Barnet Council In Dispute With Residential Care Provider

Barnet Council is taking the company which runs its residential care homes to arbitration in an effort to stave off an £8million claim for tax payers’ money.

The cash-strapped firm, Catalyst, made the claim in June this year, despite having a smaller claim of £4m rejected out of hand just six months earlier.

The company won the contract to manage the homes on behalf of the council in 2001, as part of a modernising drive to bring the homes in line with Government legislation.

A clause in the contract allows Catalyst to recoup its deficits from the council if it runs at a loss of more than 10 per cent. But the council has dismissed the claim, arguing that it was not submitted within the time stipulated by the contract.

A Catalyst spokesman said it remains hopeful that changes to the contract can be negotiated before the arbitration process begins.