The controversial sale of 20 council-owned Norfolk care homes to a private healthcare company is off, after council leaders pulled the plug on the deal.
Norfolk County Council agreed to an 'in-principle' deal to sell its care company Norse Care and the care homes to private company Stow Healthcare Group in January, when the Conservatives were in control of County Hall.
But the deal had yet to be signed and sealed and the authority, now led by Reform, has withdrawn from the proposed sale.
Staff and residents at the homes, which are dotted across the whole of the county, were informed of the decision this morning.
Reform leaders said they had decided the sale was not in the best interests of the people who live in the homes - or for the Norfolk taxpayers.
But it now leaves a huge question mark over what the future now holds for the homes and for Norse Care, which runs them.
When the in-principle sale was agreed, the Tory leaders who ran County Hall at the time had said the sale would enable fresh investment into the homes, while the people living in them - and the staff - would remain under the new ownership.
Political opponents had criticised the deal and the suitability of the would-be buyers, with Bury St Edmunds-based Stow Healthcare having been bought by United States-based CGEN Care Group.
Nick Taylor, cabinet member for commercial assets and revenue generation, said: “When we took office, we committed to a careful and considered review of this proposed sale, and we have done just that.
“We needed to be sure that this was the best deal on the table. After many months of negotiations, we have concluded that it was not and we are now looking at better alternative options.”
Scott Hussey, cabinet member for adult social care and public health, said: “Residents, their families, and staff at the care homes have been at the centre of every decision we have made on this.
“Had the sale gone ahead, we were fully prepared to ensure continuity of care, and this remains my priority now. I want to reassure everyone connected with Norse Care that services will continue as normal while we work with officers to find the right long-term solution for Norfolk.”
It remains unclear what that solution will be, although the authority's recently-appointed chief executive Dennis Bacon has a background in providing care.
The contract for Norse Care to keep running the homes was extended twice while negotiations continued, but the council-owned Norse Group had signalled it wishes to withdraw from the care market.
Brian Watkins, leader of the Liberal Democrat opposition group at County Hall, said: "This is fantastic news for residents, families and staff, and a victory for everyone who has spoken up and challenged the proposed sale.
"Norfolk Liberal Democrats have been raising concerns about the future of these homes and the uncertainty the process has caused for the people who live and work in them."
But he said the homes now need investment and "a secure, sustainable future".
Maxine Webb, leader of the Green group, said: "The Greens have opposed this brutal sell-off from the start. We've consistently called out the secret, behind closed doors deal that meant Norfolk people and councillors had no say or knowledge over what it meant for them."
She called for Reform to be transparent about what happens next.
Kay Mason Billig, Conservative leader, said her administration had pursued the sale because Norse and the council were losing millions of pounds running them.
She said: "There isn't the money to spend updating them, which was why a provider was sought who could and would, under contract, protect the staff and residents, ensuring the continuation of these homes."
She said Reform needed to show how they would pay for the homes going forward and where the money to update them would come from.
Ben Watson, Labour's sole county councillor, said: "Labour has opposed these plans from the outset. We believe that vital public care services and the assets that support them should remain in public hands, not be sold off to an American-owned private company."
But he said the future for the homes needed to be made clear and called for a full public report to cabinet, with the council's external auditors asked to examine the process and whether it represented value for money for Norfolk taxpayers.
Independent councillor Alexandra Kemp, who had called for the deal to be ditched, said: "Social care is the county council's core service and the council now needs to take responsibility and undertake the condition surveys for the care homes it has neglected to invest in for years and keep them in public hands."
The care homes which were due to be sold
Bishop Herbert House, Norwich
Cranmer House, Fakenham
Ellacombe, Thorpe Hamlet
Harker House, Long Stratton
High Haven, Downham Market
Lydia Eva Court, Gorleston
Mayflower Court, Norwich
Mountfield, Norwich
Munhaven, Mundesley
Rebecca Court, Heacham
Rose Meadow, North Walsham
St Edmunds, Attleborough
St Nicholas House, Dereham
Sydney House, Stalham
Westfields, Swaffham
Three Norse Care properties - Springdale Care Home in Brundall, Burman House in Terrington St John, and Linden Court in Watton - have already closed.
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