Liverpool Council has moved to end its multi-service joint venture known as Liverpool Direct Ltd (LDL), with BT after the telecommunications giant was unable to agree to price reductions.

The council in order to meet public sector savings targets after reduced budgets has asked BT to further reduced service prices, but will now move to take complete ownership of the joint venture, bringing services back in house, after BT failed to agree to the cost cuts.

LDL had provided a range of services including payroll, HR, IT, and revenue services, with the contract planned to cover up services until 2017.

The mayor Joe Anderson said: ”Over the last three years as much as possible has been done to protect services to the vulnerable from the budget cuts. However going forward this cannot continue.”

He acknowledged that despite price cuts by BT, these changes would not be enough: "Unfortunately BT feels unable to commit to any further price reduction within the contract as they need to sustain their own financial position. Moreover, the City Council is now well placed, as a result of the long collaboration with BT and the learning gained from the Partnership, to continue to drive forward business transformation and run the services with consequent cost savings to the city."

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