Tory council outsources education in cost-cut move

Conservative councils are privatising services in a move which is being led by the outsourcing of parts of education in Essex.

Several authorities have privatised refuse collection, parking and street cleaning.

But Essex County Council announced it intends to outsource all or most of its services - including the management of schools, social care, roads and libraries - to make efficiency savings.

The authority has shortlisted two companies for an eight-year, £5.4billion contract in what is regarded as a blueprint for councils under a Tory-led national government.

Public sector union Unison claimed the move could lead to 6,500 job cuts and is considering a legal challenge.

Essex leader, Lord Hanningfield, said he expected the winning company to identify at least £200million of savings. He admitted that some jobs would be lost but denied the figure would be as high as claimed by Unison.

Other councils planning to offer out contracts include Barnet, Harrow, Havering and Hammersmith & Fulham - all under Tory control.

They have said they are planning to exploit the competitive market conditions created by the credit crunch.

Havering has contracted out its parks security while Harrow council is due to carry out a review of areas that could be privatised. Council leader David Ashton said: "All councils will have to evaluate things that the private sector might do better."

An incoming Tory government may cut local authority budgets to avoid council tax rises. This year the average rise in council tax in London is 1.2 per cent - less than half the national average.

Steve Johnson, a corporate director at London Councils, which represents the capital's 32 boroughs said of the moves: "The council gets the service it wants at an affordable price."