Capita wins congestion deal

Capita has won a five-year, £145 million deal to run the congestion charge, which it helped set up in London 11 years ago.

The FTSE 100 firm will take over running the scheme from incumbent IBM in November 2015, while Transport for London has the option to extend the contract for another five years.

Capita designed and set up the technology for the charge, then ran the scheme when TfL launched it in 2003, before losing out to a lower bid from computing giant IBM in 2009.

Now the firm, which brings in £3.3 billion revenues a year, will take over processing penalty charge notices for drivers using bus lanes or loitering in yellow box junctions as well as providing the IT systems and back office to run the congestion charge.

Andy Parker, Capita’s deputy chief executive, pictured, who takes over the top job from retiring boss Paul Pindar in March, said TfL wanted the firm to focus on customer services. “During the procurement, TfL really pushed for it to be easier for people to pay, more smart applications, and an easier website,” he said.

Several hundred people work on the congestion charge contract, and Parker said most would transfer to Capita. But asked about job losses, he responded it was “too early to say”.