The Cabinet of Merton Council met on Monday 22 June 2026, approving variations to the CCTV and ANPR maintenance contract and the leisure operator agency model, and awarding a new contract for agency workers.

Variation to the CCTV and ANPR Maintenance Contract

Cabinet approved a contract variation for the CCTV and ANPR maintenance contract, utilising Regulation 72(1)(b) of the Public Contracts Regulations 2015. This variation will extend the contract until 5 November 2027, with a total value of £1,750,000. The report presented to Cabinet highlighted that the original contract value of £3.5 million had been fully utilised due to increased operational demand, additional deployments, and essential project work. The variation is necessary to maintain statutory enforcement services, continue essential maintenance, complete control room and infrastructure upgrades, and enable the installation of additional cameras. Failure to approve the variation risked disruption to statutory enforcement services, loss of revenue, reduced network coverage, and reputational damage. The variation ensures operational continuity while a full re-procurement is undertaken. The contract variation is expected to be fully funded from the existing CCTV and ANPR revenue budget.

Leisure Operator Agency Model Implementation

Cabinet approved a contract variation to Greenwich Leisure Limited (GLL) to act as the Council's Agent for the delivery of leisure services. This change will transition the existing contract to an agency model, which is expected to result in significant savings for the Council through VAT recovery. The report explained that under this model, the Council acts as the principal operator, and GLL acts as the agent, delivering services on behalf of the Council. This approach aligns with recent HMRC guidance and is considered best practice across the sector. The variation is not expected to impact the services provided to residents. Authority was delegated to the Executive Director Environment, Civic Pride and Climate to conclude negotiations and enter into a Deed of Variation. The estimated financial benefit from this change is approximately £250,000 per annum, with a 50/50 split in savings between Merton Council and GLL.

Contract Award for Agency Worker Contract

Cabinet approved the direct award of a contract for agency workers through the North East Procurement Organisation (NEPO) framework. This decision follows a review of procurement options and aims to reduce reliance on agency workers while ensuring flexibility and access to specialist skills. The NEPO framework was selected over the ESPO framework due to its cost-effectiveness, stronger governance, and the provision of a dedicated on-site Account Manager. The new contract is expected to deliver significant savings compared to current arrangements, with a projected cost reduction of £140,000 over the five-year term. The contract will cover the supply of temporary agency staff across various services, including social care, children's services, housing, and legal services. Social value requirements, such as local employment and skills development, will be embedded within the contract. The contract is valued at approximately £95 million excluding VAT over its five-year term.