THURROCK Council leader Councillor John Kent has spoken about the authority’s decision to terminate its agreement with strategic partner, Serco.

Earlier this week the council announced it had severed its ties with Serco, a body set up to “help governments and corporations across the world deliver services for less”.

The pair signed a 15-year contract in 2004.

The council has paid Serco just under £10 million to end to contract, which was costing the authority around £20 million a year.

They say the cancellation will now save the council up to £4 million a year.

Mr Kent said: “We have agreed to pay just under £10 million to end the contract – a lot of money, but only half what we have paid Serco – and before that Vertex – in the last few years, and would pay them each and every year for the next five years too.

“Obviously it’s not quite that simple, but we know that in these times of austerity we would rather any profits, so to speak, went direct on services to local people rather than Serco’s shareholders.

“That money is not simply a pay-off, but includes things like computer equipment and telephony that will transfer back to the council, as well as some sub-contractor costs – but admittedly there is a loss of profit payment within it.”

Mr Kent added: “This is not the time to detail the savings to the council – and council tax-payers of Thurrock – that will become clear over the coming months as we analyse the future savings we have to make, here in the chamber, in cabinet, and in overview and scrutiny meetings.

“However it is clear that there will be major savings of between £3½ million and £4 million every year.” Speaking of the future, Mr Kent said: “As you can tell from this we are looking at all of our outsourced services and staff – Billfinger for example - with a view to closely examining the advantages and disadvantages of bringing them back in-house … or not.

“I don’t want to commit to making any further decisions here, but I do know the hard work and effort our facilities management team and others put in on behalf of local people and I want us to find the best way forward for them and us too.

“Finally tonight, I want to assure the 350 or so people who will be returning to the council that we will be working very closely with Serco to make that move as smooth as possible over the coming months – we value their expertise and experience, and we are looking forward to them joining the Thurrock Council family.”