A scheme to outsource council services to private contractor Capita has led to millions of pounds being spent on management consultants, it has been claimed.

The OneBarnet transformation programme – under which Capita took over a range of back room and frontline council services from 2013 – has cost nearly £24 million to date, according to a new report.

A “substantial part” of that figure was paid to management consultants engaged to legitimate the council’s outsourcing strategy, the study says.

Authored by professor Dexter Whitfield of the European Services Strategy Unit, the report claims Capita’s 2017 pre-tax loss will lead to a stronger focus on “financial extraction” from contracts.

It accuses the council of equating better efficiency with cost-cutting – even though that tends to lead to lower productivity and higher commissioning, consultation and management costs.

The council claims the contracts with Capita result in savings of £6 million every year for council taxpayers.

In addition, most of the high-cost services – such as family services and social care – are still provided by the council.

But Capita recently came under fire from outgoing Conservative councillor for Mill Hill Sury Khatri, who accused it of “fleecing” taxpayers.

Professor Whitfield said: “Barnet is a vitally important lesson that every outsourcing proposal should be challenged from the start, if necessary through the options appraisal, business case and procurement process, whilst promoting alternative policies, workplace organising, building community support and taking selective industrial action.”

Leader of Barnet Council Cllr Richard Cornelius commented: “It is telling that this report has a foreword by John McDonnell. This is a man so reckless with the public’s money that even Ken Livingstone had to fire him for trying to bankrupt Greater London Council in his ideological class war with a Conservative government.

“But, as Conservatives, the only ideology we are interested in is saving residents money. It is a fact that, without the Capita contracts, council tax bills would now be £156 higher. But some things are cheaper in-house. This is why we voted to keep Street Scene services in-house last year.

“Whatever keeps council tax bills down and residents’ bank balances up, we will vote for. Council tax bills in Barnet are now £97 lower in real terms than they were in 2014. If you want to keep tax down, vote Conservative on May 3.”