03 November 2006
Capita, one of the UK's largest government outsourcing companies, is set to stand down from the CBI's influential public services board, Public Finance has learnt.
Executives at the FTSE100-listed company, whose founder, Rod Aldridge, chaired the CBI's Public Services Strategy Board until the summer, are understood to have discussed Capita's intention to withdraw its membership at a recent meeting.
The PSSB regularly hosts events and meetings attended by ministers and senior Whitehall officials in charge of contracting. But the CBI stressed that Capita's impending withdrawal would not affect its lobbying and research work.
A CBI spokesman told PF: 'Capita was a valuable founding member of the CBI's PSSB. It is understood that it may be considering standing down from the board when its current subscription lapses.'
Sources suggested that Capita could stand down from the CBI altogether, as its executives consider a lower profile following the resignation of Aldridge in September.
He resigned after Opposition MPs raised concerns that his £1m loan to the Labour Party could have influenced government contracting decisions. Aldridge, who had chaired the PSSB since its establishment in 2002, denied those claims and said he was standing down to assuage any lingering concerns.
A Capita spokeswoman said that the firm's general involvement with the CBI was now under discussion. 'We are a member of the CBI. We review all our memberships on a regular basis,' she said.
While a withdrawal from the PSSB would not prevent Capita from competing for new high-value public sector contracts, some experts speculated that it could be a hindrance. One said: 'Capita will continue to be an influential contractor. But it could be excluded from some key discussions over future public services reforms.'
Capita's contracts include the Home Office's Criminal Records Bureau, the collection of the BBC's licence fee and oversight of London's congestion charge.
The PSSB has been influential in directing private sector involvement in the government's public services reform and marketisation programme.
PFnov2006
