Merton Council's Cabinet is scheduled to convene on Monday 22 June 2026, with a key focus on financial and operational matters. The agenda includes discussions on variations to existing contracts for CCTV and ANPR maintenance, as well as the implementation of a new agency model for leisure services. Additionally, the Cabinet will consider the award of a new contract for agency worker services.

Variation to the CCTV and ANPR Maintenance Contract

A significant item on the agenda is the proposed variation to the existing contract for the maintenance of the Council's CCTV and Automatic Number Plate Recognition (ANPR) systems. The report outlines a request to vary the contract with Tyco Integrated Fire and Security Ltd, utilising Regulation 72(1)(b) of the Public Contracts Regulations 2015. This variation would extend the contract period until 5 November 2027, with an additional value of £1,750,000. The report highlights that the original contract value of £3.5 million has been fully utilised due to increased operational demand, additional deployments, and essential project work. The proposed variation is intended to maintain statutory enforcement services, essential maintenance, and control room upgrades, while also enabling the installation of new cameras. A full re-procurement process is planned to commence ahead of the contract's expiry. The report states that approving this variation is considered the most cost-effective and least disruptive option to avoid service disruption, loss of enforcement income, and reduced public safety outcomes. The variation is expected to be funded from the existing CCTV and ANPR revenue budget.

Leisure Operator Agency Model Implementation

The Cabinet will also consider the implementation of a leisure operator agency model, which involves a contractual arrangement where the Council acts as the principal provider of leisure services, and Greenwich Leisure Limited (GLL) acts as its agent. This proposed change to the existing contract with GLL, which currently manages the Council's three leisure centres until 30 November 2030, is primarily driven by VAT efficiencies. Under the agency model, the Council can treat its leisure services as non-business activities for VAT purposes, allowing it to recover VAT on associated costs that were previously irrecoverable. This is expected to generate significant savings for both the Council and GLL. The report notes that this model aligns with recent HMRC guidance and is becoming best practice across the sector, with other local authorities such as Barnet, Hillingdon, Kingston, and Wandsworth having already adopted similar arrangements. The proposed variation to the contract is intended to formalise this transition for the remainder of the contract term, with no other changes to the service specification or the quality of services provided to residents. The financial implications suggest an approximate benefit of £250,000 per annum from this change, with a 50/50 split in savings between the Council and GLL.

Contract Award for Agency Worker Contract

A further item for discussion is the contract award for agency workers. The Council is seeking to award a new contract through the North East Procurement Organisation (NEPO) framework, following a comprehensive review of procurement options. The current Managed Services Provision contract with Comensura is set to expire on 13 December 2026. The report recommends adopting a Neutral Vendor model through the NEPO framework, which is identified as a cost-effective approach that can deliver savings. Agency staff are acknowledged as a critical component of the Council's workforce, providing essential flexibility and supporting the delivery of statutory and frontline services, particularly in areas such as adult social care, children's services, and housing. The Neutral Vendor model, where a managed service provider oversees a supply chain of recruitment agencies, is seen as providing a more flexible and responsive approach compared to previous models. The NEPO framework is favoured over the ESPO framework due to its potential for greater cost savings, capped agency charge rates, and centralised management. The proposed contract is for a five-year term, with an estimated total cost of £114 million (including VAT) over its duration. The report highlights that this approach aligns with the Council's commitment to reducing reliance on agency workers while ensuring the continued provision of essential services and supporting recruitment and retention strategies. Social Value requirements, including local employment, apprenticeships, and ethical recruitment practices, will be embedded within the contract delivery.