Capita has finally signed a much delayed £320 million deal with Barnet Council, after a judicial review of the outsourcing agreement was dismissed by the High Court.

The ten year deal will see Capita deliver a range of back office functions to the north London council including corporate programmes, customer services, estates, finance, human resources and payroll, information systems, procurement, revenues and benefits.

A Barnet resident had challenged the council's contract with Capita, claiming that it had failed to consult before outsourcing. However, in April the council successfully defended the High Court legal challenge, where Lord Justice Underhill ruled that the application for judicial review was out of time.

This decision was appealed in July, but last week the Court of Appeal judges agreed with Lord Justice Underhill's ruling.

Councillor Richard Cornelius, leader of the council, said: "I'm delighted with the judges' decision.

"We can all now get on with making the huge savings in our back office costs which we need to do if we are to continue protecting our frontline services. Nobody has stepped forward to propose either cuts in services or increased taxes as an alternative to this programme."

The contract with Capita aims to save Barnet £126 million over the next ten years.

Councillor Cornelius added: "We have to be clear that we are in line for a decade of austerity and we have to look at all opportunities to drive down costs while supporting our services."