Cabinet brings official end to £23m a year Mouchel deal

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COUNCILLORS met last night to finalise the axing of Mouchel.

Plans to sever ties with the contractor, who the council pays £23million a year to manage a host of services, were announced last month.

The Cabinet will now bring services back in-house, with Mouchel providing services such as software to manage business operations support.

The original contract, which was due to run until 2015, will have to be bought out with negotiations ongoing with Mouchel.

Council leader, Councillor Andrew Geary, said the changes will not effect services for residents.

He said: “If we bring some of the operations in house then we can deliver the same, or better, service to residents of Milton Keynes.”

The Conservative administration believes the move will give it greater flexibility and save money.

But some opposition councillors, including Liberal Democrat Douglas McCall, have speculated it will give them more power to make cuts in the future.

However, councillors at the meeting agreed an additional recommendation to make sure the proposal receives the highest level of scrutiny across all parties.

The council has refused to reveal the amount that it will cost to end the contract with Mouchel.