Council says services won’t be affected by cancelling of Mouchel contract

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MILTON Keynes Council has said services will not be affected after Mouchel Group Plc announced it is going into administration.

Earlier this month we reported how the council is severing ties with the service provider.

The firm’s lenders, RBS, Lloyds Banking Group and Barclays, are set to take it in hand after investors and shareholders failed to agree to give banks shares in return for erasing a large chunk of its £140 million debt.

This will see them receive the assets in a deal that will get rid of shareholders, but allow the company to keep its 8,000 jobs and honour any ongoing contracts.

A council spokesman said: “While the council has a business continuity plan in place to deal with a number of scenarios, Mouchel’s news does not in fact affect how we currently deliver services in Milton Keynes, or the proposals to transfer services and staff which we talked about earlier this month.

“Everything continues ‘business as usual’.”

Opposition councillors said they feared the decision to end the contract with Mouchel could lead to cuts to services.

But council leader Andrew Geary denied the accusations.