Blow for Serco as Yorkshire prisons remain in public hands

Troubled outsourcing company Serco has been dealt a fresh blow as the government confirmed that Yorkshire prisons Hatfield, Moorland and Lindholm will continue to be run by the public sector. Serco had been in the leading position to win contracts for the institutions, should they be privatised.

The firm remains under criminal investigation, and yesterday announced its head of UK and Europe would step down. Last month, chief executive Chris Hyman resigned from the firm.

In a statement on Friday, Serco said:

We understand that the urgent need for change at these prisons means that the typical six-month period of mobilisation and transition to the private sector would not be in the best operational interest of the prisons.

Acting group chief executive Ed Casey, added:

From meetings with the UK Government it is clear that the operational needs of the prisons will be best served by the necessary changes being implemented without further delay.