Greenwich Council’s part-privatised enforcement team issue 150 fines – yet no income will go to the council
You may have seen the News Shopper dutifully report a Greenwich Council press release that 150 fines have been issued by new enforcement staff.
What they didn’t mention is that not a penny of income from those fines will go towards council coffers but instead head to the private company now running the scheme named LA Support owned by Kingdom Services.
As I covered in December in-house staff were let go and a private company hired. No fine income will be received by the authority until set up costs are met. The contract award is £383,000 excluding VAT.
Only once those initial costs are met will income be paid to Greenwich Council, yet the private company then takes a further slice: “A nominal cost per RBG issued ticket (£20) will be payable to the provider for the above service.”.
And only then is income divided 50-50. So in time Greenwich Council may see £30 from an £80 fine – and that’s not guaranteed.
The council state the “use of third party enforcement is cost-neutral” as if it’s some kind of good thing that no income will be heading to the public purse for some time – if ever.
A council report states they may raise £20,000 for Greenwich Council from 5,000 fines. At £80 a fine, that’s £400,000 income.
The old team may have been flawed, but is giving away almost all income good value for money instead of reform?
The council state after a year they may push this model further.
The adoption of this model came weeks before planned cuts were announced for staffing in teams collecting fly tipping and those jet washing and deep cleaning town centres including Woolwich town centre.
It’s along similar lines as outsourcing parking enforcement across Housing Department areas of the borough to Wing Parking in a deal which sees the private company retain all income. That includes vast swaths of land such as 3000-home Abbey Wood estate. That contract was agreed in 2014 and renewed in 2018.
I am wondering if these contracts are some sort of elaborate tax write-off/write down as no council could be so inept as to giveaway income.
So true anonymous201481.
An absolute disgrace, flawed and unworkable, who really creates these contracts? A very big percentage must be plowed back into council coffers. How and why would a council give up its means of revenue to private companies without seeing a penny back. And all Labour bangs on about is budget cutbacks. People need to wake up and vote for change in 2022.
All councils are funding essential amenities and plowing funds into housing stock refurbishments, Public Realm upgrades etc.
Parking in the Borough is ludicrous, no strong leadership, or direction. Who awards contracts with no means of revenue. Yet again!
A borough wide strategy to combat illegal parking, obstruction and abandoned untaxed vehicles must happen, if you managed this process rigorously in the first place you wouldn’t have half the problems you see on the roads daily. A stronger presence is needed. If any other London Borough can do it why can’t Greenwich? Most of these councils contract out their parking services and receive significant revenues by well-established parking enforcement companies such as Apoca or NCP etc. to fund much needed investment.
I totally agree Ahsley.
It really is time for change on Greenwich Council as the current Labour Leadership are failing residents time and time again. The go on about funding cuts from the Government which yes they have had to be fair,
However, the Council waste millions upon millions themselves which they have to take full responsibility for and can not put the blame on anyone else.
Parking recently lost 12.5 million as reported by Murky. GS Plus the Council off shoot company also lost millions of pounds. So much more money as been wasted on other projects including GLLAB. .
But then they cut services to the most vulnerable people in the Borough. Children, vulnerable adults, the elderly and disabled.
Surely we cannot allow to continue.
Very true Graham. Isn’t it time they dispose these wasteful off shoots and concentrate their resources on the boroughs vulnerable, Decaying Public Realm, Public spaces and how about upgrading to LED street lighting to help save money.
I would have thought a certain amount of income raised from fines would have gone to the Council to help fund vital front line services.