Barnet Council has announced plans to award the second of two major outsourcing contracts to private company Capita.

Council officers today revealed Capita as the preferred bidder ahead of EC Harris LLP for a multi-million pound contract to run much of its frontline services over the next 10 years, as part of its controversial One Barnet scheme.

Under the Development and Regulatory Services (DRS) contract, Capita is set to run current council services such as planning, environmental health and regeneration.

It follows an earlier decision from the council to award the first One Barnet contract, covering the provision of back-room services for the next 10 years, to Capita as well.

In total, the contracts are thought to be worth around £320million but the council claim this will save the taxpayer £164million over the coming decade.

Barnet Council leader Richard Cornelius said: “This is very good news for the Barnet taxpayer and users of these services. This is a very difficult time for local government but Barnet has faced up to the twin challenges of falling income and rising demand.

“We have taken difficult decisions and taken them early and that leaves us well placed for the coming years.”

The proposal to hand the DRS contract to Capita will be put to the council’s cabinet to approve on June 24.

This represents a six-month delay to the original plan, which had scheduled for the contract to be approved in January, as a result of a recent High Court action launched against One Barnet.

Last month, following a three-day hearing at the Royal Courts of Justice, disabled pensioner Maria Nash, 68, had her claim for a judicial review of One Barnet rejected by High Court judge Lord Justice Underhill on the basis her court action was launched too late.

She has since lodged a case with the Court of Appeal.