BT scores £325m extension with Liverpool Council

BT has scooped a contract extension with Liverpool City Council which is worth £325m.

The deal, originally signed in 2001, will see a joint venture between the two - called Liverpool City Direct (LDL) - extended to 2017. According to BT, the extension will now take the value of the contract to £800m overall.

As part of the deal, the council has outsourced its IT and call-centre operations, which has seen £53m of tech investment from BT.

Councillor Richard Marbrow, the council's executive member for central services, said the venture had proved its worth quickly. LDL has cut the time taken for housing benefit claims to be processed from 143 days to 28 days, he said, and has also collected £70m of debt that was owed to the council. Marbrow said the council will continue to invest in technology.

LDL, which is owned 80 per cent by BT and 20 per cent by the council, is also supplying its services to other public sector bodies, including Stockport educational authority and the Grace Academy in Solihull.

LDL hopes to announce two new contracts next month, according to its business manager, Rob McVicker. It also hopes to sell more into central government, working with BT to "spot opportunities".