Scrapping the controversial One Connect Limited partnership has left Lancashire County Council in a stronger financial position, according to a report.
County Hall is set to save at least £2.5m over the next two years by disbanding the company set up with telecom giant BT in 2011 to run council services.
One Connect was shut down in January this year following concerns over the way it was being run. A police investigation into claims of financial irregularities has since been launched.
In a progress report due to go before the county’s executive scrutiny committee next week, councillors will be told the formation of a new partnership called BT Lancashire Services Limited has already had a positive impact on the council’s budget.
“The revised financial arrangements place the county council in a stronger financial position,” says the report. “The negotiations have also closed off an area of financial risk for the county council.
“On balance it is clear the revised contractual arrangements with BT, together with the return of services, represents an improved financial and operation position for the council.”
When One Connect was set up more than 1,100 LCC staff were seconded to the company. Following its demise around 750 have returned to the county council, with a further 400 remaining with the new company.
Services which have been returned to County Hall include Human Resources, Procurement, Learning and Development, Care and Urgent Needs, Pensions and Print, Mail and Document Management.