Ground-breaking deal could bring 600 jobs to blackspot

National support services company Amey is negotiating with Redcar and Cleveland Council on a partnership package which would generate millions of pounds in saving and create hundreds of jobs.

Amey, whose diverse interests range from education to road and rail infrastructure and defence, is the council's "preferred bidder" for delivering a ten-year strategy plan.

It would take over the running of the council's financial and accounting, information technology services, revenues and benefits and customer service.

A contract is expected to be signed this autumn and council chief executive Colin Moore believes the benefits could be seen by residents in next year's council tax demands.

Amey is guaranteeing minimum savings of £44.4m over the next ten years, a commitment to creating 622 jobs - with the expectation of reaching 1,500 - over and above the 1,100 council workers who would transfer to that company's payroll.

It also promises a £36.2m investment in information technology, the establishment of its northern headquarters in the Redcar area, comprising a 180,000sq ft regional business centre, which could attract work from other parts of the UK, and an IT training centre or academy.

It would also develop a new council chamber and civic suite at Redcar, provide three walk-in council contact centres for the public at Eston, Redcar and Guisborough, and 17 other access points across the borough.

Mr Moore said: "We are very confident that what we are going to do really is at the cutting edge, delivering better services at lower cost for the people of this borough.''

Councillor David Walsh, leader of Redcar and Cleveland Council said: "We believe that this is far and away the most far reaching partnership undertaken by any local authority in the North-East and indeed one of the biggest in the country.''

Tony Barry, managing director of Amey's local authority division, said: "This is going to be the heart of Amey's business in the North-East."