BOSSES do not know whether a private company which runs council services brings value for money to taxpayers, an audit has revealed.

Capita, an outsourcing firm, runs a number of services for Blackburn with Darwen Council under a multi-million pound public private partnership.

The study, by accountants Grant Thornton, puts forward "urgent" recommendations because the council is unable to show the 15-year, £215million partnership achieves value for money.

Council bosses say measuring value for money is "not a straightforward task" but admit the issue needs more work.

The deal was signed in 2001. After the first five years, a review took place and recommendations, including taking some services back in-house, were made.

As a result of the five-year review, in November it was revealed the council's £2.4million-a-year ICT contract had been taken back in-house.

Grant Thornton was asked to assess progress on implementing other recommendations.

The firm found work on many changes was under way, but said "little formal progress" had been made. And it found the council had no clear plans setting out how it could demonstrate value for money - and no timescale for when this would be possible.

But Brian Bailey, the council's director of programmes and governance, said: "We are confident we can continue to work with Capita in a way that benefits the borough."