West Berkshire Council has agreed to terminate a £168m IT partnership deal with Amey after only three years of the 10-year contract.
As part of the termination agreement, Amey will give the council £3m to complete its IT investments.
Tony Barry, group director of strategic development for Amey, said, “Amey has made a major contribution to the development of council services. It has become clear, however, that the original objectives for the partnership, set by both the council and Amey, cannot easily be realised. The settlement is therefore in our collective best interests.”
The partnership agreement was signed in June 2002 and was to run for a period of 10 years.
Graham Jones, leader of West Berkshire council, and Jeff Brooks, leader of the opposition, confirmed the termination was an amicable settlement achieved in close collaboration with staff and trade unions, and subject to cross-party co-operation.
The transfer of services would not result in any additional cost to council tax payers, they said. “This is the best outcome for the people of West Berkshire. The investment has improved service delivery and the settlement enables us to continue this progress. We acknowledge that the Amey contribution will be of benefit to the public for several years to come and we wish them well."