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Stroud NHS campaign progresses to judicial review

Finance | Tania Mason | 1 Nov 2011

Campaign group Stroud Against the Cuts has escalated its legal challenge against NHS Gloucestershire’s move to outsource services to a social enterprise, to a judicial review.

Lawyers acting on behalf of Stroud resident Michael Lloyd issued judicial proceedings against the NHS on 21 October, supported by Stroud Against the Cuts. They had previously issued a ‘letter before claim’ to the NHS management warning that they planned to seek a judicial review of the decision to farm out local Primary Care Trust services. The campaigners want the services to remain part of the public sector, fearing that transferring them to a social enterprise is the first step to privatisation of the NHS.

Similar moves to outsource service provision are under way at 20 primary care trusts across the country but this is the first one to have been halted by a legal challenge.  Campaigners have criticised the lack of consultation about the plans and fear that the new contracting arrangements will lead to a lack of accountability.

The contract is thought to be worth around £100m a year for three years.  If the contract had been awarded to Gloucestershire Care Services, it would have created the largest community interest company in the country.

The campaign group is to hold a public meeting on 7 November to allow members of the public and local NHS staff to find out more about the campaign and the legal case.  It also hopes to fundraise to pay the legal bills.

James Beecher, a co-ordinator of Stroud Against the Cuts, said the legal case alone cannot keep the services within the NHS, which is why the campaign is trying to attract public support to put pressure on NHS managers.  

He said: “Unless we act now we believe that in three years’ time these services will be taken over by a multinational healthcare company, as recently happened in Surrey.” In September, Central Surrey Health, a social enterprise, lost out on a £500m contract to Assura Medical, a private healthcare provider which is 75 per cent owned by Virgin Group.

Solicitors Leigh Day & Co claim that Gloucestershire NHS acted unlawfully by not holding a competitive pitch to choose a new provider.  However, others have pointed out that if a competitive tender process is held, private-sector providers have a good chance of beating the Community Interest Company that was NHS Gloucestershire’s first choice.

The campaigners say that NHS Gloucestershire could keep the services in-house or set up a standalone community NHS trust.

Lawyers acting on behalf of the PCT have 21 days to respond to the lawsuit.

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