Liverpool unveils 'take over' plans

The council will offer its services nationally

Councillors in Liverpool have set up a company which will help to run the services of other local authorities in the UK.

The company - NewCo - will act as a consultancy firm and offer services and products.

Backed by officials in Whitehall, the scheme is unique in local government and town hall leaders hope it will raise millions of pounds and create extra jobs.

Talks are under way with other councils which have expressed an interest in the services currently provided in Liverpool.

Mike Storey says it is a "win-win" project.

Two private firms - BT and Enterprise - have agreed to invest in NewCo.

The proposed portfolio includes offering to operate council call centres - based on the success of Liverpool Direct, which handles all telephone inquiries about the city's services.

The council will retain a 51% controlling stake in NewCo, but equity in the company has been offered to private sector companies to raise funds.

Council leader Mike Storey said: "By taking on the running of services for other councils, we will create jobs and increase the amount of money we can spend on services.

"It's a win-win situation for the people of Liverpool and will cost them nothing because the money we are using to set up NewCo is coming from the private sector."

David Henshaw says NewCo will generate funds

A number of councils have opened discussions about having services provided by the company.

City council chief executive David Henshaw said: "Every week we are visited by local authorities from up and down the land.

"The creation of NewCo will mean we are able to offer our expertise to both the public and private sector, raising valuable income for the city council."

An executive board, which will oversee the formation of the company, is expected to be appointed early in August.