AN OUTSOURCING firm with a multi-million pound council contract has been criticised after increasing its profits.

Capita Group, whose subsidiary Capita Symonds has a £14million-a-year deal with Blackburn with Darwen Council, saw pre-tax profits rise 12 per cent to £364million - despite public sector gloom sweeping East Lancashire.

The announcement was yesterday ((FRI)) blasted by Darwen MP Jake Berry, who said the results were hard to justify when 1,000 council workers in the borough had been told their jobs were at risk.

He said: “When the profits are going up so much, it is time they shared some of the pain.

“In an age when councils’ budgets are falling, it is clearly not appropriate for the profits to be so high.”

Mr Berry said he backed council bosses’ demand of a 10 per cent saving on the Capita contract, which covers highways management and back office functions.

Capita’s results revealed pre-tax profits rose on a turnover of £2.74billion, up from £2.69billion last year.

In a message to shareholders, chief executive Paul Pindar said the firm had delivered ‘robust results against a challenging background’.

Blackburn with Darwen Council leader Kate Hollern said: “Capita agreed to review the services it offers the council and to make 10 per cent savings.

“This is part of the overall savings proposals currently being decided.”

Capita said: “Capita’s revenues are earned across a range of businesses, with 36,800 people at more than 250 sites.

“Capita has agreed to review the services it provides, with a view to helping to deliver further efficiencies to the council.”