A MULTI-MILLION pound partnership scheme to bring new council offices to Teesside has been announced.

Redcar and Cleveland Borough Council has joined forces with the Norwich Union Public Private Partnership Fund to sign a £9.5m deal that includes new offices for 420 staff at Guisborough and Redcar.

The council's building at Cargo Fleet, which has been difficult to maintain and expensive to run, will be sold as part of the private finance initiative (PFI) deal.

The PFI will also provide a new business centre at South Bank and allow the council a better annual Rate Support Grant by providing 70 per cent funding throughout the 25-year life of the scheme. The council will have to find the remaining 30 per cent.

The 220 staff in the development department will move from Cargo Fleet to part of the former foundry site at Rectory Lane, Guisborough and 200 social services staff will have a new base in offices next to Redcar and Cleveland House in Kirkleatham Street, Redcar.

The new business centre at Puddlers Road, South Bank, replaces existing premises, will create 39 office units and 16 workshop units.

Council leader David Walsh said: "The agreement, which includes maintenance and servicing arrangements over the next quarter of a century, is one of the most important the council has entered into."