Liverpool City Council (LCC) has negotiated a deal with telecoms giant BT that will see the authority take full ownership of its Liverpool Direct Limited (LDL) scheme.
LDL currently provides LCC with a range of services including HR, payroll, IT and web services, customer access and revenue and benefits services.
The programme was launched in 2001, employing over 1300 people in a deal that is said to be worth around £70 million a year.
It was initially a partnership between the local authority and BT, but these new arrangements will see responsibility wholly transferred to Liverpool by 1st July.
LDL will continue to deliver services to the council as well as to existing third party contracts under the new arrangements.
Discussions Took A Number Of Months
The news follows the March announcement that the joint venture between the two organisations was to come to an end over disputes surrounding savings.
Negotiations were on-going for number of months after LCC claimed that austerity measures and the financial position of the council meant the agreement with BT was no longer feasible.
“We have enjoyed a long and successful partnership with BT through LDL, which has brought commercial expertise, service transformation and resources to the city,” claimed Liverpool mayor, Joe Anderson.
“This transformation has only been achievable due to the sustained collaborative working between BT and their respective teams of staff. However, as part of our three-year budget strategy – to find £156 million savings following government funding reductions – it was right that we agreed to move LDL in a different direction,” he added.
Such savings were to be sought from suppliers, including BT, ultimately leading to the decision to take full ownership of LDL and end the contract with the company.