Maria Nash has taken legal action against Barnet Council, claiming that it failed to consult council residents.

The court action includes a claim that the council failed to carry out a proper assessment of the plan to outsource BPO services to Capita under the Equality Act.

The 10 year £320 million outsourcing contract to Capita is expected to save as much as £125 million over the course of the contract, generating savings of £1 million a month, with the move to create savings following severe budget cuts.

The contract which has been originally set to begin in April 2013 has now been postponed following the legal action.

Councillor Daniel Thomas, deputy leader and cabinet member for resources and performance, said: "I can only reiterate that governments, both centrally and locally, have to make some difficult decisions and that while it is right these decisions should be open to scrutiny, it is ultimately the taxpayer who bears the financial brunt of these legal challenges."

Barnet Council saved by Capita