Edinburgh councillors have voted down a proposal to outsource a raft of facilities management services to Mitie.
A report recommending the outsourcing of 2,000 jobs in a seven-year deal worth £170m to Mitie was rejected by councillors when it came to the final vote.
Councillors yesterday voted to terminate the procurement process without any contract award.
The council said that its officers would now “focus on implementing a programme of improvement based on the vision set out in the council’s internal improvement plans”.
The council had calculated that the deal would save £51.5m over the first seven year term. However, SNP group leader Steve Cardownie, the deputy council leader, said: “At the end of the day, having looked at the private sector bid versus the public sector comparator, we felt there was not sufficient advantage in going for the private sector bid.”
