to power in May and, on this week she said a “thorough” review would begin of all current outside service providers.

She added: “The review I have announced tonight will be a thorough review that will pull together all of the information about existing procurement, investment and service delivery plans.

“But it will also take into account our difficult financial context and the budget constraints on the council ensuring that we strengthen financial planning.”